A recent report by NCVO has brought to light a pressing issue: small charities are grappling with a funding system that is, in many ways, broken. The “Power of Small” report, based on consultations with over 600 small voluntary organisations, reveals that more than 300 charities with an income below £1 million identified funding as their primary concern (Civil Society).
The core issues
Several critical problems have been identified:
- Short-term funding cycles: These create instability, forcing organisations to continuously seek new sources of financial support.
- Preference for larger organisations: Small charities feel that funders often favour larger, well-established organisations when allocating funding.
- Lack of representation: A significant number of small charities feel excluded from major funding or policy decisions, with 78% not feeling adequately represented.
- Emotional toll: The financial insecurity and administrative burdens are leading to stress, burnout, and, in extreme cases, suicidal feelings among charity leaders.
The need for practical support
Despite the availability of training and resources, many small charities find it challenging to access relevant support or lack the time to engage in professional development. Hybrid models of support, combining in-person and digital resources, have been suggested as effective solutions.
Recommendations for change
The report calls for several reforms:
- Simplify procurement processes: Statutory bodies should lower access barriers to ensure small charities can participate meaningfully in public service delivery.
- Increase grant length and flexibility: Funders should commit to longer and more flexible grants, tracking and publishing data on grant duration and funding type.
- Simplify application and reporting: Current systems are disproportionately complex for small charities and need to be streamlined.
How Fundin is addressing these challenges
At Fundin, we are committed to supporting small charities by:
- Streamlining grant applications: Our AI-powered platform simplifies the grant application process, saving time and resources.
- Enhancing accessibility: We design our tools to be user-friendly, requiring minimal technical expertise, thus democratising access to AI benefits.
- Promoting ethical AI use: We ensure our AI solutions uphold the values and integrity of the organisations we serve.
Moving forward
The challenges faced by small charities are significant, but not insurmountable. By embracing technology and advocating for systemic changes, we can create a more equitable funding landscape. At Fundin, we are dedicated to being part of the solution, working alongside charities to navigate these challenges and build a more sustainable future.
For more insights and support, visit our website or contact us directly. Together, we can make a difference.
