How to Start and Get Funding for Charity: A Helpful Guide

Exploring Funding Opportunities for Your Charity

Securing adequate funding is crucial for the sustainability and impact of your charity. Diverse funding streams can provide financial stability and support the delivery of your charitable activities. Below are various funding sources to consider:

Membership FeesIf appropriate, establish a membership program where supporters pay fees to access exclusive content, events, or services. This approach can build a community of loyal supporters who will spread the word.

Grants from Trusts and FoundationsNumerous charitable trusts and foundations offer grants to support specific projects or core operations. Research potential funders whose priorities align with your charity’s mission. For instance, the Esmée Fairbairn Foundation provides grants across various sectors, including the arts, children and young people, and the environment. esmeefairbairn.org.uk

Government FundingLocal and national government bodies offer funding programs for charities addressing community needs. The National Lottery Community Fund is a prominent source, supporting projects that improve communities and the lives of people within them. ncvo.org.uk

Corporate PartnershipsBuilding relationships with businesses can lead to sponsorships, donations, or in-kind support. Companies may offer funding through corporate social responsibility (CSR) initiatives, employee fundraising, or cause-related marketing. Approach businesses whose values align with your charity’s objectives.

Individual DonationsEncouraging donations from individuals remains a vital funding source. Implement strategies such as regular giving programs, one-time appeals, or crowdfunding campaigns. Gift Aid can enhance the value of donations by allowing charities to reclaim tax on eligible contributions.

Fundraising EventsOrganising events like charity runs, auctions, or galas can raise funds and increase awareness of your cause. Ensure compliance with relevant regulations and consider virtual events to reach a broader audience.

Social Enterprise ActivitiesGenerating income through trading activities related to your charity’s mission can provide unrestricted funds. Examples include operating a charity shop, offering training services, or selling products crafted by beneficiaries. Ensure that any trading activities comply with regulations governing charitable trading.

Legacy GivingEncouraging supporters to include your charity in their wills can secure long-term funding. Promote legacy giving through campaigns and provide clear information on how individuals can leave a bequest to your charity.

Accessing Free Resources and Support for Charities

Setting up and sustaining a charity can be financially demanding, but numerous free resources and expert assistance are available to help charities with funding, governance, and operational challenges without incurring additional costs. Leveraging these resources can significantly enhance your charity’s financial sustainability while reducing administrative burdens. Below are some of the best free tools and support networks available to UK charities.

1. Free Grant Search Databases

Finding the right funders is one of the biggest challenges charities face. Fortunately, several platforms provide free access to grant databases, allowing charities to explore potential funding opportunities.

• Funding Central (fundingcentral.org.uk) – A comprehensive resource for charities looking for grants, contracts, and loan finance. Provides tailored funding searches and alerts.
• GrantNav (grantnav.threesixtygiving.org) – A free, open-data platform that allows charities to explore grants given by UK funders and refine their funding search.
• The Directory of Social Change (DSC) (dsc.org.uk) – Offers a mix of free and paid resources, with useful funding guides and research on grant-making trusts.

Tip: Many local councils also offer funding directories for community projects and local initiatives, so check your local government’s website for additional opportunities.

Engaging with Funders and Networking: Building Lasting Relationships for Funding Success

Securing and maintaining funding for your charity isn’t just about submitting applications and writing grant proposals—it’s about building and sustaining relationships with funders. Charities that engage proactively with potential donors, grant-makers, and corporate sponsors are far more likely to secure long-term funding than those that rely solely on written applications. Here’s how you can engage with funders and expand your network to ensure continuous financial support.

1. The Power of Face-to-Face Engagement

While digital communication has made networking easier, nothing replaces the value of face-to-face engagement when building trust with potential funders. Meeting in person allows you to establish a genuine connection, convey the impact of your charity’s work with passion, and answer any concerns or queries funders may have in real-time.

