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Why Grant Funding Can Feel Broken — and What Charities Can Do About It

The Reality for Small Charities & Non-Profits

For many small charities and community organisations, grants are a lifeline. They can mean the difference between launching a new project or shelving it for another year.

But if you've ever felt overwhelmed by where to start, spent hours filling in forms, or wondered whether all that effort will pay off — you're not alone. The grant application process remains too slow, too manual, and too uncertain for the people who need it most.

What’s standing in your way?

While some large foundations have increased grant funding making with the top 300 funders boosting spend by 3% in real terms, access remains a challenge. More than £20 billion was distributed by UK funders in 2024, yet smaller organisations still face disproportionate barriers.

Common obstacles include:

And the cost to the sector is huge

Research from the Law family Commission on Civil Society found that small and medium-sized charities now spend over one-third of their grant income on the application process, costing the sector an estimated £900 million annually.

What if it could be different?

What if charities didn’t need to spend hours searching for funding leads? And writing a grant application didn’t mean starting from scratch each time? What if setting out your budget for a funder’s form didn’t mean wrestling with spreadsheets? Can tech, tools or AI could lighten the load?

These are the kinds of questions we hear every week — and the ones we explore through our free resources. Whether you're fundraising solo or supporting a small team, our weekly newsletter Non-Profit Connect and exploring our online knowledgebase offer practical tips, time-saving tools, grant insights, and practical tips to make the process less overwhelming and more effective.

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