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A guide to fundraising and grants
Read time: 10 mins Added date: 08/01/2025
Selecting the right sources of funding for your charity or organisation can be challenging. Read our guide for tips on some of the options you can consider.
Local fundraising
Become a key part of the community
Local fundraising is often the simplest way to bring in funds. It may just be in small amounts. Don’t forget though – these small amounts can help keep things ticking along. This means you can focus on the things that make your organisation special.
Local fundraising is most effective if your community sees you as a core part of it. They need to see that you’re willing to contribute – that you’re not just about asking them for support. Your community isn’t just the area in which you operate, though. It can also include the people and organisations you work with. It's your online community too.
Don’t be afraid to pick up the phone to introduce yourself to the people and organisations in your community. The bigger your network, the more chances you have to collaborate.
Contribute to your community
Why not organise a free event for your community? Ask for donations and you’ll likely cover your costs anyway. A great way of doing this is to organise a fair or festival, either on your premises or in partnership with a local venue.
People are often happy to donate their unwanted toys, books and clothes that you can sell. Don’t have the resources to set up stalls yourself? Sell stalls to local businesses and just take care of the tea and biscuits. Don’t forget to invite the local paper and your MP.
Want to do this but don’t have your own venue? You can still host an event. Speak to your local Councillor about using a public space like your local park. A local venue may be willing to give you a space for free, too.
Support others at their events and programmes
This shows you’re part of the community. It shows your organisation in a good light and encourages support in return. You could run a stall at someone else’s fair, speak at an event, join a committee or get involved in the local carnival. If you’re going to collect money outdoors, check with your Local Authority as you might need a permit to do so.
Form close relationships and partnerships with the organisations around you, to share effort and expenses. This also gives you access to new networks of people.
Make it easy for people to donate
When you ask your local community for donations, be welcoming, inviting and give them options. Think beyond donation buckets. Options like card donations, links or QR codes can make it easy for people to donate online.
These might send people to a fundraising page like JustGiving or GoFundMe. There are also options for simple text-in donations. Bear in mind that these services may not be free. They usually take a fee or a percentage of any donations.
Take advantage of any public space you have
Use a fence, window, or other space to tell people what you do and what you need. How about outdoor banners? These can be cheap to produce. Some manufacturers will even throw in simple designing for free if you have your own templates and logos. If you don’t own this kind of space, speak to organisations in your area. They may be willing to let you put up some posters or banners.
Make everything look coherent
All your materials should share a similar theme/design. That way, when people see a poster in a shop or a leaflet through their door, they’ll instantly connect it with your organisation.
Let your community know that you need their support
Make it as easy as possible for people to support you. Consider using words like ‘critical’ and ‘vital’. These may seem scary to you, but a potential donor is more likely to respond if they believe you really need their support.
Use clear calls to action
People will understand a request like ‘donate £2 now by texting DONATE to xxx’. They know what ‘drop off your empty drink cans here, we can recycle them for cash’ means. These requests tell people exactly what they can do to help.
If you can, tell people what their donations will achieve. For example, say ‘donate to repair our roof’. This resonates with donors as it adds meaning to their gift. It also makes the task feel more achievable.
People may be less keen to donate if you’re nameless and faceless.
Manage your finances more effectively
Whether you’re a charity, community group or another kind of not-for-profit, here you’ll find guidance and support to help manage your banking more effectively.
Digital fundraising
Fundraising online is a great way to reach a large audience. Bear in mind that this is a very saturated market. People tend to see dozens of messages a day asking for support, so you need to make yours stand out.
Most of the time, you’ll be trying to reach people who have never heard of you and have no idea what you do, so getting that messaging right is key. This type of fundraising is about telling your story in an engaging and compelling way.
Make it easy for people to donate
People could donate by a web link or text code. Aim to use a reputable platform for donations, like JustGiving or PayPal. Bear in mind that these services can charge a fee or take commission on donations.
Use social networks
Pick the social platforms that are the best fit for you. For example, there’s no use being on image-sharing platform Instagram if you have no pictures to share. Once you’ve decided which sites you want to use, keep your posts regular and consistent.
Start small, in communities where people know you
You’re not going to go viral overnight. You’re more likely to generate organic growth from people who believe in what you do. Don’t forget to ask them to share your social media posts.
Videos can tell engaging and interactive stories. Make them short and punchy – people tend to stop watching after 10-15 seconds.
Understand insight
Stay up to date on any statistics and reports that are relevant to your organisation. Use these in your posts to show that your charity or organisation is important to the people you serve and the wider society.
