A trust is a fiduciary relationship whereby a person or persons (trustees) holds and manages property for the benefit of one or more others (beneficiaries). Fiduciary means 'in good faith' or 'in trust' so trustees have to act in the interests of the trust. A trust's purposes and rules are set out in its governing documents.
There are numerous sources of funding available but it is important to know where to look and how best to approach the funders. Establishing which options are right for your organisation is an important first step.
Given the precarious economic climate which we find ourselves in, it is more important than ever to make sure that resources are used effectively. This includes approaching the most suitable funders and meeting best practice when asking for funding.
Code of Fundraising Practice and Guidance
The Institute'sGrant Making Trusts section of the Code and guidance provide best practice guidance and highlights issues to be considered when applying to trusts.
The Code of Fundraising Practice sets out the law and best practice for a range of fundraising techniques.
Other Institute Resources
The Institute has also created a briefing on How to Structure an Application to a Trust. This briefing is to provide ideas and guidance around how to structure an application if they do not have a preferred application format.
The Institute has a number of Special Interest Groups run by volunteers who are expert in specific areas of fundraising. Of particular note for this type of fundraising are the Trusts and Statutory and also the Scottish Trusts, Statutory and Foundations Groups.
Different Forms of Funding
There are a number of different forms of funding and different resources available to the sector. Some brief information and helpful links are listed below:
Statutory and Government Funding
Statutory funding accounts for £12.8billion or 36% of UK charity income (NCVO Civil Society Almanac 2010). These sources of funding usually have very strict criteria and elligibility to funding varies enormously across the many sources available.
The Office for Civil Society located in the Cabinet Office oversees the role of the voluntary sector and also have some responsibility for statutory funding programmes. However, other government departments have funding that may support the work of fundraising organisations.
The main central funders are:
- Home Office
- Department for Children, Schools and Families
- Department for International Development
- Department for Communities and Local Government
- Department of Health
Other government departments and Local Authorities also have funding from time to time that might be available to support charities. The Government Funding web site lists grant opportunities across Government.
For more information throughout the UK you can check the Scottish Government, Welsh Assembly Government and Northern Ireland Assembly websites.
There are a variety of funding programmes and initiatives available from European sources.
The European Social Fund web site and the Secretariat General section of the European Commission's site are good places to start your research.
The European Fundraising Association is a network of fundraising associations throughout Europe. If you are looking for funding in a particular country within Europe you may find it helpful to contact the relevant association.
28 pence of each £1 lottery ticket goes to good causes in the UK. National Lottery funding is available through several lottery money distributors. This amounts to around £500million annually (NCVO Civil Society Almanac 2010).
The Lottery Funding web site provides information on and links to all of the different Lottery funders via the Lottery funders listing.
Some of the major lottery funders are listed below.
The Big Lottery Fund
The Big Lottery Fund distributes half of the funds that the National Lottery raises for good causes and currently has a abudget of around £630 million a year.
The Big Lottery Fund gives grants to projects that improve health, education and the environment and support voluntary groups, helping those most in need.
Awards for All
Awards for All is aimed at not-for-profit organisations and funds projects that bring together people to take part in community activities. Grants range in size from £300 to £10,000.
Heritage Lottery Fund
The Heritage Lottery Fund helps organisations of all sizes to conserve and enhance the UK's heritage and make sure that everyone can enjoy it.
The Arts Councils of England, Wales, Scotland and Northern Ireland provide grants for art projects within each country.
The Lottery funders listing provides links to organisations funding sports initiatives.
The Institute of Fundraising is not a grant-making body but there are a variety of places that you can look for funding. Some of the key information sources are listed below.
- Funding Central is a website managed by NCVO and funded by the Office for Civil Society, part of the Cabinet Office in England and Wales, which allows you to search for grants, contracts and loans.
- Contact your local voluntary service council as they may be able to help you find funding. A list is available from the National Association for Voluntary and Community Action.
- Guidestar is a charity search engine that enables you to search via beneficiaries and geographical area. You can also obtain a list of grant makers.
- Grants for Individuals provides information on grants for individuals.
- Trust Funding lists grant-making trusts.
- The Association of Charitable Foundations lists grantmaking trusts.
- A Directory of Grantmaking Trusts is available from the Directory of Social Change but may also be available in the reference section of your public library.
- The Charities Information Bureau is another source but it does charge for its services.