Foundations and grantmakers provide a vital source of funding for many charities. Once seen as the sector’s “risk capital”, grants are now one of the most common ways charities can obtain funding. While grants were previously used to back innovative and new ideas, they are now increasingly funding core services.

The role of funders has never been more important. The onset of Covid-19 brought unprecedented challenges to the voluntary sector. Restrictions to curb the spread of the virus led to the cancellation of income-generating activities which left numerous charities in financial limbo. Now, the sector is faced with the country’s worst cost-of-living crisis in half a century. As more households face financial hardship, some have no choice but to reduce or even stop charitable donations. On top of that, charities are seeing increased demand and cost pressures.