Power of Small project report

Following our rapid research review, the Power of Small project’s second phase of research, the main research phase, ran from June to August 2024.

This involved a survey of over 400 people from a wide range of organisations, stakeholder engagement, and qualitative insights from workshops and consultations.

Through this process, four key themes emerged as the primary challenges and opportunities for small charities (‘Smalls’):

• Many Smalls struggle to secure core, unrestricted and multi-year funding, which limits their ability to engage in long-term planning. Short-term funding cycles create instability, forcing organisations to continuously seek new sources of financial support. One respondent noted: “Funders encourage us to be innovative, but what we really need is stability. We can’t keep reinventing ourselves just to fit funding criteria.”
• Another recurring challenge is the burdensome nature of application and reporting processes, which disproportionately impact Smalls with limited administrative capacity. Many charities reported that the time spent applying for funding detracted from their ability to deliver frontline services. One respondent explained: “It’s exhausting to constantly justify why we exist. We are here because the need is real.”
• The financial precarity of Smalls was also identified as a key driver of stress and anxiety among charity leaders, with one survey participant stating: “Worrying about how to keep the lights on every year takes a serious toll on mental health.”
• The perception that funders prioritise larger, well-established organisations was also a major concern. Smalls expressed frustration that their impact was often overlooked due to risk-averse funding policies. A charity leader shared: “Some funders say they want impact, but then tie us up in so many restrictions we can’t deliver what actually works.”

These structural challenges highlight the need for a reformed funding system that provides sustainable, accessible and equitable financial support for small charities.

• Smalls frequently reported feeling overlooked by funders, policy makers and infrastructure organisations. The research found that 78% of survey respondents did not feel adequately represented in major funding or policy discussions.
• Many participants noted that decisions affecting the sector were often, seemingly, made without input from Smalls, exacerbating existing inequalities in funding and support. One respondent stated: “Decisions that impact our sector are made without us in the room. There is no mechanism for us to challenge or shape these conversations.”
• The lack of formal representation contributes to frustration and stress among leaders of Smalls. Many described the emotional toll of consistently advocating for recognition and legitimacy in a sector that prioritises larger organisations. A charity leader remarked: “The emotional toll of constantly fighting for recognition is exhausting – many of us are burning out trying to prove our worth.”

These concerns reflect a broader issue of power imbalances within the sector, where Smalls lack the platforms and influence needed to advocate for their needs effectively.

• Many Smalls struggle to navigate the complex landscape of sector support. Practical support was ranked as the second-highest priority in our survey, with 128 respondents placing it second and 89 ranking it third.
• Despite the availability of training, information and support, many Smalls find it difficult to access relevant resources or lack the time to engage in professional development. One charity leader stated: “We need training that fits around our schedules – many of us are balancing multiple roles and simply don’t have time to wade through endless documents.”
• Survey participants expressed a strong preference for peer-led learning and mentorship, as well as a more tailored approach to sector training.
• Several respondents highlighted the need for a centralised digital gateway that would provide a single access point for funding opportunities, governance support and operational guidance. A participant reflected: “Support should come from those who have lived experience in small charities, not just well-meaning professionals who have never faced our struggles.”
• Hybrid models of support were identified as the most effective way to provide ongoing assistance, combining in-person and digital resources.
• However, respondents also highlighted that a lack of structured support contributes to stress and burnout, particularly for charity leaders managing multiple responsibilities. As one participant stated: “The pressure to ‘do it all’ with limited resources is immense – having practical support could ease the mental strain on charity leaders.”

These insights suggest that improving access to customised, hands-on support could significantly enhance the sustainability and effectiveness of Smalls.

• Smalls continue to face significant barriers in influencing policy decisions that affect their operations. Policy and advocacy were ranked third and fourth in priority in the survey, with 60 respondents placing it in rank three and 36 in rank two.
• The research found that 55% of rural-based organisations reported fewer funding opportunities compared to their urban counterparts, further exacerbating inequalities in policy influence and access to resources.
• The lack of formal representation for Smalls in key decision making spaces emerged as a major concern. Many organisations reported that while they are often consulted, they are rarely given meaningful opportunities to shape policies. One participant noted: “We are constantly asked to be consulted but never given power to shape decisions.” Another stated: “Policies are designed for big organisations and we’re expected to fit into them.”
• In discussions on possible solutions, several participants pointed to the Icelandic model, in which small charities and local groups are formally involved in government policy development. The potential for replicating such a model in the UK was suggested as a way to ensure greater sector representation and equity.
• The research also highlighted that exclusion from decision making processes contributes to stress and frustration among leaders of Smalls, who feel powerless in shaping the policies that impact their work. One leader described the emotional impact, saying: “Fighting to be heard takes a toll – many of us feel exhausted and demoralised by the constant struggle for representation.”