Grant Compliance in the UK: What Every Funder Must Know

Essential UK rules, Charity Commission expectations and practical controls for compliant grantmaking.

By Plinth Team

Grant Compliance in the UK: What Every Funder Must Know

UK funders must ensure money is applied properly, risks are managed proportionately and decisions are documented and explainable.

  • Follow Charity Commission guidance on due diligence and monitoring.
  • Apply proportionate controls based on size and risk.
  • Keep a clear audit trail using systems like Plinth.

Core compliance principles

Compliance is about purpose, stewardship and evidence, not red tape.

  • Act within your governing document and charitable purposes.
  • Know your grantees: basic checks for identity, status and risk.
  • Monitor delivery and take reasonable steps to address issues.

Key takeaway: proportionate steps protect funds and beneficiaries.

Practical controls across the lifecycle

Embed simple checks into each stage to avoid last‑minute scrambles.

  • Eligibility screening and sanctions/PEP checks where relevant.
  • Agreements with clear conditions and reporting expectations.
  • Progress updates and payment holds if risks emerge.

Key takeaway: small, consistent controls beat occasional heavy reviews.

Records and reporting

Boards need assurance that grants are lawful and effective.

  • Decision notes explaining approvals and declines.
  • Evidence of monitoring, changes and close‑out.
  • Annual statements summarising risk management and learning.

Key takeaway: Plinth provides auditable trails and exports for scrutiny.

FAQs

Do micro‑grants require the same checks?

No. Apply a lighter set of checks proportionate to value and risk.

Are overseas grants allowed?

Yes with enhanced due diligence and clear controls on use of funds.

What if problems arise during delivery?

Record actions, support grantees to remedy issues and adjust payments if needed.