• Attend Networking Events & Conferences: Major funding bodies, philanthropic organisations, and corporate CSR programs often host charity-focused networking events. Attending these can open doors to funding opportunities while allowing you to learn from other nonprofit leaders. Look out for events hosted by The Association of Charitable Foundations (ACF) or The Charity Finance Group (CFG).
• Request In-Person Meetings: Instead of sending a cold email, consider requesting a face-to-face meeting with key funders. Use these opportunities to showcase your work, present case studies, and discuss how their funding will be used.
• Invite Funders to See Your Work First-Hand: Hosting site visits or showcasing your projects in action can help funders feel connected to your mission. Seeing your impact in real time makes them more likely to invest in your cause.

2. Building and Maintaining a Strong Network

Engagement doesn’t stop once funding is secured – it’s essential to maintain and grow your network continuously. Funders appreciate long-term relationships with charities that communicate transparently, demonstrate good governance, and show how their money is being used effectively.

• Keep in Regular Contact: Funders want to see progress. Provide periodic updates via newsletters, impact reports, or personal updates, even when you’re not actively seeking funding.
• Acknowledge and Appreciate Contributions: A simple thank-you can go a long way in securing future funding. Recognising funders publicly (with their permission), inviting them to charity events, and keeping them involved builds loyalty.
• Leverage Existing Supporters: Current funders, donors, and corporate partners can introduce you to new funding opportunities. Ask them for referrals or introductions to their network.
• Engage on Social Media & Online Platforms: Many funders actively engage on platforms like LinkedIn. Sharing success stories, testimonials, and charity milestones can keep your organisation on their radar.

3. Collaborating with Other Charities and Organisations

Networking isn’t just about funders—it’s also about forming strategic partnerships with other nonprofits, community organisations, and corporate sponsors. Collaborating with well-established charities can increase credibility and provide access to shared funding opportunities.

• Join Charity Networks and Membership Groups: Becoming a member of organisations like NCVO (National Council for Voluntary Organisations) or Localgiving can introduce you to funding networks.
• Partner with Businesses for CSR Funding: Many businesses have Corporate Social Responsibility (CSR) initiatives and are looking for nonprofits to support. Engaging with them at industry events or reaching out directly can unlock sponsorships or grant opportunities.
• Consider Co-Funding Opportunities: Some grants require charities to work together on larger initiatives. Partnering with another organisation can increase your funding potential and expand your reach.

4. The Long-Term Benefits of Relationship-Based Fundraising

By actively engaging with funders and maintaining a strong network, your charity can reduce reliance on short-term funding and build a more sustainable financial model. When funders see your commitment, transparency, and impact, they are more likely to renew funding, introduce you to new sources of finance, and champion your cause within their own networks.

Final Tip: Whether you’re seeking grants, corporate sponsorships, or major donations, the key to successful funding is relationship-building. Investing time in face-to-face engagement and networking strategically will position your charity as a trustworthy and impactful organisation – ensuring long-term financial sustainability.

Is Setting Up a Charity Right for Your Cause?

Before proceeding, assess whether establishing a new charity is the most effective way to achieve your goals. Consider existing organisations that may already address similar issues; collaborating with them could amplify your impact without the administrative responsibilities of starting anew. The National Council for Voluntary Organisations (NCVO) offers guidance to help you decide if setting up a new charity is the right path.

ncvo.org.uk

Understanding the Parameters of Your Charity

Clearly defining your charity’s scope, target beneficiaries, and intended impact is crucial. This clarity will guide your strategic planning, governance, and funding approaches. Resources like Charity Digital provide comprehensive insights into setting up a charity, outlining key considerations at each step.

charitydigital.org.uk

Conclusion

Establishing a charity in the UK involves careful planning, adherence to legal requirements, and a strategic approach to funding. By following the outlined steps and exploring diverse funding sources, you can create a sustainable organisation poised to make a meaningful difference. Remember, numerous resources and professional advisors are available to assist you throughout this journey.

Partner with Charity Accounting Partners for Expert Guidance

Embarking on the journey of establishing and funding a charity can be complex. At Charity Accounting Partners, we specialise in providing tailored accounting and financial support to help your organisation succeed. Our experienced team is ready to assist you with compliance, financial planning, and strategic advice, ensuring your charity thrives in its mission.

Get in Touch Today

For more information on our services or any general inquiries, please reach out to us. You can contact us through our website’s contact form or via email at support@charityaccountingpartners.co.uk.