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On: Jun. 25, 2009
UK non-profits face ‘take it or leave it’ approach from funders, says Critical Conditions report

Non-profit organizations seeking financial support are facing a large number of non-negotiable terms and conditions attached to grants from both government and charitable organizations, according to Critical Conditions, a new report from the UK’s Directory of Social Change released this week. “When funding terms and conditions are non-negotiable, applicants can be faced with a take-it-or-leave-it situation,” said report author Jay Kennedy. “If they refuse to sign the agreement, they could lose their funding. If they sign and ignore the terms, they may jeopardise their project, organisation and beneficiaries.” The new report notes that: “Funding terms have an impact on an organisation’s independence and even potentially on its sound management. The funding relationship by its nature is an unequal one, and the funder’s approach can make the difference between a constructive partnership and a controlling relationship”. The report confirms findings from the Wellesley Institute’s reports We can’t afford to do business this way; and, Canada’s non-profit maze.

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