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Job Retention Scheme for Charities

Can a small Charity that receives public funding re annual grant for staff costs apply furlough ?

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I am the treasurer of a small charity with one employee. We have closed our operation as a result of Coronavirus. Approximately 45% of our total  income derives from a government grant for staff costs. Our other income is raised from user fees, donations, fundraisng etc. I have read that where non public sector organisations receive ongoing public funding for staff costs they will not be expected to apply furlough ? We have 1 employee and the government funding, paid annually, covers about 65% of the wages cost. We will lose income as a result of closing down the operations so it woud be very helpful to cover at least 80% of the Wages cost if possible. Do I understand this correctly ? Is there any circumstances in whcih we could apply furlough ?

 

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RLI
By lionofludesch
01st Apr 2020 10:28

You clearly doubt whether you can. Why is this ?

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Replying to lionofludesch:
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By Windy
01st Apr 2020 13:23

I read it here ( see link) - under public sector organisations paragraph - but it states it applies to other non public sector employers who receive grants for staffing

https://www.charitytaxgroup.org.uk/news-post/2020/coronavirus-job-retent...

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Replying to Windy:
RLI
By lionofludesch
01st Apr 2020 13:35

Windy wrote:

I read it here ( see link) - under public sector organisations paragraph - but it states it applies to other non public sector employers who receive grants for staffing

https://www.charitytaxgroup.org.uk/news-post/2020/coronavirus-job-retent...

As noted below, you would need to have a conversation about whether you need thius grant at the moment. You could be better off not claiming the grant if the employee cannot carry out his duties anyway. Hard to say without knowing the terms of the grant and whether the work will continue.

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By DouglasN
01st Apr 2020 11:37

Is the grant specifically given for salary, or is this just what the charity has decided to put it towards? I suppose a conversation with the provider (presumably the local authority) is required, can you argue that under these exceptional circumstances you would like to use the grant against ongoing running/governance costs and furlough the employee. If they agree to this then you could furlough.

I do not see how you can get a govt grant for salary and then claim 80% from the govt again for furlough.

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Replying to DouglasN:
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By Windy
01st Apr 2020 14:56

When making the application I had to state what expenses the grant would be used for and I stated staffing.
The grant is given for the year to 31/3/20.
It could be argued that if April & May was a furlough period then this is not covered by the funding.
Thanks for your response

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Replying to DouglasN:
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By Windy
01st Apr 2020 14:56

When making the application I had to state what expenses the grant would be used for and I stated staffing.
The grant is given for the year to 31/3/20.
It could be argued that if April & May was a furlough period then this is not covered by the funding.
Thanks for your response

Thanks (0)
Replying to DouglasN:
avatar
By Windy
01st Apr 2020 14:56

When making the application I had to state what expenses the grant would be used for and I stated staffing.
The grant is given for the year to 31/3/20.
It could be argued that if April & May was a furlough period then this is not covered by the funding.
Thanks for your response

Thanks (0)
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By paul.benny
01st Apr 2020 11:41

Annual grant, you say.
When is this paid?

I think you have to look at the period to which the grant (past and future) covers and go from there to determine whether public funds are covering your payroll costs.

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