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Fundraising and expanding your income

Why do we need funding? 


Core funding: operating costs such as salaries, rent, utility bills etc.

Project funding: for a specific project or activity, costs such as staff (inc freelance), travel, materials, refreshments etc.

Capital funding: for physical assets such as constructing or renovating of buildings, purchasing of land or a vehicle, improving IT.


Who can apply for funding?

Educational organisations, local authorities, businesses, individuals can all potentially apply for funding. But we will focus on Community Organisations and/or Non-Profit Organisations, these are usually


Registered charities: organisations whose aims and activities are exclusively for the benefit the community and/or public,

Community Interest Companies (CICs): businesses which trades for the benefit of the community"

Constituted community groups: groups that have a a formal written constitution dictating its aims and activities

Social enterprises: organisations that aim to generate the majority of their income from trading and invest profits to address issues social or environmental issues

Faith-based organisations (for community benefit projects): Faith based organisations adressing issues within their communities.

Who are the Funders?


There are thousands of grant-making trusts, from small regional to national funders. Some of the most prominent funders are: 


National Lottery Funders

  • The National Lottery Community Fund: community projects, wellbeing and environmental.
  • Arts Council England: arts, culture, and creative projects.
  • Sport England: physical activity and sports participation.
  • Heritage Fund: heritage, conservation, and historic sites.
  • British Film Institute (BFI): film and media funding.

Charitable Trusts & Foundations

Independent organisations that give grants to charities, social enterprises, including (these are just a few examples):

  • Esmée Fairbairn Foundation: arts, social justice and environmental issues
  • Garfield Weston Foundation: supporting charities
  • Henry Smith Charity: challenging poverty and supporting communities
  • Joseph Rowntree Charitable Trust: social justice
  • Paul Hamlyn Foundation: arts, education and advancing social change.
  • Tudor Trustadvance racial justice
  • Wolfson Foundation: education, heritage, science,

Government Funders

National Government, such as:


  • Department for Business and Trade: business support, innovation, and export grants.
  • Department for Culture, Media and Sport: arts, sports, and heritage.
  • Department for Education: education, training, and skills development.
  • Home Office: community safety and crime prevention


Local Government:

  • Local Authorities and Councils often provide community grants.

Corporate and Bank Funders

Many companies have corporate social responsibility (CSR), social value or charitable foundations, such as:

  • Asda Foundation
  • Aviva Community Fund
  • Barclays Community Finance
  • Co-operative Bank Community Fund
  • Lloyds Bank Foundation
  • Santander Foundation
  • Tesco Community Grants

What do I need to do to access funding?


Find the right funder - Always check the Eligibility Criteria and read the guidance.


You will be required to demonstrate the: 


  • Need: what is the need in your community. For example, older people experiencing isolation, children’s health issues, lack of access to IT etc.
  • Aims: What it is that you’re aiming to do. For example, to improve young people’s health & wellbeing.
  • Outputs: the number of people that you’re engaging.
  • Outcomes: are the changes or benefits that have occurred because of your project. It demonstrates what difference your project has made. For example, 20 young people improved self-confidence after participating in sports classes.


Outcomes need to be SMART.


Specific: Host weekly IT sessions for 20 older people aged 66+ in the Ardwick area.

Measurable: 60% of participants will improve their IT skills by the end of the project.

Achievable: The goal should be realistic, considering the time, resources, budget. (We are training 20 participants in 3 months not 200.)

Relevant: It should align with your organisation’s purpose and the funder’s aims.

Time Specific: Include a timeline for achieving your outcomes. By Dec 2026, 20 older people will have improved their IT skills.


Budget

How much will it cost you? Be realistic and do your research. For example, a Fitness Trainer @ £150/session for 10 sessions, travel for participants 10 day-rider tickets @ £5 each, Teas & coffees £25 etc.


Evaluation

Allows you to assess how successful your project was or wasn’t by collecting information, analysing it, and learning from it. Evaluation allows you to


Measure success: Did you achieve your aims and outcomes?

Demonstrate impact: Show the funder and/or your community the difference you made.

Learn: What you can do better on the next project.


How do you evaluate?


Always start evaluating at the beginning of a project. You can do it via


  • Surveys or questionnaires (before and after the project, then compare)
  • Interviews
  • Focus groups
  • Observation (watching the project in action)
  • Case studies
  • Analysis (Explore registers, feedback forms etc)




You will be asked to write about what you intend to do. If there is a word count, that will dictate the level of detail the funder is expecting. For example, if it says maximum of 2000 words and you’ve written 150, you’ll need to provide more information.


When writing your application, remember to make it clear. Ask someone else to read it before you submit. The person who works for the funder is unlikely to know anything about your organisation or your project. If they’re struggling to make sense of it, you’re unlikely to be successful.


Documents


A funder may request documents, such as:


  • Annual accounts
  • Annual report
  • Governing document.
  • Recent bank statement
  • Safeguarding policies
  • Insurance


When you’re writing a funding application, you need to demonstrate the need in your community and why and how your project can help those in need. Funders want to know that their money, going to your organisation, can make a difference.