Harriet Stranks

Head of Grant Making - North

Supporting core costs for

small and medium-sized

charities:

what can we learn?

Setting the Scene

- About the Foundation -

A leading community grant maker

• A registered charity

• Over £300m invested in more than 42,000 charities

• Independently run

• Income deeded from Lloyds Banking Group (£25m in 2012)

Our focus – people

• Poor life

choices/chances

• Social

exclusion/isolation

• Helping people be heard

• Chaotic lives

Our focus is on lasting change

• Support for charities

that deliver lasting

changes for

individuals and/or

communities

• Charities must show

tangible changes for

users

Consistent support across

England and Wales

• In 2011, the Foundation

invested £21 million across

England and Wales

• 97% of local authorities

• 50% of our funding is invested

in the top 20% deprived areas

70% for core costs such as

salaries, rent and utilities

Our funding programmes

Community Programme

• Focuses on core funding that helps disadvantaged people to play a fuller role in the community

• Rolling programme

• Charities must have reserves of 12 months or less

• With an income of £1m or less if you work locally or regionally or £5m or less if you work nationally

Issue based Programmes

• Funding for charities with specific track record and expertise in the nominated area

• Time limited programme

• No upper income limit for charities that are eligible

• Previous themes have been the work in criminal justice system and older people living in financial difficulty

Our commitment to core costs

• In the last three years,

we invested £56.8m in

core costs and

showed it made a

difference to

beneficiaries / users &

also created added

value to the charities

Our commitment to core costs

What do we look for?

• Good governance

• Good planning

• Being able to articulate and demonstrate the difference your work makes to your beneficiaries

What do we look for?

• Good support for

staff and volunteer

development

• Finances – well run

day to day finances,

return of documents

to the charity

commission

Before you contact us

• Do your homework and plan a proper timetable

• Be clear about what you’re seeking funding for

• Does your funding need fit with our funding criteria and priorities. Not all funders are the right funder for everyone.

Tips to help your application

• Be realistic in what you ask

for

• Build an evidence base –

we’ll want to see how you

monitor the changes and

benefits experienced by

users

• Ask someone to check

your application before you

send it

How do we support your work?

• From initial request

• Online eligibility questionnaire

• Early identification of suitability for funding

• Advice on other sources of funding

• During the application process

• Chance to articulate and show the difference your

work makes at assessment meeting

• Application only advised once assessed and fits

guidelines

The value of core funding

Investing in core costs does

make a difference

• Supports

development of

basic skills

especially around

transition

• Supports the basic

‘building blocks’ of

communities

Investing in core costs does

make a difference

• Supports local

jobs/volunteering

opportunities

often the first step

towards

employment

Investing in core costs does

make a difference

• But it is modest in

terms of numbers

• Has little effect on

national/regional

policy

• Need to be clear on

choice of

organisation

More detailed results

Making a difference to those

most in need

Key benefits

include: • improving basic skills such

as numeracy and literacy

• reducing isolation

• improving access to support

networks

• improving confidence and

self-esteem

Making a difference - Improving life choices and chances

• Over 85% helped to improve

the life choices and chances

of those most vulnerable in

society

– offering skills development

around times of transition,

providing access to advice

services and undertaking

activities which lead to

improved well being and

confidence

Making a difference - Improving social and community engagement -

• Improved social and

community engagement was

achieved through the work

of 84% of charities

supported

– reducing isolation by

providing community hubs,

access to support networks

and breaking down

language barriers to enable

beneficiaries to engage

socially

Making a difference - Helping people be heard -

• A third of charities were able

to demonstrate core work

had helped vulnerable

beneficiaries, particularly

those with learn disabilities

and mental illness, to gain ‘a

voice’

– enabling them to gain

confidence, skills and have

access to the tools to

speak out and make

informed decisions about

their life choices

Making a difference - Access to advice and support networks -

• Over a third provided

access to advice

services for their

beneficiaries

• Over half had provided

access to support

networks

Making a difference - Improving basic skills and self-esteem -

• 44% improved the basic

skills of their

beneficiaries such as

numeracy and literacy

• A further 47%

demonstrated improved

confidence and self-

esteem for those

supported

We believe investing in core

costs does make a difference

• It doesn't produce a major ‘step change’ in

social policy but it does make a real

difference to individuals and communities

most marginalised in society at a time of real

economic hardship

• In 2013-2014 ,we plan to continue to support

this type of work

The Impact of the current

economic climate

Our 2011 Funding Survey

• Over 650 charities responded

• Conducted in September/October

• Income from less than 10K to £5m (42% between

£101 - £300k)

• Split across all areas of disadvantage

• Geographical spread throughout England and Wales

Our 2011 Funding Survey

• 70% of respondents are currently in receipt of a

grant from the Foundation and 27% have received

funding in the past

• 61% of the charities surveyed focus their work

locally

• 21% focus their work regionally

• 10% solely in England, 4% in Wales and 4% in both

England and Wales

It is tough and getting tougher

• 91% (70% in 2009) believe funding

will be harder to secure in 2012

• 85% (80% in 2009) have seen

demand for services increase

almost half are unable to meet this

• Less than a quarter of small

charities (40% in 2009) believe

they are in a strong funding

position

More volunteers but...

• Over half have

seen interest in

volunteering rise –

over a quarter can’t

cope with the

demand

Struggling to Meet Demand

• 85% have seen an increase in demand for their services,

with a third experiencing a significant rise of over 25%

• Nearly half (44%) of those surveyed say they are now

unable to meet this extra demand

• 56% of charities have seen interest in volunteering

opportunities increase, with medium sized charities with

incomes of £101 - £300k experiencing the greatest level

of interest

• 28% are unable to meet this demand

A Lack of Support

• Strong concern

amongst charities

that there is a lack of

adequate support

from both central

and local

Government

Securing Funding

• Charities with incomes of £301 -

£500k struggled most to secure

new funding with less than a

quarter (24%) experiencing a

rise in income during 2011

• This compares with 39% of

charities with incomes between

£501 - £1m, and 27% with

incomes between £101k - £300k

Securing Funding

• 60% of charities with incomes

of £1m or less saw a decrease

in the level of income

received during the year, with

nearly a third reporting a

significant decrease

• 91% believe it will be even

harder to secure funding this

year

The Need for Core Funding

• 88% of community based charities in England and

Wales say they need core funding to support core

costs and organisations more than any other type of

financial assistance

• 89% found it significantly harder to secure support

for this type of funding over the last 12 months

• 91% believe it will be even harder to secure core

funds in 2012, with 60% thinking it will be

significantly harder to secure

What support is needed?

• 35%(no change to 2009)

said that fundraising

support would be most

useful to help become

more sustainable

• 18%(23%) would like

support to raise their

profile

• 13% (no change) would

like assistance with

business planning

It is not all negative!

• 36% of smaller

charities bucked the

sector trend and saw

income levels rise in

2011

• For many 2009 was

more difficult than

2011

More consideration of value for

money

• 56% (46%)reviewing services they use

• 47% (40%) looking to work more collaboratively

• 45% (39%) sharing resources

Our commitment in tough times

• Maintaining a consistent level of funding - £25.24m income next year too

• Simple, single grant process with online eligibility

• Continued commitment to core costs

www.lloydstsbfoundations.org.uk