Charities may be eligible to receive a grant to be used to fund their general charitable activities or for a specific project. The Charity Excellence Framework website contains a substantial amount of practical guidance and information for charities that wish to seek sources of grant funding. 

Charities also give grants to charities and non-charities. As to your charity giving a grant to another charity, you can do so as a way of meeting your charity's charitable purposes but only if it is in your charity's best interests to do so, and only if your charity's governing document permits it. Similarly, if your charity is to give a grant to a non-charity, it must be to help achieve the purposes of your charity. 

Any decision by your trustees to give a grant must be carefully considered, and that decision should only be made after they have examined the results of suitable "due diligence" checks carried out by them, the match between the purposes and aims of your charity and  the proposed recipient of the grant, any conflicts, and an assessment of the risk to your charity's assets, reputation and beneficiaries involved if the grant is made. 

Any grant should be covered in detail by a written agreement between grantor and grantee.  The central purpose of a grantor using a formal grant agreement is to ensure that it can specify and control how the recipient of the grant funds uses the funds, and, in particular, it should include appropriate monitoring arrangements that the grantor will operate. 

Charities which provide grants should adopt a formal grant making policy to establish the criteria, principles and procedure that the charity will follow when receiving an application for a grant. Such a policy can serve not only to regulate how the charity deals with applications but also as a guide for applicants as to whether they will be eligible to be considered for a grant and what is required of them in relation to their application.

The Agreement for Grant by a Charity to a Charity (Long Version), the Agreement for Grant by a Charity to a Charity (Short Version) and the Agreement for Grant by a Charity to a Non-Charity Organisation are template examples of grant agreements. Note also that a charity might receive a grant from a non-charity organisation. Charity Grant Making Policy is a template example of a grant making policy which can be adapted to a particular charity's requirements.