Grant Aide Memoire
The Merchants House of Glasgow Grant Aide Memoire
Purpose of this Aide Memoire
The purpose of this Aide Memoire is to provide an overview of the charitable funds of the House and of the regulations, guidelines and other provisions (of trust deeds and other constitutional documents) relating to these funds and, thereby, to provide assistance to the Directors and Committees of the House in its charitable grant making activity.
Section 1 (which relates to the unrestricted charitable funds of the House):
(a) restates the statement of the overriding principal charitable objectives of the House as set out in the Rules of the House;
(b) sets out the Guidelines which the Grants Committee now recommends to the Board that the Board should adopt in respect of the House’s charitable grant making activity from the House’s unrestricted funds; and
(c) sets out a statement as to the control and governance of these funds and the extent of the grant making powers delegated to committees of the House and the current limitation imposed on these powers.
Section 2 sets out key information as to each of the endowment, expendable endowment and restricted funds of the House, indicating briefly the historical backdrop to the fund, its value as at 31 December 2020, the purposes for which the fund is to be applied, and the total sum distributed from the fund in the year ended 2020.
In the case of all but one of the funds, they are completely under the direct control and administration of the House, such control and administration being exercised either by the Directors or by the House’s Grants or Benefits Committee under the powers delegated to such Committee.
In the case of the Glasgow Nursing and Medical Relief Association, a special committees have a role in their administration and a brief statement as to the roles is set out in the information relating to these funds below.
It is recommended that: –
With a view to keeping this Aide Memoire current and up to date, it is kept under review by the Directors and formally considered by the Directors at their first quarterly Meeting each year and that at, or following, such Meeting such amendments as may be necessary or desirable be made to it.
In this Aide Memoire:
“Unrestricted Fund” means a fund which may be disbursed by the Directors, at their sole discretion, for any purpose within their powers and which is consistent with charity legislation;
“Designated Fund” means a fund which is an Unrestricted Fund and which the Directors have chosen to set aside for a particular purpose. It is open to the Directors to alter or withdraw the designation at any time.
“Restricted Fund” means a fund which the donor has specified may only be used for a particular purpose;
“Endowment Fund” mean a fund which the donor has stipulated is to be retained as a capital sum and, consequently, is invested with any increase or decrease in the market value of investments being allocated to the fund. The income arising from the fund may be either Restricted or Unrestricted depending on the donor’s wishes;
“Expendable Endowment Fund” means a fund which comprises a capital sum which is invested but of which the donor has specified that the capital may be spent in addition to income. The income and disbursed capital can be Restricted or Unrestricted in nature.
1.1 Governance and Regulations of the House
In awarding grants out of its unrestricted funds, the House is required to act within the scope of its Governance and Regulations which state that:
“The principal Charitable Objectives of the house are (1) for the relief of poverty by payment of benefits to individual beneficiaries, who may or may not have membership qualifications and (2) to provide assistance in the form of grants to Charitable Institutions chiefly in Glasgow and the West of Scotland. NOTE: In the light of the decision to rename the Pensions Committee as the Benefits Committee, the Rules of the House should be altered so that the expression “pensions to pensioners” reads “benefits to individual beneficiaries”.
1.2 Proposed (amended) Guidelines for Charitable Grant-making from Unrestricted Funds
Subject to approval by the Directors of this aide Memoire, the following Guidelines (‘Unrestricted Funds Guidelines’) will be published on the House’s Website and will be followed by the House in its award of charitable grants from unrestricted funds:
The House will normally consider applications for grants from the central administrative bodies of but not from individual units of:
(i) organisations providing care and assistance to groups of or concerned with disabled, elderly or terminally ill and the socially deprived;
(ii) organisations providing for the care, advancement and rehabilitation of youth;
(iii) universities, colleges of further education and schools;
(iv) organisations connected with the arts;
(v) organisations of which the Lord Dean of Guild is an honorary President or Vice-President or is another honorary office bearer, or on which the Merchants House is officially represented;
The House will not, normally, make grants:
(i) to individuals;
(ii) towards purposes or activity out with the geographical area designated by the Merchants House for grant support. The extent of the geographical area so designated is delineated on the map which can be found on the Merchants House website;
(iii) to charities, the objects of which are identical to those of the House (i.e. the award of benefits and/or grants to individuals or charities);
(iv) to charities to which a grant has been paid by the House in the two years preceding;
(v) to churches other than Glasgow Cathedral.
The Directors of the Merchants House reserve the right to decline any application for assistance without specifying any reason. The Directors decision on this is final.
(i) All applications must be submitted online via the Merchants House website
(ii) The Grants Committee of the House meets quarterly in early February, May, August and November and the deadlines for receipt of grant applications to be considered at these meetings are 31 December, 31 March, 30 June and 30 September respectively.
