Good intentions are not enough. What turns a contribution into real, durable impact is governance — the structures and disciplines that decide what gets funded, make sure money is spent on what it was given for, and catch problems early. This guide sets out how a heritage giving trust governs the programmes it supports.
From idea to funded programme
A programme does not get funded on enthusiasm alone. It moves through a sequence: a charitable need is identified; a delivery partner is assessed; the headline terms are agreed in a funding term sheet; due diligence is completed; and a full grant agreement is signed before money moves. Each step is a checkpoint, and any one of them can stop a grant that is not ready.
Due diligence on delivery partners
- Governance: does the partner have a functioning board, clear objects, and proper financial controls?
- Track record: has it delivered comparable work, and can it account for past funds?
- Safeguarding: does it have policies to protect children and vulnerable people in its programmes?
- Integrity: are there any anti-corruption, sanctions or conflict-of-interest concerns?
Due diligence is not a one-off gate. The grant agreement keeps these obligations live throughout the funding relationship, with reporting, monitoring rights and the ability to suspend funding if standards slip.
Restricted funding and use of funds
When a gift or grant is restricted, the funds may be applied only to the agreed programme and budget. The grant agreement requires the partner to hold funds in a properly identifiable account, keep accurate records for years, and apply nothing to unlawful or partisan-political purposes. This is how donor intent is honoured all the way down to delivery.
Safeguarding and anti-corruption
Two non-negotiables run through every funded programme: safeguarding and integrity. Partners must protect the people their programmes touch and report incidents without delay. They must comply with anti-bribery, anti-money-laundering, sanctions and counter-terrorism-financing laws. A breach of either is grounds to suspend or terminate funding immediately — these are not box-ticking clauses.
Governance clauses can feel heavy, but they exist to protect beneficiaries and donors alike. A partner that resists basic safeguarding, reporting or financial-control terms is telling you something important before any money moves.
Tranches, reporting and clawback
Money is usually released in tranches, with each instalment after the first conditional on satisfactory progress and accepted reporting. If funds are left unspent, or are spent in breach of the agreement, the trust can require repayment or reallocation — the clawback. Tied to a clear reporting schedule, this keeps incentives aligned: deliver and report, and the next tranche follows.
The documents that carry it
Programme governance lives in the documents. The grant agreement sets out use of funds, milestones, reporting, safeguarding, anti-corruption and clawback. A partnership MoU frames how the trust and a partner co-operate. A funding term sheet records the headline terms before the full agreement. All three are available as fillable templates.