The Community Fund was expected to approve its controversial grant to the National Coalition of Anti-Deportation Campaigns this week but with certain conditions attached.
As Third Sector went to press, the fund's board was due to consider a report from the internal inquiry team which investigated the handling of the grant.
The team put forward a series of options to resolve the issue. The "most favoured" option was to confirm the £340,000 grant but on the condition that the organisation remove inflammatory statements from its web site. But the board could opt to seek "further opinions" from legal sources.
The fund has also decided to rigorously enforce Charity Commission rules on political campaigning, which stipulate that charities cannot support political parties and their entire purpose cannot be political. The fund has used Commission rules as a guide in the past, but admitted it had been applied "rather gently".