Grants FAQ

Frequently Asked Questions about the 2017/18 Community Chest Grants

April 2018

Q1 Are the Emergency Funding Grants for the 2017/18 financial year or for the 2018/19 financial year?  In your letter it states that it is for the 2017/18 financial year.  However, the last tranche of the Emergency Funding Grant will be paid before 30 June 2018, which is within the 2018/19 financial year
A1
  1. The Emergency Funding Grant is an allocation of funding by Community Chest for the Community Chest 2017/18 Financial Year.
  2. It is an allocation that is aligned to the 2017/18 Community Chest Financial Year but will be paid out in two tranches, spanning two Community Chest Financial Years.
  3. The first tranche will be paid on the 31 March 2018 as part of the 2017/18 Community Chest Financial Year and the second tranche will be paid out before 30 June 2018, as part of the 2018/19 Community Chest Financial Year. This is however all part of Community Chest 2017/18 Financial Year Grant Allocations.
  4. It does not affect the beneficiary’s application for further funding which may become available for the 2018/19 Community Chest Financial Year.
Q2 Which documents must the beneficiary NGO submit for this grant?
A2

2.1

Beneficiaries who are only recipients of the 2017/18 Emergency Funding Grant must submit:

a. The signed Grant Agreement letter before 23 April 2018.
b. A one page letter outlining what the Grant will be used for by 30 April 2018.
c. Their 2018/19 Budget by 30 April 2018.

2.2

Beneficiaries who are recipients of the 2017/18 Emergency Funding Grant as well as further funding for one additional year i.e. for 2018/19 (multi-year grant) must submit:

a. The signed Grant Agreement letter before 23 April 2018.
b. A one page letter outlining what the Grant will be used for by 30 April 2018.
c. Their 2018/19 Budget by 30 April 2018.

2.3

Beneficiaries who are recipients of the 2017/18 Emergency Funding Grant as well as further funding for more than one additional year (multi-year grant) must submit:

a. The signed Grant Agreement letter before 23 April 2018.
b. A one page letter outlining what the Grant will be used for by 30 April 2018.
c. Applicants who receive this multi-year grant must submit:
    i.  Their 2018/19 Budget by 30 April 2018.
    ii. Their 2019/20 Budget by 28 February 2019.

2.4

Beneficiaries who are not recipients of the 2017/18 Emergency Funding Grant but only receive funding for the 2018/19 financial year must submit:

a. The signed Grant Agreement letter before 23 April 2018.
b. A one page letter outlining what the Grant will be used for by 30 April 2018.
c. Their 2018/19 Budget by 30 April 2018.

2.5

Beneficiaries who are not recipients of the 2017/18 Emergency Funding Grant but receive funding for more than one additional year (multi-year grant) must submit:

a. The signed Grant Agreement letter before 23 April 2018.
b. A one page letter outlining what the Grant will be used for by 30 April 2018.
c. Applicants who receive a multi-year grant must submit:
    i.  Their 2018/19 Budget by 30 April 2018.
    ii. Their 2019/20 Budget by 28 February 2019.

Q3 “I don’t understand it when my Grant Letter states that e.g. “the grant has been converted into a one year funding grant for the period 2018/19. The amount approved for 2018/19: R50 000.00.
This grant will be paid in two tranches in the same financial year. This grant will be paid as follows:
• 50% by 31 March 2019.
• 50% after a monitoring visit by Community Chest but not later than 30 June 2019.”

 Should the “50% by 31 March 2019” and “50% by 30 June 2019” not read “50% by June
   2018”
and “50% by 31 March 2019”, since this grant is for the 2018/19 financial year?
A3
  • The Community Chest Financial year is from 1 April to 31 March
  • We endeavour to pay out all funds specifically referred to above by 31 March 2019 for recipients receiving funds during the 2018/19 financial year. Community Chest will communicate with beneficiaries via a payment advisory letter when payments will be effected and this will take place prior to 31 March 2019.
  • Please further note that grant payments may in future be approved in one financial year but be paid out over 2 or 3 financial years. This is to ensure that we have provided for sufficient time frames between grant payments to do site visits, follow-up discussions and other standard M&E and Impact Assessments before a 2nd or 3rd tranche of the grant is paid out. So for example you will find that a grant allocated will have its first payment paid out on 31 March 2019 and will have the 2nd tranche paid by no later than June 2019 to allow for the above to take place. Beneficiaries must please note that Community Chest has instituted compulsory Project Impact and Data Conversations (PIDAC) after a tranche of a grant has been paid and the 2nd or 3rd tranches cannot be paid out until such time that a satisfactory Project Impact and Data Conversation report has been filed on the use of the 1st or 2nd tranche of the grant.
  • While the original letter states “in the same financial year” it is intended to say “from allocations made in one financial year”.
Q4 What does it mean when the Grant letter states that we will receive “50% of the Grant very shortly and the remaining amount by end June 2018?”
A4

