Frequently Asked Questions: Transform Stage two

Should I solely include costs relating to the Transform Stage two project in my cashflow and budget documents?

We’ve asked that you submit information using the templates provided to you as part of your 2023-26 Investment Programme offer. Within these templates, we would like to see the impact the Transform Stage two grant and project has on your wider 2023-26 Investment Programme grant and organisation’s operations. You should show us the specific costs you expect to incur delivering your Transform Stage two project and how this sits within your wider cashflow management.

Additionally, some operating costs (where the use of Arts Council funding is time limited) are eligible for support through this programme. It is expected that the financial information you submit to us shows the ongoing operating costs and how your organisation plans to manage these.

Should this programme only be used by organisations who have received significant reductions?

Any of the 29 organisations that have received reduced offers is eligible to apply, regardless of the scale of the reduction to their 2023-26 Investment Programme grant. The main focus of this programme is facilitating organisations to implement significant changes to their business so that they are able to improve their financial resilience and can operate sustainably on reduced levels of Arts Council funding. Organisations need to demonstrate clear financial need within their applications – we will only offer funding in circumstances where there’s clear evidence organisations cannot cover the costs themselves (for example, unrestricted reserves).

Are costs related to capital/building work eligible?

Yes, in the context of improving your sustainability and financial resilience. You can apply for costs that would cover asset purchase or potential refurbishment of existing spaces where you can demonstrate those capital improvements will improve the financial resilience of your organisation

Is it possible to apply for costs relating to a new fundraising team, or a new fundraising approach?

Overall, Transform Stage two is designed to support significant structural change to your business and the way you operate. If you are seeking Transform investment simply to strengthen an existing funding operation – with no significant

structural change to your organisation – you are unlikely to be successful. If, however, you can demonstrate that your use Transform investment to develop a new approach to income generation and fundraising (especially if it is tied to other structural changes in your business), then this will increase your chances of success.

How should I split my request? Should I apply for 50% operating costs and 50% remodelling costs?

The short answer to this is no. The maximum limits we have set out in the guidance are just that, a limit rather than an expectation. We do not expect organisations to apply to us for that maximum figure, and instead we are expecting organisations to apply for the shortfall in income needed to complete their business change.

At Stage one, you referenced operating costs tapering 75/50/25% across each year of the grant, though this isn’t mentioned in Stage two guidance – should we still do this?

We have moved away from the 75/50/25% referenced in the Stage one guidance. There’s now no Arts Council expectation or requirement for how you should spread the Transform Stage two funding across the funded period, beyond expecting Transform support for your operating costs will reduce over the period. More specifically, we will look at how you plan to manage costs and meet cashflow demands, while implementing changes to how you operate.

How can I edit the financial templates?

You can edit the cashflow template by adding additional lines. To do this, click Review then Unprotect sheet. You should then be able to make changes and add information as necessary.

The budget template is not editable, however if there are any specific costs you’d like to highlight then you should mention them within the narrative plan.

There are separate attachment hooks for the cashflow and budget forecasts on Grantium – should I upload the same attachment twice?

The financial templates are handily included on one attachment, and it’s not necessary to split them up or upload them twice. You can upload to one of the attachment hooks for either the budget or cashflow, and you will be able to submit your application.