Contributing Third Party Funding Explained
The biggest single reason for delaying grant requests stems from the lack of understanding of Contributing Third Party (CTP). An explanation of this element of the grant process is given below:
Why is Contributing Third Party funding Required?
Under the Landfill Communities Fund, FCC Environment can donate a small percentage of the landfill tax they collect to WREN to fund suitable projects. Of this the Government allows FCC Environment to reclaim 90% as a tax credit. In addition the scheme’s regulators ENTRUST charges an automatic levy and there is a cost associated with administering the funds.
In order to reduce the losses incurred by participating in the Scheme, FCC Environment (as a condition of providing WREN with the landfill tax money) requires project applicants to secure the help of eligible ‘Contributing Third Party donors’ to make up the this shortfall. This equates to 10.75% of the funding provided to each successful project.
This funding cannot come from Landfill Communities Fund monies and must be raised from other sources. Funding is paid directly to FCC Environment and only covers the shortfall they suffer by participating in the scheme.
To work out the amount of CTP funding you need to find multiply your application amount by 10.75%. This transaction must not be included in Project Costs on the WREN application.
Please note any CTP donor must provide written confirmation that they are willing to provide the contribution for the project.
When is the Contributing Third Party payment due?
For successful projects, the request for payment of the Third Party Funding donation is sent to your contributing third party within 7 days of the Board decision. Payment is required within 28 days of the request to secure the grant offer.
Who can be a Contributing Third Party Funder?
The key consideration regarding CTP is the term ‘Unique Benefit’. Simply, a contributing third party cannot gain any unique benefit from the project put forward for funding. Examples of organisations which can be contributing third parties are:
- Private Companies
- Public sector organisations- Local Authorities, County Councils
- Voluntary organisations
- Private Donors
- A person who shares the benefits with others. For example, a member of a church congregation or a person who uses with others a village hall or other community facility.
Who cannot be a Contributing Third Party Funder?
As detailed previously, organisations / individuals gaining a unique benefit from a project cannot be a contributing third party. Specific examples are:
- Environmental Bodies
- Any individual or organisation, which is directly connected with the landfill operator, WREN or the applicant.
The CTP transaction, while facilitated by WREN, is a transaction outside WREN project funding. The payment is made directly from the contributing third party to the Landfill Operator, FCC Environment.