Recipients of the 2017/18 Emergency Funding Grant will receive payments in two tranches:

  • First payment by 31 March 2018.
  • Second payment by 30 June 2018, as long as a satisfactory Project Impact and Data Conversation visit has been conducted with the beneficiary NGO.
Q5 What does it mean when it states that our organisation has received an additional Multi-Year grant? Will this kick in next year or this year and for how long?
A5
  • As of 1 April 2018 Community Chest has introduced the Multi-Year Grant for the first time.
  • A multi-year grant will cover either two years or three years, depending on the correspondence you have received from Community Chest.
  • A two year Multi-Year Grant will cover the period 2017/18 and 2018/19.A three year Multi Year Grant will cover the period 2017/18, 2018/19 and 2019/20.
  • Every Multi-Year Grant has a fixed start period and a fixed end period. Please see your grant letter for this.
  • Multi-Year Grants are paid to ensure continuity of project or programme and to provide our beneficiary partners will income certainty and planning stability.
Q6 Must Multi-Year Grant Recipients still complete the Annual Due Diligence process?
A6 All recipients of Community Chest funding MUST complete the annual Due Diligence process.  This process normally takes place between April and June of each year.  Even though a Multi-Year Funding Grant Agreement has been entered into with the NGO beneficiary, payments in any given financial year will ONLY be released if the Due Diligence Process and the PIDAC Process has been successfully completed for that year.
Q7 If Community Chest states that the Grant has been approved, must a Due Diligence Process still be completed?
A7
  • Notwithstanding any existing grant agreement between Community Chest and a beneficiary agency, every Community Chest beneficiary agency MUST successfully complete the annual Due Diligence Process.
  • Failure to complete the annual Due Diligence Process or failing to meet the Due Diligence Compliance Requirements will result in a pending grant payment being suspended until such time that there is a successful Due Diligence result.
  • A Grant Agreement does not negate the obligation to complete the annual Due Diligence Process.
Q8 As a multi-year Grant Recipient, if we have received notice of a Multi-Year Grant of e.g. R150 000 are we to understand that we will receive the R150 000 EACH YEAR or is it R150 000 split over a 2 or 3 year period?
A8

It means R150 000 split over 2 or 3 years.  Not R150 000 each year.  If your letter states that you have been approved for a grant of R150 000 the payment will be done 1 of 2 ways:

  1. R75 000 during 2018/19 financial year paid in 2 tranches
  2. R75 000 during 2019/20 financial year paid in 2 tranches

OR

  1. R50,000 during 2018/19 financial year paid in 2 tranches
  2. R50,000 during 2019/20 financial year paid in 2 tranches
  3. R50,000 during 2020/21 financial year paid in 2 tranches

 A follow-up letter will confirm your Grant Payment Schedule.

Q9 If Community Chest states that the Grant has been approved, but I do not pass Due Diligence Process, what will happen to our approved Grant?
A9
  1. Beneficiaries are encouraged to be in early communication with Community Chest via email at Grants@comchest.org.za in order provide any information on the issues the organisation is facing which might impact negatively on its Due Diligence outcome.
  2. Community Chest will assist and advise beneficiaries on how best to overcome any obstacles en-route to the successful completion of the Due Diligence Process. This however does not negate the responsibility and obligations of the beneficiary to ensure that they successfully complete the annual Due Diligence Process.
  3. Beneficiaries will be given until 30 June each year to successfully complete the Due Diligence Process in order to qualify for the release of payments.
  4. Once this date has expired and if the beneficiary still has not successfully completed the  Due Diligence, then only will the approved funding be at risk of falling away.
Q10 If I am a multi-year Grant recipient, am I allowed to apply for any new grants that may be advertised by Community Chest, prior to the expiry of my Multi-Year Grant period?
A10 Yes you will be allowed to apply for any new advertised Grants while you are in an existing Multi-Year Grant Cycle, as long as it’s not for the same programme or project being funded by the Multi-Year Grant Agreement.

And finally …

The Community Chest is committed to helping our beneficiary partners both apply and access our new Grants with ease and unencumbered by burdensome processes. We encourage our partners to mail us their queries to:  Grants@comchest.org.za - For attention Crystelle Arends or to request a face to face meeting to discuss any query related to an approved Grant.

Issued by the Community Chest Grants Team for the Community Chest - 9 April 2018