Operating Principles
The Trust has been established via a deed which gives it very wide powers within the permitted framework of the Landfill Communities Fund ("LCF") (see Appendix I).
The Trust's primary focus will be environmental schemes, historic buildings and public amenities.
Funded projects should have enduring and long-term benefits, and a high level of public engagement (either due to public access or high levels of public participation in the project, or because education / information is a significant output of the project).
The Trust will largely operate by funding projects where alternative funding is unlikely to be available, targeting not-for-profit organisations (such as community groups, and charities who themselves are initiating the relevant projects).
The Trust will generally not fund local authorities, profit-making organisations or private clubs, but may fund projects within the public sector (eg schools) where mainstream funding is not available.
The Trust will mainly support capital projects, but will also give consideration to funding front-line revenue costs (although not general administration expenses).
The Trust will (a) seek, where possible, to be the main provider of funding for projects, (b) support people who are helping themselves, (c) seek to act as a catalyst by giving grants that may attract matched funding or that may initiate a project that would otherwise be unable to attract funding.
There are no constraints on projects that are funded by non-LCF monies, although initially the thrust of that extra finance will be directed to schemes falling marginally outside LCF criteria, either because of the 10 mile limit or the precision of the LCF objectives.
It is proposed that the maximum annual grant for any project will be £50k, and that approximately 80% of all grants would be in the range £10-50k. For example, assuming an average small grant is £2,000, the number of schemes available for funding might be:
- 1 x £50,000
- 2 x £25,000
- 14 x £10,000
Total = £240,000 (80%)
- plus 30 small grants x £2,000
St Modwen will meet the administrative costs of the Trust so that the monies received can be distributed without deduction.
Publicity and promotion
The schemes supported will generally come from areas where St Modwen is active so that St Modwen can be seen to be putting "something back into the community". Schemes will be solicited via the regional office networks backed by suitable local promotion and a website, which will be linked to the St Modwen website.
Governance
The Trust will be run by a Board of Directors. The majority of Board members must be non-executive, that is, independent people who are not employed by St Modwen.
The Trust Board will comprise:
- 2 company representatives, initially Anthony Glossop (chairman); and Tim Haywood (treasurer);
- and 3 independents, initially Peter Thorne of Wragge & Co; John Glasgow of EON; and Mark Gaterell of Birmingham University
- the secretary will be the St. Modwen Company Secretary
The Trust's Board are expected to meet four times a year to make funding decisions, monitor the Trust's performance and develop the strategy for the Trust. Urgent funding decisions may also be made between formal meetings if necessary by conference call or e-mail, provided that a majority of the independent trustees agree.
Appendix I
The Landfill Communities Fund
The LCF is a funding scheme for community and environmental projects. Projects must lie within 10 miles of a an active landfill site to be entitled to benefit and must fall within the LCF framework, the principal objectives of which are:
- To reclaim, remediate or bring land back into social, environmental or economic use
- To reduce, mitigate or prevent pollution on land, where the pollution has been caused by an activity which has now ceased
- To provide and maintain public amenities and parks
- To promote biological diversity through conserving, restoring or enhancing natural habitats
- To restore and repair buildings and structures that are for religious worship, or of architectural or historical interest
Landfill operators collect a tax for every tonne of waste they receive. The tax is designed to reduce the amount of waste that is sent to landfill each year. A proportion of the tax (5.5%) that landfill operators collect can be allocated to the LCF. This is not a tax break for landfill operators but does mean that they can put something positive back into landfill areas.
Landfill operators can donate that proportion of the tax they collect to organisations that have been set up to distribute funding.
The tax credit can however not exceed 90% of monies paid to the organisation. The balance has to be provided from other sources. St Modwen's operation at Avonmouth will therefore provide funding to The St Modwen Environmental Trust ("the Trust"), which will distribute funds to approved qualifying projects. St Modwen will also fund the balancing 10% of funding.
All distributors of LCF funding are regulated by ENTRUST on behalf of HM Revenue and Customs and must comply with the rules of the LCF. They can only fund projects that are eligible for funding through the Scheme. Funders may however also have additional criteria (see operating principles).
The term 'Environmental Body' is used by ENTRUST to describe organisations that can manage LCF funding. The Trust has been set up to act as the Environmental Body for funded projects - ensuring that funding is spent in a compliant way.
The Trust has also been set up with wider objectives that are not governed by LCF or ENTRUST. Projects funded under these objectives, however, can not benefit from LCF monies or the matching top-up.