1. Small Charities Challenge Fund (SCCF)
MannionDaniels | Edinburgh| June 2018

2. UK Aid Direct Consortium Partners:

4. What is UK Aid Direct?
Funded by the UK’s Department for International Development (DFID), UK Aid Direct was established in 2014 as a successor to the Global Poverty Action Fund (GPAF), which was created in 2010.
UK Aid Direct is a challenge fund designed to support the UK’s commitments to achieving the Global Goals.
Grant Type
Organisation Type
UK Aid Direct Community Partnership
For organisations with income less than £1 million
UK Aid Direct Impact
For organisations with income less than £10 million
Jo Cox Memorial Grants Strengthening
For organisations with income less than £500,000
Jo Cox Memorial Grants Network
Small Charities Challenge Fund
For organisations with income less than £250,000

5. What is the Small Charities Challenge Fund (SCCF)?
Set up to target small, British grassroots organisations not currently eligible under the regular funding rounds of UK Aid Direct
Organisations must have an average annual income of less than £250k
Multi-sectoral in nature and reflects DFID priorities
Grants of up to £50k will be available for projects lasting up to 2 years

6. What is the Small Charities Challenge Fund (SCCF)?
Open funding round and applications will be reviewed every 6 months
The third funding round is now open - the deadline is: Thursday 27 September, 2018 at 17:00 GMT.
Limited payment in advance now available

7. Focus of the UK Aid Direct current funding round
Applicants should have considered how projects will directly tackle poverty and respond to one or more of the 4 UK Department for International Development (DFID) strategic objectives (click here to view DFID's Departmental plan):
strengthening global peace, security and governance
strengthening resilience and response to crisis
promoting global prosperity
tackling extreme poverty and helping the world’s most vulnerable

8. Application process All applications must be completed online
Reviews will take place shortly after the deadline
Allocation is £4m over a 2-year period
Financial management assessment (FMA) and due diligence (DD) will be carried out to ensure eligibility criteria is fully met

9. Review process All proposals will be assessed by experts reviewers
Reviewers receive extensive guidance on scoring and reviewing proposals
Reviews will be QA process to ensure fair assessment
DFID moderate reviews and successful applicants chosen

10. Findings from first SCCF funding round
Experience
Project design and capability to deliver are key, especially for new organisations
Identify the need
Understanding of local context, meaningful consultations with beneficiary groups, and coordination with relevant local government departments or other organisations
Logic
Lack of logical linkage between the ‘need identified’ and the ‘intervention proposed’

11. Findings from first SCCF funding round
Evidence
Applicants should include evidence at each stage of the proposal
Scale and Realism
Unrealistic and inflated number of estimated beneficiaries
Value for Money
Demonstrate the rationale and define the long term developmental impact

12. Findings from recent research, and previous UK Aid Direct funding rounds
The design of UK Aid Direct projects needs to be strengthened (most issues have stemmed from this)
A greater focus should be given on sustainability and building sustainable elements into all projects
Projects need to be able to respond better to changes in context and build on feedback and learning in order to adapt
Approach to capacity building of beneficiaries, implementing partners, frontline staff and other stakeholders needs greater consideration

13. Project design section
Look at the guidance section on our website
Read about DFID’s strategic objectives and focus
Look at what the fund is trying to achieve
Think about how your project will contribute to the objectives of the fund
Consider which UK Aid Direct approaches best fits with your approach

14. Project design section
Think about, and detail who you consulted with during your project design
Consider and demonstrate why your project is needed
Consider and show what it is you want to achieve with the project and how
Show how are you working with others
How many people will benefit from the project?
Show how you can address gender and disability issues

15. Leave no one behind – recommended reading
Policy papers from DFID 1. Stepping up a gear for girls and women: updates to DFID’s Strategic Vision for Girls and Women, to 2020 and beyond 2. Disability Framework – One Year On: Leaving No One Behind 3. Leaving no one behind: Our promise (updated 10 January 2017)

16. Results section
Think about and demonstrate what a successful outcome of the project would look like
Consider and show how you will monitor your results
Reflect on how the project will continue once funding ends

17. Results framework
Each stage of the results framework should form a logical flow
Outline the outcomes of the project
Choose 2 indicators – ways of measuring the change
Develop output indicators
Outline the project activities

18. Value for money (VFM) – things to consider
Consider VFM across your project when designing it
Take a holistic approach and consider the following:
Effectiveness
Economy
Efficiency
Equity
What would this grant enable you to do that you can’t currently do?

