A recent report by NPC, commissioned by the Lloyds Bank Foundation, has highlighted a significant disparity in the funding landscape for criminal justice charities. The research reveals that 94% of statutory funding in this sector is allocated to large charities with annual incomes exceeding £2 million, leaving smaller organisations with less than 2% of such funding.
This imbalance is particularly concerning given that smaller charities often provide essential, community-based services that address the root causes of criminal behaviour and support rehabilitation. The report also points to a mismatch between need and funding, noting that only 3% of total income goes to charities led by or focused on supporting racially minoritised communities, despite the clear evidence of structural inequalities within the criminal justice system.
The challenges faced by small charities
Small charities in the criminal justice sector often navigate a complex web of funding sources, both governmental and charitable. The administrative burden of securing funds can be overwhelming, diverting resources away from frontline services. Additionally, the lack of flexible and multi-year funding options hampers their ability to plan long-term and deliver consistent support to those in need.
Recommendations for funders
The report advocates for several measures to address these disparities:
- Flexible and multi-year funding: Providing longer-term funding commitments can help small charities plan and deliver services more effectively.
- Support for root cause initiatives: Investing in programs that tackle the underlying factors leading to criminal behaviour can have a lasting impact.
- Clear definition of statutory responsibilities: Clarifying which activities fall under statutory duties can help charities understand where additional support is needed.
- Minimum standards of contracting: Establishing baseline standards can ensure fair and equitable treatment of all charities, regardless of size.
- Exploration of pooled funding: Collaborative funding models can distribute resources more evenly and reduce competition among charities.
Fundin’s commitment
At Fundin, we recognise the vital role that small charities play in the criminal justice system. We are committed to supporting these organisations by providing tools and resources that simplify the funding process, reduce administrative burdens, and promote equitable access to financial support.
By fostering a more inclusive funding environment, we can empower small charities to continue their essential work in rehabilitation, prevention, and community support.
For more insights and to read the full report, visit Civil Society’s article.