1.3 Governance, Control and Administration of Funds
All the unrestricted funds of the House are governed, controlled and administered directly by the Directors of the House.
The House’s grant making activities are delegated by the Directors generally to the Grants Committee or, in the case of three funds (viz the Stephen Bicentenary Trust Fund, the Commercial Travellers of Scotland Benevolent Fund for Widows and Orphans and the Corn Trades Fund) the Beneficiaries Committees.
Payment of Grants, other than any Grant in excess of £10,000, is made immediately following their award by the relevant committee and their award is reported to the Directors at the next following Quarterly Meeting. A Grant in excess of £10,000 can only be made with the prior approval of the Directors.
Endowment and Restricted/Designated Funds (Sections 2.1 and 2.2)
Except, currently, only to the extent mentioned below in respect of the Commercial Travellers, Glasgow Nursing and Medical Relief and The Inverclyde Funds, all of the named Funds are governed, controlled and administered directly by the Directors of the House or by the standing Grants and Beneficiaries Committees of the House (or, in the case of the George Craig Trust by the trustees of that trust) in all cases by virtue of the powers delegated to these Committees.
Historical Endowment Funds (Sections 2.1 and 2.3)
The Historical Endowment Funds form part of the unrestricted funds of the House and, as such, are governed, controlled and administered directly by House Directors or by the Grants and Beneficiaries Committees of the House by virtue of the powers delegated to it.
Endowment, Expendable Endowment, Restricted Funds and historical Funds
2.1 There are currently 18 named funds under the control of the House which are either endowment, expendable endowment and/or restricted funds. Details of these are given in Section 2.2. In the case of those funds which are denoted as being both endowment funds and restricted funds, the restricted part of the fund comprises the fund’s accumulated but undistributed income as at 31 December 2019.
In addition, there are pooled in the House’s Audited Accounts, the value of historical endowment funds, being either funds, the purposes of which have been extinguished or funds for which there are no remaining beneficiaries. The aggregate value of these funds as at 31 December 2019 was £3.5m and forms part of the unrestricted funds of the House. The Governance and Regulations of the House and the Unrestricted Funds Guidelines apply to these funds as they do to the other unrestricted funds of the House
2.2 Named Funds
Dr James Black’s Trust (Restricted Fund)
– small trust transferred to the house in 2012
– as at 31 December 2020, the value of the Fund was £27,191
– principally for retired domestic servants in Glasgow – but can be used for other purposes in accordance with the Unrestricted Funds Guidelines
– No disbursements were made in 2020
Buchanan and Ewing Bequests (Endowment Fund and Restricted Fund)
– established 1909
– as at 31 December 2020, the value of the Fund was (1) Endowment £177,044 (2) Restricted £9,109
– grants made specifically to education institutions to aid study
– grants are reviewed every five years
– the latest quinquennial review took place in August 2016
– No disbursements were made in 2020
Carol Richmond Trust (Endowment Fund and Unrestricted Designated Fund)
– the Funds were transferred to the House in 2006
– As at 31 December 2020, the value of the Fund was (1) Endowment £70,642 (2) Designated £1,618
– the income is applied for the benefit of Giffnock South Parish Church
– the House consults annually with David Richmond as to the amount and payment
– in 2020, £2,570 was distributed
Commercial Travellers of Scotland Benevolent Fund for Widows and Orphans (Endowment Fund and Restricted Fund)
– in 2009 the entire funds of the Commercial Travellers of Scotland Benevolent Fund for Widows and Orphans were transferred to the House on the understanding that the House would administer the funds in accordance with the objects of the Fund.
– As at 31 December 2020, the value of the Fund was (1) Endowment £168,040 (2) Restricted £9,039
– Note: The Fund has, in the past, received top up funding from The Leverhulme Trade Charities Trust. This is not expected to be repeated.
