What is a Contributing Third Party Payment?

Under the Landfill Communities Fund (LCF) and Scottish Landfill Communities Fund (SLCF), FCC Environment can donate a small percentage of the landfill tax they collect to us to fund suitable projects. Of this the Government allows FCC Environment to reclaim some, but, not all, as a tax credit. In addition the schemes’ regulators charge a levy and there is a cost associated with administering the funds.

In order to reduce the losses incurred by participating in the Scheme, FCC Environment (as a condition of providing the landfill tax money) requires project applicants to secure the help of eligible ‘Contributing Third Party (CTP) payments’ to make up this shortfall. This equates to 10.75% of the funding provided to each successful project.

This funding cannot come from LCF or SLCF monies and must be raised from other sources. Funding is paid directly to FCC Environment and only covers the shortfall they suffer by participating in the scheme.

To work out the amount of CTP funding you need to find multiply your application amount by 10.75%.

Please note CTP is different from match funding towards your project.

When is the Contributing Third Party payment due?

For successful projects, the request for payment of the CTP is sent to your contributing third party within 7 days of the Board decision. Payment is required within 28 days of the request to secure the grant offer.

Who can be a Contributing Third Party donor?

The key consideration regarding CTP is the term ‘Unique Benefit’. Simply, a CTP donor cannot gain any unique benefit from the project put forward for funding. Examples of organisations which can be CTP donors are:

• Private Companies
• Public sector organisations- Local Authorities, County Councils
• Charities
• Private Donor. For example, a member of a church congregation or a person who uses with others a village hall or other community facility.

Who cannot be a Contributing Third Party donor?

As detailed previously, organisations / individuals gaining a unique benefit from a project cannot be a CTP donor. Specific examples are:

• Any individual or organisation, which is directly connected with the landfill operator, FCC Communities Foundation, or a contractor of the project
• An Environmental Body (relevant to projects in England only)

Please note

The CTP transaction, while facilitated by FCC Communities Foundation, is a transaction outside our project funding. The payment is made directly from the CTP donor to the Landfill Operator, FCC Environment.

The CTP must not be included as a project cost nor as other funding on your application.

You must have identified your project’s CTP donor before you apply for funding and you must provide written confirmation that they are willing to provide the contribution if your applications is successful. There is a specific question on the application form where you will be asked to confirm details.