Summary of key points

EXPERT GUIDE

Establish whether you are bidding for a grant or tendering for a contract before you begin – the terms are different
Ensure that you incorporate discussions of the timing of payments into your negotiations at the outset
Even if you are taking part in a tendering process, you may still be able to ask for advance payment – it is normal practice for smaller voluntary organisations to receive this.
You may have an element of funding that is performance-related – you have to decide whether this is an appropriate amount which you can earn by delivery quality outputs
If you are receiving funding in advance, then it should not be a problem if you carry forward a reasonable amount at the end of the financial year
Contracts for services should not incorporate any clawbacks. It may be appropriate for some grants, depending on the purpose of the funding.
Fixed assets such as buildings that have been funded by grant may be subject to clawback for a period of time.
Reporting and auditing requirements should be proportionate.

http://www.financehub.org.uk/grants_and_donations/termsoffundingfromgovernmentbodies/summaryofkeypoints.aspa