Consider writing a regular blog
Blogs are a great way to let people know what you’re doing. This is good from a communications point of view. It also allows people to reference your work as an expert on the subject. Plus, you could use it as a record of your achievements for grant applications or the media.
Be concise
- Keep your message short and simple.
- Signpost people to your website if they want more detail.
Be engaging
- Make your story coherent, engaging and emotive. If you can, show the direct benefit of donations.
Be communicative
- Respond to any interactions.
- Thank people for their comments and donations.
- Tell them what their donation has done or will do.
Be clear
- Make any calls to action clear, specific and easy to complete. Keep it quick too, with as few clicks or taps as possible.
Grant applications
Why it’s worth applying for grants
Grant applications are probably one of the most challenging ways to fundraise for a charity or organisation. They’re also one of the most lucrative.
- Small grants – are usually up to around £5,000 and can sometimes be specific to a purpose, population, or area.
- Large grants – can be for any amount from several thousand to several million pounds.
1. Small grants
Small grant applications are usually not too complex. Sometimes they don’t even need quotes from suppliers or contractors.
The money tends to be for a single purpose or to create benefit for a specific population. For example, to buy a bingo machine and commercial water boiler to start a regular coffee morning for pensioners.
These grants are much more common than the larger ones. While applications must be well written and show a clear benefit, they’re usually easier to get. You may be competing with others for a small number of grants or there might be lots of grants available from a much larger pot of money.
Top tips for applying
There’s much to think about when you apply for grants. Here are some tips to help you apply successfully for small grants.
Do your research
- Do local businesses support charities?
- Speak to others about their successful bids.
Read the rules
- Is the grant only for certain causes or areas?
- Don’t waste time on grants that you’re not eligible for.
State the purpose
- Be clear about how this money will support what you do.
- Make sure you answer the questions that the application form asks.
Get quotes
- If the grant asks for these, give details that show all the work or items you need to buy.
Also consider the following:
- Take ‘before’ and ‘after’ pictures to prove that this money has been well spent in future.
- Print the grant information notes and highlight the important bits. Tick off the application requirements as you complete them.
- Keep your financial data up to date – the grant provider may want to check this.
- Be honest – always tell the truth in your applications.
- Save your answers about what you do – you can re-use these for future applications.
Are you applying for the kind of grant where people get to vote, such as supermarket tokens or vote-by-text? Make sure you’ve considered this in your marketing strategy.
2. Large grants
The applications for larger grants are usually more complex. It may take you weeks to write these. Some have very specific criteria. Expect them to ask for plenty of supporting evidence. You might prefer to employ a professional bid writer to do this for you.
There are many different types of funding available so it’s important that you pick the right grant for you. Some will cover the entire cost of the project or jointly cover the cost with another grant provider. Others may expect you to contribute together with their funding.
You may need to spend some time preparing before you can submit your grant application. For instance, say you need funding for a construction project. They may want you to put the project out to tender or ask an architect to submit initial plans. If your grant is to pay someone to work for you, you’ll need to provide details of the work they’ll do.
The guidance we’ve given on small grants still applies, but these grants are likely to need much more detail. For instance, you might be suggesting that a certain cause or population desperately needs support. They’ll expect you to provide evidence by quoting statistics or reports. For a large grant application, they’re likely to ask you for several quotes for each item. If the grant is for work on property, you may need to give proof of ownership or details of your lease.
Researching large grants
Do your research and find a grant that fits you and your project. Most grants are very clear about what they will and won’t fund. Choose wisely. Avoid creating a purpose that doesn’t really exist, just to meet the needs of a grant.
Don’t be afraid to contact the organisation awarding the grant. This helps you to double check that you’re eligible, plus you may also be able to pick up some tips.
See if you can find out any information of earlier grants from this organisation. This will give you a better understanding of what kind of projects they like to support.
Also, consider the following:
- Think about hiring a professional bid writer.
- Find out what a successful bid looks like – do you know anyone who would show you a copy of their successful bid?
- Think about what makes your bid unique – research your sector to learn how to stand out.
- Allow time to prepare what you need – this is on top of the time it takes to write the bid.
- Frame it as an issue you can solve – state the issue and how funding will make your solution possible.
- Write a detailed budget – this helps you to ask for a specific sum of money.
- Include a timeline – most grants need this visual guide on how your project will progress.
- Proofread your bid – check it several times. Better still, get someone else to do this too.
Make sure you cover everything that the application asks for. Most large grants are very popular, and they check applications thoroughly. For example, if they ask for three quotes and you only give two, they’ll likely reject your application.