Trusts and foundations

This section provides an overview of:

• Independent grant making trusts and foundations
• Community foundations

Trusts and foundations

The Association of Charitable Foundations estimate that there are approximately 10,000 independent trusts and foundations in the UK, giving £2 billion in grants each year to voluntary and community organisations - almost the same as the sum total of government grant funding of the voluntary sector.

Independent trusts and foundations are good sources of funding for unpopular causes and the more progressive may embrace an element of risk, funding pilot projects and new initiatives.

Independent trusts and foundations tend to prefer to fund gaps in government funding, but each has a separate culture and criteria. It is vital that you do your homework properly and prepare an individually tailored application - trusts and foundations receive numerous applications that fail to meet even their basic criteria: do your research first so as not to waste your time or theirs.

For more information on the make-up and nature of UK Trusts and Foundations visit the Association of Charitable Foundations website.

Community foundations

Community Foundations are charitable trusts that support local community causes. Their role is to manage donor funds and build endowment as well as make grants to charities and community groups, linking local donors with local needs.

Created by and for local people they help donors express their long-term interest in an area and its needs. Community foundations have been active in the UK since the 1980s and a rapidly growing network of approximately 60 foundations is now established across the country.

They raise funds from the private, public, and the voluntary and community sectors, which are then invested in permanent assets, the interest from which is used to make grants to meet local needs.

They also act as intermediary vehicles for a range grants flowing into a particular area, becoming a one-stop shop for smaller organisations, and effectively taking on the administration and bureaucracy role on behalf of less well resourced organisations.

In 2004, UK community foundations held over £90 million in endowment (funds for the future) and in the 2003/04 made grants of over £53 million.

Visit the Community Foundation website for more information and to find a community foundation near you. 

More information

The Institute of Fundraising offers specialist courses and support groups for trust fundraisers.

You can search for trusts who might support your organisation on www.fundingcentral.org.uk

Where next?

Learn more about grant fundraising

Learn more about gift fundraising

Go to the income sources overview