Community and Charity Funding in the UK

The National Lottery Community Fund is the largest funder of community activity in the UK, distributing money raised by the National Lottery to health, education, environment, and charitable causes. Its main programmes include:

• Awards for All — Small grants of £300 to £20,000 for community groups, voluntary organisations, schools, and statutory bodies. The programme is open year-round and has a straightforward online application process. Projects must benefit the local community and deliver at least one of the fund's outcomes.
• Reaching Communities — Larger grants up to £500,000 over five years for organisations making a bigger difference to communities facing significant disadvantage.
• Community Partnership — For organisations working together to deliver complex, longer-term change in communities.

The Fund has separate offices for England, Scotland, Wales, and Northern Ireland, each with slightly different programmes. Start on the NLCF website and use the funding finder to identify the right programme for your project.

Hundreds of private charitable foundations in the UK make grants to community organisations, often with specific geographic, thematic, or beneficiary focuses. Researching the right foundations for your work is essential, as applications to unsuitable funders waste everyone's time.

Key sources for finding charitable trusts and foundations include the Directory of Social Change (DSC), which publishes guides to UK grant-making trusts, and the Foundation for Social Improvement (FSI), which provides training and resources for small charities. Some larger foundations such as the Joseph Rowntree Foundation, the Esmée Fairbairn Foundation, and the Lloyds Bank Foundation publish open grant programmes with clear application guidance on their websites.

When researching foundations, look for their most recent trustees' annual report and accounts (available on the Charity Commission website). These show recent grants made, which is the best guide to whether your project might fit their priorities. Many foundations will accept an initial enquiry letter or expression of interest before a full application.

Several central government programmes fund community activity directly. Current relevant programmes include:

• Community Ownership Fund — Provides match-funding of up to £1 million to help communities in England, Scotland, Wales, and Northern Ireland buy or take over local assets such as pubs, sports facilities, post offices, and cinemas that are at risk of closure.
• Dormant Assets Scheme — Distributes money from dormant bank accounts and other financial assets to social and environmental causes via Access (the Foundation for Social Investment), Big Society Capital, and the National Lottery Community Fund.
• UKSPF communities and place priority — Local authorities can use UKSPF funding to support community facilities, community safety, culture and heritage, and voluntary sector capacity. Check what is available in your local area.

For charities specifically, HMRC offers Gift Aid which allows registered charities to reclaim 25p for every £1 donated by UK taxpayers. This effectively increases the value of donations by 25% and should be claimed on all eligible donations.

Most community and charity funders require applicant organisations to meet certain basic criteria before considering their applications. Common requirements include:

• Constituted organisation — Most funders require you to have a formal governance structure, such as a written constitution, trust deed, or memorandum and articles of association. Informal groups may need to formally constitute before applying.
• Bank account in the organisation's name — Most funders will not pay grants into a personal account.
• Charity registration — Larger funders typically require Charity Commission registration (in England and Wales), OSCR registration (in Scotland), or CCNI registration (in Northern Ireland). The registration threshold is £5,000 annual income in England and Wales.
• Safeguarding policy — Any organisation working with children or vulnerable adults must have an up-to-date safeguarding policy.
• Equal opportunities policy — Most funders require evidence that your organisation promotes equality and does not discriminate.

If your organisation does not yet meet these requirements, many local infrastructure organisations (councils for voluntary service or CVSs) can help you develop the necessary policies and governance structures.