Grant Advice
Grant Funding for Co-operative and Community Benefit Society Clubs
Many members’ social clubs in South Wales, including former Workingmen’s Clubs, are exploring grant funding to improve their facilities, modernise premises and expand community services. While some clubs have sought to reposition themselves by adopting titles such as “Sports and Social Club” or “Community Club”, funders generally look well beyond a club’s name.
In practice, eligibility for grant funding depends primarily on governance, constitution and community purpose, rather than branding. This note explains why constitutional provisions, particularly those dealing with surplus assets on dissolution, are critical to grant eligibility, outlines the relevance of community-focused legal structures, and highlights common funding considerations for clubs in South Wales.
Grant funders assess how an organisation is structured, controlled and ultimately who benefits from its activities. Many traditional club constitutions were drafted on a mutual basis and include provisions allowing surplus assets to be distributed among members if the club winds up.
From a funder’s perspective, this presents a significant obstacle. Most public and charitable grant bodies require assurance that any assets acquired or improved with public funds will remain available for community use, rather than passing into private hands.
2.1 Asset lock and dissolution provisions
Funders strongly favour organisations whose governing documents include an asset lock. An asset lock ensures that, on dissolution, remaining assets must be transferred to another community organisation, charity or body with similar objectives.
Clubs constituted as mutual societies or private members’ clubs often lack such provisions, which can make them ineligible for many community-based funding programmes. Introducing an asset lock, either through amendment of the existing rules or by adopting a different legal form, can significantly improve a club’s prospects.
One option increasingly considered by clubs is conversion to a Community Benefit Society (CBS). A CBS exists to benefit the wider community rather than its members and operates on a not-for-profit basis. Surpluses must be reinvested in furthering the society’s community purpose, and distributions to members are tightly restricted.
In practice, conversion from a co-operative society to a community benefit society does not alter the day-to-day operation of the club. The society continues to be registered under the same Act of Parliament, with the change being one of statutory classification only, from a society registered under section 2(1)(a) to one registered under section 2(1)(b), and with the principal difference being a clearer emphasis on community benefit rather than member benefit.
From a funding perspective, CBS status is often viewed favourably because:
Conversion to a CBS typically requires:
In addition to improving grant eligibility, CBS status may also support applications for discretionary business rates relief, although this remains subject to local authority decision-making.
While legal structure and asset protection are central, funders will also expect clubs to demonstrate:
Constitutional change alone does not guarantee funding, but without appropriate governance in place, many grant applications will not progress beyond the initial assessment stage.
For clubs seeking grant funding, the starting point is not rebranding but governance. Constitutions that prioritise community benefit, restrict private distribution of assets and embed long-term public value are far more attractive to grant funders.
Whether through conversion to a Community Benefit Society or by carefully amending existing rules to include an effective asset lock, clubs that formalise their community purpose place themselves in a much stronger position to access funding, secure rate relief where available, and protect their assets for future generations.