Funding from Foundations and Trusts
Who Are They?
There are about 7,500 grant-making trusts and foundations in the UK, giving a total of approx ₤2 billion in grants each year to charities. Trusts' total giving to charities is about the same as the total of grants given to charities by the UK government. Most trusts and foundations derive their income from an endowment, i.e. a capital sum given to them by a rich individual, family or company. The endowment may take the form of cash, stocks, shares, or land. It provides a tax-exempt income which funds their grant-giving. Some trusts and foundations receive their income from other sources: e.g. gifts from a company's current profits, or a regular appeal on TV and radio. Some trusts act as a broker for donors and collectors of endowment, either in a local area (a community trust) or in a specialist field (an intermediary trust).
Who Can Apply?
Trust income comes from an endowment i.e. an individual, family or company. The interest made is given out in grants. No tax is paid to the government but in return, trusts can only fund charitable causes. Consequently, they often only give to or via a registered charity or to organisations which are accepted as charitable e.g. churches.
What Do They Fund?
Trusts and foundations like to fund what government does not fund:
- New methods of tackling problems;
- Disadvantaged and minority groups that face barriers in accessing services, or which
- have inadequate access to services;
- Responses to new or newly discovered needs and problems;
- Work which is hard to finance through conventional fundraising;
- One-off purchases or projects;
- Short and medium-term work which is likely to bring a long-term benefit and/or to attract
- long-term funding from elsewhere.
About 70 per cent of trusts and foundations give in the health and social welfare fields. 30 per cent give to the arts and recreation and 9 per cent give to causes related to religion. About 7 per cent of their funds are given internationally.
They might fund a slide for a playgroup or fund a 3 year project to deal with drug addiction amongst young people.
Pros:
- Simple procedures
- Flexible about what they can fund
- Wide range of interests
- Often prepared to fund something new and untried
- Often prepared to fund more unpopular causes
Cons:
- Few give large grants (tends to be ₤100s rather than ₤1000s). Most are too small to fund salaries
- Need research
- Many don't meet more than twice a year, so the process can be slow
- Those that do make large grants are interested in setting-up costs, not long-term running costs
How Do You Apply?
Usually in writing. Find out what they require from you. Some require in depth information.
There is information below about how to find trusts that might fund you.
How Much?
Usually small amounts, although there are some larger trusts that provide funding for more than one year.
Further Information:
To find trusts
Major trusts have their own websites. To find these look at Association of Charitable Foundations website: http://www.acf.org.uk/ or Charities Direct website: http://www.charitiesdirect.com/
To find local trusts near to you, contact your local CVS - England, Wales, Scotland, Northern Ireland, or local council. Libraries may also be able to help.
Local community web-pages often have this information.
Use Google http://www.google.co.uk to find them. Ensure you find the appropriate site and not one with a similar name in another part of the world.
DSC (Directory of Social Change) provides searchable databases online. There is a free database of Government Funding which covers most Government departments that fund the Voluntary and Community Sector www.governmentfunding.org.uk There is information and a subscription service to a searchable database of ongoing funding from Trusts and Foundations at www.trustfunding.org.uk
Grantfinder provides a comprehensive searchable database to subscribers which includes all funding for Local Authorities and business as well as the voluntary and community sector. This expensive service is of limited use to the public, but your Local Authority may subscribe and have access to this database. Look at website www.grantfinder.co.uk for further information.
Newsletters of updates and short term offers of funding
At times, trusts' and foundations' circumstances change. They may change their guidelines of who they can fund. They may have more (or less) in their budget. Often they will respond to change by introducing short term funding opportunities with strict deadlines.
News of changes and short term funding offers can be found in fit4funding newsletters
Sign up for a free sample from the right hand icon.
Grants Online provide subscription services including the latest funding opportunities at website www.grantsonline.org.uk
Profunding offer subscription services of the latest funding information for the Voluntary and Community Sector at www.fundinginformation.org . This service is comprehensive and particularly useful for professional fundraisers and those giving funding advice. They also provide a low cost basic service for community groups.
Remember to compare services before paying any substantial fee. You should be able to gain a free trial to see what you are getting (as with The fit4funding newsletter above). Phone and ask if they do not offer this on their website.
Before parting with subscription fees check whether the service you want to access is available at your local CVS or elsewhere locally.
Books
Directory of Grant-making Trusts
This comprehensive reference work covers 2,500 grant-making trusts. Updated every couple of years. There is also an on line version.
Some Funding Sources for you to consider
Adventure Capital Fund
Offers community-based organisations several types of investment concentrating efforts on more disadvantaged neighbourhoods. They aim to help organisations become stronger and more self-sufficient through enterprise so they can become more self-sustainable and less grant-reliant. They provide access to finance, mentoring & support services.
Contact: Adventure Capital Fund (ACF), 1st Floor, Derbyshire House, St. Chad's Street, London, WC1H 8AG
Email: info@adventurecapitalfund.org.uk Tel: 020 7842 7760 Fax: 020 7842 7761 Website: www.adventurecapitalfund.org.uk
Esmee Fairbairn Charitable Trust
The Trust has a Finance Fund This aims to complement the Foundation’s grant-making with loans and other investments to charities and social enterprises in our areas of interest. By providing money in this way, the Foundation will share the risk and return of the investment. As part of the return on our investment, the Foundation hopes to help prove a new model for funding the sector: increasing its capacity, building balance sheets and proving that our funding can be recycled.
King's Place, 90, York Way, London, N1 9AG Tel: 020 7812 3700 Website: www.esmeefairbairn.org.uk
The Prince's Trust
The Prince's Trust provides a range of services for young people aged 14-30. Small grants are available to support education, training or employment. For those looking at setting up a business, loans & grants are also available, together with ongoing business support, specialist advice and access to a business mentor.
Regional information available at
UnLtd
UnLtd is a charity which supports social entrepreneurs. It provides packages of funding and support to help individuals make ideas into reality.They provide Award Winners with everything they need to ensure their projects are successful, from training and project shaping meetings to Award days.
Level 1 Awards between £500 and £5,000. Level 2 Awards can be up to £15,000
Contact: 123 Whitecross Street, London EC1Y 8JJ. Tel 0207 566 1100 Email: info@unltd.org.uk
Website: www.unltd.org.uk
