Sponsors and community grants
If your organisation is not incorporated, you need a sponsor before you can apply for a small or major community grant.
An application for incorporation is not sufficient.
Who can be a sponsor
A sponsor organisation must:
- be an incorporated organisation
- meet the eligible organisations criteria
- agree to accept legal and financial responsibility for the grant.
Organisations licensed to operate electronic gaming machines may also be sponsors.
What a sponsor does
A sponsor is an incorporated organisation that agrees to accept legal and financial responsibility for the grant.
If your grant is approved, payment will be made to the sponsor. It is the sponsor's responsibility to ensure the grant is spent on the approved project within the specified time frame.
If the project requires insurance, the sponsor must make sure these arrangements are made.
Depending on the obligations of the insurance contract, the sponsor is not responsible for insurance arrangements following completion of the project and all accountability requirements.
The unincorporated group is responsible for insuring any equipment against incidents such as theft or damage.
Who can't be a sponsor
Government or semi-government organisations cannot be sponsors.
Exceptions may be made for local councils in smaller communities and remote areas where it is not possible to be sponsored by an incorporated organisation.
Sponsor and applicant relationships
You should determine your relationship with your sponsor before you apply for a grant.
It is good practice to negotiate an agreement outlining each party's roles, responsibilities and expectations.
Your agreement should also include how the grant will be administered.
It is up to the sponsor how they choose to give you the funds. Some give you the money to complete the project. Others may prefer to hold the money and reimburse you when you show receipts or invoices.
The sponsor organisation is fully accountable. At the end of the project, the sponsor must complete acquittal documents in accordance with accountability requirements.
After the grant process is over
Once the grant has been spent and all accountability requirements have been met, the sponsor has no further legal or financial responsibility for the grant or the items or activities for which the grant was approved.
If a sponsored organisation stops operating
If your sponsored organisation ceases to exist while the grant is being completed, you should tell your sponsor to immediately contact the Community Benefit Fund Secretariat.
Secretariat staff will discuss the most appropriate action regarding the completion and acquittal of the project.
If the unincorporated body ceases to exist after the grant has been spent and all accountability requirements met, it is the unincorporated group's responsibility to ensure equipment or other community property purchased from a grant is made available to other community organisations.
You need secretariat approval to transfer these items before action is taken.