Recommendations for funders
The Power of Small project’s recommendations for trusts, foundations, and statutory and corporate funders.
1. Offer more flexible, core, multi-year funding
Short-term, project-based funding continues to undermine the stability and long-term effectiveness of small charities (‘Smalls’). The call for more flexible, core, multi-year funding has been longstanding, but progress remains uneven.
To move from rhetoric to results, funders should commit to increasing the average length and flexibility of grants awarded to small charities – for example, by aiming to shift the typical grant term from 12 months to at least 24 or 36 months, ideally five years plus, across their portfolios.
Where possible, funders should track and publish data on grant duration and funding type, enabling greater transparency and accountability across the sector. Mechanisms such as 360Giving make it easier for voluntary organisations to see what, where and who funders are providing funding to.
This would allow infrastructure bodies and funders to measure whether access to multi-year, core funding is genuinely increasing over time. Greater investment in this kind of funding is essential to allow Smalls to plan, retain staff and deliver services with confidence.
2. Simplify application and reporting processes
Current application processes are often disproportionately complex for small charities, limiting access to funding. Funders should streamline and right-size processes to match the scale of grants awarded.
Funders should seek to work to best practices and, as a minimum, sign up to and implement the IVAR principles in their grant making.
3. Support capacity-building and leadership development
Funders can amplify their impact by providing additional support alongside funding, helping Smalls build resilience and improve long-term sustainability.
4. Ensure funding is more equitable and inclusive
Funders should proactively address regional disparities and barriers for underrepresented groups, ensuring that funding reaches diverse Smalls across all communities.
5. Foster collaboration and advocacy for systemic change
Funders are not just grant makers – they are key actors in shaping the broader funding environment. They have the influence, insight and responsibility to help build a fairer and more coherent funding ecosystem, especially for Smalls, which remain underfunded despite delivering critical frontline services.
Fragmentation, duplication and complexity in funding processes create unnecessary barriers. Greater coordination and collective action among funders can lead to more equitable access, improved efficiency and deeper impact across the sector.