19. Risks Think about all risks the project faces:
Security
Financial
Environmental
Political
You won’t be penalised for putting all risks down
Be realistic

20. Financial & Due Diligence

21. Applications - financial requirements
Stage
Detail
Requirements
Application stage
Financial due diligence
Completed by the fund manager using details from the application
Integrity due diligence
Workplan and budget
Produce a fully costed workplan in line with UK Aid Direct Financial Guidelines
Prior to contracting
Financial management assessment (FMA)
An in-depth due diligence assessment requiring provision of documentation, staff interviews and a possible site visit
Revised workplan and budget
Revisions on SMILE (our online portal)

22. Policy/Procedure gaps identified by FRT
Area Assessed
Guidance
Anti-bribery/corruption, fraud and whistle blowing policies
Includes a range of best-practice templates for you to use when protecting your charity against fraud.
Conflict of Interest Policy
Includes a section on “How to identify a conflict of interest”
Banking controls, Segregation of duty
Controls and segregation of duty are explained
Risk Management
Includes details of how to manage risk, a risk register template, and examples of potential risk areas
Insurance
Safeguarding – children and vulnerable adults
Travel and subsistence
Includes expenses policy guidance

23. What is a budget? A budget is….
An important financial plan for the future
A control tool used to measure financial performance
An important aid to forecasting future spending patterns
An aid to predicting cashflow requirements
A valuable learning tool

24. Budgeting considerations
Be realistic – not over ambitious
Follow your project plan
Profile your costs
Research costs thoroughly
Talk to colleagues, do not prepare in isolation
Gain consensus – let the budget owner own the budget

25. What should a budget include?
Do include
Inflation (if appropriate)
Detailed, granular budgets
Clear descriptors
True costs of project delivery
- Accurate staff time allocation
- Justifiable overhead / support costs
- All activity costs
Do not include
Non-cash items (such as depreciation)
Any ineligible costs (such as vehicles, gratuities etc.)
Contingency funds or speculative items
Accruals or provisions
*use the who, what, where, when, how approach …….

26. Findings from SCCF 1

27. Example feedback of a Successful Application (1)
Project was based on lessons already learned
A clear justification was provided for the selection of geographic area (marginalised communities and teacher training improvement needed)
Good range of statistic were presented
In line with UK Aid focus and priority areas
On-going collaboration with local government
Project would be making the most of local resources
On-going capacity building of teachers
Results Framework had appropriate measurable activities, outputs and milestones
Detailed monitoring plan was provided

28. Example feedback of an unsuccessful application (1)
In-line with UK Aid priorities of sustained poverty reduction
Focused on vulnerable/marginalised populations
Unclear who would be training teachers and what content would be covered
No clear links with Ministry of Education or national curriculum
Costs in budget contained very little detail
No budget notes were provided to explain how costs had been arrived at
No clarification if there were any costs associated with staff trained
Sustainability needed to be addressed especially how Ministry of Education/district officials will be involved with this

29. Example feedback of a Successful Application (2)
Project design was well thought through and clearly demonstrated
Good relationship built with the implementing partner
Linked well with UK Aid Direct priorities and Bangladesh development priorities
Organisation clearly outlined their experience in the region
Budget was very strong
Risks were comprehensive and mitigation strategies realistic
Results framework provided strong indicators with sex disaggregated milestone targets

30. Example feedback of a Unsuccessful Application (2)
Reviewer had concerns with the intended approach and intervention
Applicant hadn’t provided evidence of the need in the particular district they were proposing the project for
Although the applicant stated that local government individuals backed the project based on certain conditions, these conditions weren’t outlined
Very little budget given to M&E activities
Project details didn’t match up to detail provided in the results framework
Gender and disability were well considered
Results framework stated that monitoring would be carried out via questionnaires and interviews but this hadn’t been budget for

31. Tips from SCCF1 Grant Holders
“Read the UK Aid Direct website carefully and understand what kind of projects DFID is interested in supporting”
“Make sure you understand concepts such as Value for Money and Efficiency”
“Spend time, and budget, getting the M&E right. Don't be over ambitious in what you will achieve and what data you will collect. However, develop good learning questions so you can be continually looking to improve”
“Create partnerships with other NGOs to make more effective delivery and better value for money”

32. Tips from a Performance and Risk Manager
“Show you understand the context of where you propose to be working”
“Explain how you will work with and build local capacity”
“Be clear about your objectives”
“Consider how you will collect evidence demonstrating what you hope to achieve”

33. Important points to remember
A worked example should be included
The results framework, workplan and budget operate together
You should be able to understand your outputs and activities
You need to have an idea of your budget lines and unit costs for both project activities and for your general project costs
You need to know your implementing partners

34. Any Questions?