Nine in 10 charitable foundations to “maintain or increase” grant funding in 2021

Almost nine in 10 charitable foundations expect to “maintain or increase” grant funding in 2021, a major study has revealed.

The research, published by The Association of Charitable Foundations (ACF), comes as the sector moves into the recovery phase of the coronavirus pandemic.

According to the survey, 45 per cent of grantmakers plan to maintain their 2020 level of grant spending in 2021, while 41 per cent plan to increase it. This is despite four in 10 (40 per cent) organisations forecasting a fall in their own finances.

The ACF, a membership body for UK foundations and grant-making charities, also found that grantmakers plan to put charities at the heart of their policies following a turbulent 12 months.

For example, one in two foundations plan to create or renew coronavirus-specific funding programmes this year, while eight in 10 will continue to apply “increased flexibility for grantees and reduced administration for funding applicants”.

Commenting on the report, ACF’s Head of Policy, Max Rutherford, said: “In 2020, foundations across the UK stepped up to meet the hugely increased need of the communities and causes they care about.

“We now know this support is likely to continue in 2021, with funding levels to be maintained or increased in nearly all cases. We also welcome the finding that many of the positive changes to funder processes – such as increased flexibility for grantees and reduced administration for applicants – are set to be embedded beyond the emergency response”.

Last year, it was revealed that charities could face a £10.1 billion “funding gap” as a result of Covid-19, with the sector facing major shortfalls in retail and fundraising revenue.

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Posted in Blog, Charities.