– currently 3 beneficiaries
– currently administered by the Beneficiaries Committee of the House
– In 2020, payments totalling £4,800 were made to these beneficiaries
George Craig’s Trust Fund (Endowment Fund and Restricted Fund)
– established in 1931
– as at 31 December 2020, the value of the Fund was (1) Endowment £411,366 (2) Restricted £3,404
– a Cy Pres Scheme (a scheme for amending the trust) was approved by the Court of Session in 1958. It conveyed the trust funds to the House, to be held in a separate account to be called “the George Craig’s Trust Fund”
– the Trust Deed (as amended) requires that the whole management of the Fund is to be in the hands of the Merchants House
– however, House Directors are entitled to appoint (and have appointed) an administrative committee (The George Craig Trust Committee), which may (and does currently) include people who are not Directors of the House. The George Craig Trust Committee reviews applications from students, carries out interviews and awards bursaries. Currently the George Craig Trust Committee comprises Karen Waugh (Chair) Alasdair Ronald, Ian Dickson, John MacLeod, May Storrie, Ruth Walker and Zoe Gillespie
– reports annually to Grants Committee
- Funds to be applied for following classes of beneficiaries:
(i) school children
(iii) intending post-graduates
applicants must have at least one Scottish parent and be between 10 and 30 years of age
– it receives a top up of 2/3 of the free annual revenue of The Morgan Mortification (see below) by virtue of the Grants Committee having agreed in August 2013 that 2/3 of the free annual revenue of the Morgan Mortification should be paid annually to the George Craig Trust Fund – this transfer was not carried out in 2019 as the George Craig Trust Fund has sufficient funds without the transfer
– in 2020 grants awarded by The George Craig Trust Committee totalled £22,575 ranging from £1,000 to £2,628
– these grants were given to assist in the education and training of 14 students
Glasgow Nursing and Medical Relief Association Fund (Endowment Fund and Restricted Fund)
– in 2006, the entire funds of The Glasgow Nursing and Medical Relief Association (a company limited by guarantee) (“the Company”) were transferred to the House
– As at 31 December 2020, the value of the Fund was (1) Endowment £627,318 and (2) Restricted £8,182
– in 2006 the House entered into a formal Undertaking that the House would administer the funds in accordance with the wishes of the directors of the Company as set out in the Undertaking
– funds are now managed by The Glasgow Nursing and Medical Relief Association Committee. The Undertaking required that the Committee (“the GNMRA Committee”) comprised not more than six members at any one time.
– the initial members of the GNMRA Committee were named in the Undertaking. They comprised:
(a) four named representatives of the Company (although two of the four were alternates for each other, so that only three Company representatives would be acting GNMRA Committee members at any time) and
(b) three named representatives of the House.
The Company representatives are a self-perpetuating cohort, having power to appoint their successors.
Power to appoint and remove the House representatives is given to the House.
– The Undertaking provides that the GNMRA Committee shall act by majority vote. In the case of an equality of votes, the matter in question is to be referred to the Lord Dean of Guild for determination. It is understood that no matter has, to date, been so referred.
– the annual income of the fund is to be distributed in accordance with the instructions of the GNMRA Committee with the overriding requirement that it can be utilised only for purposes that are in pursuance of, or compatible with or conducive to the attainment of the objects of the company as at 15 February 2006 (“Relevant Purposes”) The objects are set out in the Schedule to the Undertaking.
– Any part of the annual income of the fund not distributed by the GNMRA Committee in any financial year, is available for distribution by the House, but only for Relevant Purposes.
– in 2020, awards of £10,050 were made to certain medical and nursing-related charitable organisations in Glasgow and two retired members
Inverclyde Bequest Fund (Endowment Fund and Restricted Fund)
– regulated by a Private Act of 1906 entitled “An Act to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act 1899, relating to the Inverclyde Bequest”
– As at 31 December 2020, the value of the fund was (1) Endowment £1,733,439 (2) Restricted £52,308
– House to administer the Bequest for benefit of aged and infirm seamen belonging to the Mercantile Marine of the Commonwealth and the United States (“Seamen”) and their families in certain ways prescribed by the Act or such other ways as the Court of Session, on application, directs
– but having regard to the directions of Lord Inverclyde, viz:
- 2/5: Scotland
- 1/5: Liverpool, Manchester and surrounding districts
- 1/5: Belfast
- Lord Inverclyde also expressed the wish, in particular, that assistance should be given to deserving Seaman who are in distressed circumstances who have been in the service of the Cunard Company or G. & J. Burns.
– 1/5: New York and Boston.
– in respect of its Liverpool and Manchester and Belfast work, the Fund has until recently (and as permitted by the Act) operated through sub-committees in these areas. In 2016, however, the House took the decision to take these “in-house” and carry out the work itself. The sub – committees have been or are being wound up and the funds transferred to the House. Consideration is now being given as to the optimum way of carrying on the work including the identification and monitoring of beneficiaries.
