When a Development Trust is funded by a public body, each side may wish to develop an agreement setting out formally the terms of the grant.
The funding body should provide the Trust steering group with an outline of the agreement to assist them in preparing the their bid for funds. This may be in the form of an outline business plan. The final agreement might cover the following issues:
The funding body may require that the aims and objectives of the Trust make reference to some policy objective - perhaps helping create employment opportunities and promoting economic development.
The Trust may be required to appoint a number of representatives from public, private or voluntary and community sectors, and to ensure that the majority of the Board live or work in the area.
The agreement should specify the level of core funding offered by the funding body, the period over which this is available, and the terms. These terms may require matching funding.
The funding body should recognise that the Trust will normally be expected to employ an executive director and one other member of staff.
The agreement is likely to require the Trust executive director and Board to prepare a full business plan on the lines of the funding bid document within a specified period, and to update the plan annually.
The Trust may well be required to produce and publish an annual report.
The agreement is likely to specify financial monitoring procedures and the criteria for evaluating the performance of the Trust.
The agreement should also specify
where and how acknowledgement should be made to any funding body.
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