The document discusses the findings of a 2011 funding survey conducted by the Lloyds TSB Foundation. It summarizes that most small and medium charities are struggling financially and having difficulty meeting increased demand for services due to lack of funding and government support. However, the Foundation remains committed to providing core funding for charities, especially those assisting disadvantaged communities, and hopes its consistent funding can help address challenges faced during tough economic times.

1. Supporting core costs for
small and medium-sized
charities:
what can we learn?
Harriet Stranks
Head of Grant Making - North

2. Setting the Scene
- About the Foundation -

3. 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)

4. Our focus – people
• Poor life
choices/chances
• Social
exclusion/isolation
• Helping people be heard
• Chaotic lives

5. 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

6. 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

7. Our funding programmes
Community Programme Issue based Programmes
• Focuses on core funding • Funding for charities with
that helps disadvantaged specific track record and
people to play a fuller role in expertise in the nominated
the community area
• Rolling programme • Time limited programme
• Charities must have • No upper income limit for
reserves of 12 months or charities that are eligible
less • Previous themes have been
• With an income of £1m or the work in criminal justice
less if you work locally or system and older people
regionally or £5m or less if living in financial difficulty
you work nationally

8. 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

9. Our commitment to core costs

10. What do we look for?
• Good governance
• Good planning
• Being able to
articulate and
demonstrate the
difference your work
makes to your
beneficiaries

11. 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

12. 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.

13. 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

14. 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

15. The value of core funding

16. Investing in core costs does
make a difference
• Supports
development of
basic skills
especially around
transition
• Supports the basic
‘building blocks’ of
communities

17. Investing in core costs does
make a difference
• Supports local
jobs/volunteering
opportunities
often the first step
towards
employment

18. 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

19. More detailed results

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. The Impact of the current
economic climate

28. 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

29. 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

30. 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

31. More volunteers but...
• Over half have
seen interest in
volunteering rise –
over a quarter can’t
cope with the
demand

32. 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

33. A Lack of Support
• Strong concern
amongst charities
that there is a lack of
adequate support
from both central
and local
Government

34. 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

35. 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

36. 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

37. 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

38. 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

39. More consideration of value for
money
• 56% (46%)reviewing
services they use
• 47% (40%) looking to
work more
collaboratively
• 45% (39%) sharing
resources

40. 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

41. www.lloydstsbfoundations.org.uk