– funds are distributed directly by the House itself to beneficiaries in Scotland and to Missions in New York/Boston
– income is allocated annually
– in 2020, £8,010 was distributed
Matthew B Campbell Trust (Restricted Fund)
– Funds received from the Trust in 2011
– As at 31 December 2020, the value of the Fund was £71,432
– 1/3 Paisley / 2/3 Glasgow and West of Scotland
– it is intended that the Fund be fully distributed within 10 years of its receipt by the House (i.e. by 2021)
– in 2020, £20,500 was distributed to charities
Morgan Mortification (Endowment Fund and Restricted Fund)
– established 1894
– As at 31 December 2020, the value of the Fund was (1) Endowment £488,565 (2) Restricted £14,129
– income distributed:
– 2/3 charitable objects and purposes of the House
– 1/3 Presbytery of Glasgow
– currently the House distributes 2/3 to the George Craig Trust (but that is not dictated by the Trust purposes – it does so to top up the George Craig Trust), although this distribution did not happen in 2019
– in 2020, no funds were distributed
RNVR Club (Scotland) Memorial Trust (Endowment Fund and Restricted Fund)
– in 2006 the entire funds of the Trust were transferred to the House on the understanding that the House would administer the funds in accordance with the objects of the Trust
– As at 31 December 2020, the value of the Fund was (1) Endowment £209,604 (2) Restricted £16,038
– the funds have been merged with the House’s Trustee Pool
– the fund finances young people aged 16-25 to take part in the The Ocean Youth Trust sailing trips
– In 2020, no funds were distributed
Stephen Bicentenary Trust (Endowment Fund and Restricted Fund)
– as at 31 December 2020, the value of the Fund was (1) Endowment £54,356 (2) Restricted £9,112
– the funds are paid out to individual beneficiaries and are administered by the Benefits Committee
– In 2020, no disbursements were made
– there are now no surviving beneficiaries for this fund- the funds will now become part of the unrestricted funds of the House.
The Benjamin MacKay Trust (Endowment Fund and Restricted Fund)
– funds received in 2013
– as at 31 December 2020, the value of the Fund was (1) Endowment £258,311 (2) Restricted £22,979
– House has undertaken to distribute at least 1/7 of annual income to charitable organisations within the Lenzie/Kirkintilloch area
– In 2020, no funds were distributed
The Bogles of Gilmorehill Bursary Fund (Endowment Fund and Restricted Fund)
– established 1992 by a gift of £50,000 from Ellen Bogle and Robert Bogle
– governed by a Deed of Trust dated 2 March 1992, under which the House was appointed as the Trustee
– Under the Deed of Trust, the income of the Fund is to be used to provide bursaries (to be known as ‘the Bogles of Gilmorehill Bursaries’) for students, either undergraduate or postgraduate, matriculated in the Arts-based Faculties at Glasgow University whose special financial needs are not met from public sources and whose circumstances otherwise merit payment out of the Fund. The nomination of recipients is at the complete discretion of the Principal of Glasgow University. On receipt of such nominations, a payment comprising the total of the bursaries is made by the House to the University, which, in turn, makes payment of the bursaries to the nominees.
– In the Deed of Trust, the Bogle siblings declared that it was their wish that a general inclination be indicated in favour of students from the Divinity and Social Science Faculties.
– as at 31 December 2020, the value of the Fund was (1) Endowment £112,725 (2) Restricted £40,986
– In 2020, no funds were distributed
The Keir Trust Fund (Restricted Fund)
– Trust originally set up by a Mrs Helen Potage who had a lifelong interest in the arts
– Trust funds transferred to the house in 2012
– As at 31 December 2020, the value of the Fund was £120,153
– Administered by the Grants Committee
– funds to be used for greater good, not paid as pensions
– in 2020, £2,000 was disbursed to assist in the education of school pupils and students in tertiary education
Ure Elder Trust Fund (Endowment Fund and Restricted Fund)
– A fund inspired by a pioneering 19th Century philanthropist to help Glasgow widows
– Trust funds transferred to the house in 2017
– As at 31 December 2020, the value of the Fund was (1) Endowment £248,030 (2) Restricted £12,030
– Administered by the Grants Committee
– in 2020, £2,700 was distributed
Underwood Fund (Restricted Fund)
– in 2013, the Trustees of the Underwood Trust donated £1m to the house
– that reflected their wish to set up a fund for the benefit of the deprived people of Glasgow and Paisley
– 50% Glasgow and its surrounding environs
– 50% Paisley and its environs
– As at 31 December 2020, the value of the Fund was £603,694
– in making the donation the Underwood Trustees expressed the belief that the purposes they had in mind for the fund could be met by donations to categories 1-3 of the house’s own Guidelines (see Section 1 above)
– payments should not be made to individuals
– capital and income to be distributed over a period of 10-15 years
– In 2020, awards of £72,316 were made to charities
2.3 Historical Endowment Funds
As at 31 December 2019, the value of these funds was £3.5m
The funds comprise individual funds where the original purpose of the fund has been extinguished or there are no remaining beneficiaries.
Under the terms of the endowments, the House is able to use the income as the Directors see fit.
15 July 2020