Dear Big Lottery Fund,

I would like to request information on the number and size of direct and indirect grants made to profit distributing organisations.

I have noticed recently that a number of grants are being made, both directly and through award partners, to organisations incorporated in such a way as they are able to distribute profits to shareholders and/or company owners. I am interested in understanding the scale of grant making by BIG to these type of organisations.

I look forward to hearing from you.

Ben Metz
www.benmetz.org

Dear Lyndsay,

I hope I'll be able to provide the clarification you are after.

When they incorporate organisations choose to become entities that can distribute profit or not distribute profit by inserting a clause in their articles of incorporation. A not for profit distributing organisation is generally incorporated as a company limited by guarantee at companies house and that may then go on to register as a charity at the charities commission. Including a not for profit distribution clause in the articles of the organisation is one of the prerequisites of obtaining charitable status.

Alternatively organisations can choose to incorporate in a way that allows them to distribute profit to owners or investors.

Generally speaking not for profit distributing organisations are considered to be operating for 'public benefit' (as defined by the Charities Commission and for profit distributing organisations are considered to be trading for 'private benefit' (the financial benefit of the owners or investors).

Can you let me know if this provides the clarification you are seeking?

Yours sincerely,

Ben Metz

Hi Lyndsay

I've left a message on your voicemail with my number. Do call me when you are able to.

Yours,

Ben Metz

Lyndsay,

Many thanks for your call.

Can I amend the request for the following information:
- number of grants made and overall amount made by type of organisation receiving them (company limited by share, company limited by guarantee, charity, public sector organisation, etc)

Can you please provide this on an annual basis for the last five years.

And can this please cover direct grants and grants made through awards partners, across all funds that BIG disburses and not just lottery funds.

Many thanks - I look forward to hearing from you.

Ben Metz