Supporting core costs forsmall and medium-sized       charities:  what can we learn?         Harriet Stranks   Head of Gra...
Setting the Scene- About the Foundation -
A leading community grant maker• A registered charity• Over £300m invested in  more than 42,000 charities• Independently r...
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                 ...
Consistent support across        England and Wales• In 2011, the Foundation  invested £21 million across  England and Wale...
Our funding programmesCommunity Programme                 Issue based Programmes• Focuses on core funding           • Fund...
Our commitment to core costs• In the last three years,  we invested £56.8m in  core costs and  showed it made a  differenc...
Our commitment to core costs
What do we look for?          • Good governance          • Good planning          • Being able to            articulate an...
What do we look for?          • Good support for            staff and volunteer            development          • Finances...
Before you contact us• Do your homework and plan  a proper timetable• Be clear about what you’re  seeking funding for• Doe...
Tips to help your application• Be realistic in what you ask  for• Build an evidence base –  we’ll want to see how you  mon...
How do we support your work?• From initial request      • Online eligibility questionnaire      • Early identification of ...
The value of core funding
Investing in core costs does     make a difference              • Supports                development of                ba...
Investing in core costs does       make a difference• Supports local  jobs/volunteering  opportunities  often the first st...
Investing in core costs does       make a difference• But it is modest in  terms of numbers• Has little effect on  nationa...
More detailed results
Making a difference to those       most in need              Key benefits              include:              • improving b...
Making a difference- Improving life choices and chances                  • Over 85% helped to improve                    t...
Making a difference- Improving social and community engagement -                       • Improved social and              ...
Making a difference- Helping people be heard -              • A third of charities were able                to demonstrate...
Making a difference- Access to advice and support networks -                    • Over a third provided                   ...
Making a difference- Improving basic skills and self-esteem -                     • 44% improved the basic                ...
We believe investing in core  costs does make a difference• It doesnt produce a major ‘step change’ in  social policy but ...
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 (4...
Our 2011 Funding Survey• 70% of respondents are currently in receipt of a  grant from the Foundation and 27% have received...
It is tough and getting tougher         • 91% (70% in 2009) believe funding           will be harder to secure in 2012    ...
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 significan...
A Lack of Support• Strong concern  amongst charities  that there is a lack of  adequate support  from both central  and lo...
Securing Funding• Charities with incomes of £301 -  £500k struggled most to secure  new funding with less than a  quarter ...
Securing Funding• 60% of charities with incomes  of £1m or less saw a decrease  in the level of income  received during th...
The Need for Core Funding• 88% of community based charities in England and  Wales say they need core funding to support co...
What support is needed?• 35%(no change to 2009)  said that fundraising  support would be most  useful to help become  more...
It is not all negative!• 36% of smaller  charities bucked the  sector trend and saw  income levels rise in  2011• For many...
More consideration of value for             money• 56% (46%)reviewing  services they use• 47% (40%) looking to  work more ...
Our commitment in tough times•    Maintaining a     consistent level of     funding - £25.24m     income next year too•   ...
www.lloydstsbfoundations.org.uk
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Core costs for small and medium charities

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Core costs for small and medium charities

  1. 1. Supporting core costs forsmall and medium-sized charities: what can we learn? Harriet Stranks Head of Grant Making - North
  2. 2. Setting the Scene- About the Foundation -
  3. 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. 4. Our focus – people• Poor life choices/chances• Social exclusion/isolation• Helping people be heard• Chaotic lives
  5. 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. 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. 7. Our funding programmesCommunity 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. 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. 9. Our commitment to core costs
  10. 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. 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. 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. 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. 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. 15. The value of core funding
  16. 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. 17. Investing in core costs does make a difference• Supports local jobs/volunteering opportunities often the first step towards employment
  18. 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. 19. More detailed results
  20. 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. 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. 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. 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. 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. 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. 26. We believe investing in core costs does make a difference• It doesnt 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. 27. The Impact of the current economic climate
  28. 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. 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. 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. 31. More volunteers but...• Over half have seen interest in volunteering rise – over a quarter can’t cope with the demand
  32. 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. 33. A Lack of Support• Strong concern amongst charities that there is a lack of adequate support from both central and local Government
  34. 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. 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. 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. 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. 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. 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. 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. 41. www.lloydstsbfoundations.org.uk

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