What is statutory funding for charities?
Funding is the lifeblood of any charity, but getting it isn’t always a straightforward process! Typically, charities get their funding from two sources: directly from individuals and organisations or funding from governmental sources. This second type of funding is known as statutory funding, and it’s what we’re going to take a look at in today’s article.
The basics of statutory funding
According to NCVO, statutory funding accounts for around 60% of the charity sector’s total income, and yet approximately 75% of voluntary organisations do not receive any state support at all. This means that there are charities that may qualify for statutory funding, but aren’t receiving it. Below are some examples of ways in which these charities can get the support they need.
What types of statutory funding are available for UK charities?
Statutory funds come from various government bodies, including central and local government grants, contracts, and initiatives. In response to the COVID-19 pandemic, the government announced a £750 million pledge with key allocations for specific charitable causes including:
- £200 million for hospice organisations
- National Lottery Community Fund support for projects and organisations providing support to communities affected by COVID-19
- £85 million for the Community Match Challenge
- £60 million for frontline charities in Wales, Northern Ireland, and Scotland
- £150 million for charities, social enterprises, and individuals from dormant building society and bank accounts
Charities are under significant pressure. Although donors have contributed £4.5 billion between January and June (an increase of £800 million) and volunteering has surged over the past year, corporate sponsorship levels fell to just 4% in 2020.
With charity shops closing, fundraising events being cancelled, and one-fifth of donors prioritising support to NHS-related charities, funding for smaller charities saw the most significant decreases in funding. But that doesn’t mean you’re out of options.
How to get statutory funding for your charity
Statutory funding resources are spread out through different bodies all over the country. Therefore, getting access can be somewhat challenging. Here are some tips to help your charity get the financial injection it needs from the government and other sources to support your cause.
Online grant searches
Spending every day on Google trawling search results is one option, but it’s time-consuming and frustrating. Instead, we recommend that you use a search tool like My Funding Central or Funds Online. These websites are specifically designed for grant searches, with filters you can use to get more accurate results.
Sign up for email newsletters
Searching for funding is easier when you’re on the right mailing lists. That way, you get relevant funding information as soon as it’s rolled out, allowing you to get in line for the right grants and social investments. Grants Online and Get Grants not only keep you informed about new funding opportunities but also offer application tips and advice.
Consider funding options outside the box
Statutory funding is important, but it’s also essential to look at new opportunities for private funding through individuals and CSI. This includes partnerships with organisations that can help charities go digital and tap into the increase in contactless payments. The right partner can also help to give your organisation a voice and funding channel on social media and give you access to innovative, functional fundraising tools.
By aligning charities with the values and behaviours of today’s consumers, charities (especially those not meeting COVID-19 emergency funding criteria) can find reliable and sustainable sources of funding much more efficiently.
Economic recovery is a central focus for the UK government, and charitable organisations and non-profits play such an important role in supporting this recovery. Statutory funding is a critical foundation for keeping these organisations active and effective, and it’s important that this funding gets to the right people at the right time.
GoodBox is passionate about developing simple, effective technology that helps charities improve their fundraising. Our contactless payment systems allow you to move away from the hassles of cash and get donations through an easy, tap-to-give terminal. Contact our team to start your fundraising journey today.