Most community groups need some money to run their projects, even if its just to print fliers and hire spaces for meetings and events. As organisations grow they often start thinking about applying to trusts, foundations and government bodies for grants to enable them to expand their projects. Here’s a few thoughts and tips on starting on that journey.

Challenges and limitations of funding

Getting grant funding can make a huge difference to organisations, but its important to think very carefully before taking this path for the following reasons:

• It normally requires your group to become more formal (for example registering as a charity or Community Interest Company), which can take up a lot of time with admin, book-keeping etc. Once registered you will need to prepare annual accounts every year so will need to make sure your book-keeping is in order. Accountants charge around £450 to do your accounts. When you register you have to provide a registered address and if you don’t have an office you may need to pay for a Registered Address service (around £300 a year) as you cannot use a PO Box and may not want your personal address listed on the Companies House website

• Funding can end up changing what a group does, as often groups will try to make their projects fit funders’ criteria. There might not be much funding available for issues that are seen as ‘unpopular’ or ‘controversial’, which might result in groups being steered towards more mainstream work that is more easily funded

• It is hard to get funds for work that aims to create systemic change and address root causes of problems. Funding often enables organisations to support people who lack adequate housing, food, education – but seldom changes the reasons why they need that support

• Researching funders to approach and writing applications can be time consuming, and the reality is that most applications are unsuccessful

• The majority of funders will expect a report to show how funds have been used, which in some cases will include keeping receipts for proof of what you’ve spent

• Funding is usually restricted to particular activities, or ‘project costs’, and it can be hard to get support for the basic, every day costs of running your group

• It can take a long time. Even when you’ve found your ideal funder, they might not be open for applications until later in the year, and it will likely take a few months before you get a decision and receive the money (if you’re successful)

• Many grant-making foundations have hundreds of millions in the bank that they made through exploiting people and the planet, often involving the enslavement of African people. Some foundations will still be receiving funds from unethical corporations, eg Lloyds Bank Foundation, Shell Foundation.

If you’re still interested, read on…

Being ready to receive a grant

The majority of funders only give money to registered charities but there’s a growing number of them that are more flexible and will accept applications from organisations that are registered as a Company Limited by Guarantee, Community Interest Company (CIC), Community Benefit Society or other non-profit structure. To register your organisation you will need at least 3 unrelated people to go on the paperwork as leaders of the organisation (either trustees, directors or committee members, depending on which structure you chose). Some funders will accept applications from groups that are not registered (Unincorporated Associations), but usually you will need to at least have a constitution, which is a document which outlines the ways your group works, such as how it makes decisions.

An alternative to registering your group is to have a fiscal host; an organisation that holds the money for you. Fiscal hosts often offer other services as well, such as help with reporting. There is usually a charge for this but it is often less than the cost of registering your group. Social Change Nest offer a fiscal host service.

Usually to apply for a grant you will need to provide accounts and have a bank account in the name of your group (unless you’re using a fiscal host). Depending on the work you do, you may need to provide copies of your safeguarding policies.

Support to apply for funding

If you want to register your organisation or need help to write a constitution you can get free support on this from Voscur, who also provide other support via their Community Elevator programme which is free to equalities-led groups with an annual income under £10,000. You will first need to sign up as a member. If your group is led by Black and racially minoritised people Black South West Network can help with registering, fundraising and other areas.

The Resource Centre has a guide to writing a constitution for an unregistered group (known as an Unincorporated Association). National organisations such as Seeds for Change, NCVO, Directory of Social Change, Get Grants, 360Giving and My Community can also help with governance, fundraising and other areas. There’s also loads of support available on websites such as Charity Excellence Framework, Christina Poulton, UK Fundraising and Funding I.

Finding funders

Often the next step for Redistro groups is to apply to Quartet Community Foundation (apply to the Express Grant for up to £5,000) or National Lottery Community Fund (apply for up to £20,000 to Awards for All).

Here’s a list of funders we’ve put together that you might want to try. Edge Fund has a longer list on their website that typically support more community-led, grassroots work. There are also a number of funder databases you can search, such as Grants Online, Funds Online, Charity Excellence Framework and Grant Finder (which you can access for free at Bristol libraries).

Another good way to find funders that might be a good match for your group is to look at similar organisations in your area. Often they will have their funders on their website or in their annual accounts; if they’re a registered charity their annual accounts will be on the Charity Commission website.

Voscur, Black South West Network and other organisations such as Eastside Community Trust have newsletters that often contain information about local funding opportunities. Get Grants, Civil Society and Third Sector also have newsletters with information on funding opportunities.

Community development workers at the council may also be able to help. They have a Facebook page with updates.

Approaching funders

Once you have found a funder that you think is a good match for your group, get in touch with them if you can. Most organisations put in applications without first talking to the funder, even if the funder invites people to do so. It can feel scary to talk to funders, but having a conversation with them can help you write a stronger application and you can check with them if you have a good chance of being successful so you can decide if its worth trying.

Most funders will have deadlines at certain times throughout the year, so you may not be able to apply straight away. Make sure you sign up to their newsletter and follow their social media so you will be notified of when their next round is open.

Other options

If you don’t want to go down the route of grant funding there are lots of other options, that also don’t require you to register or have your own bank account. It can be helpful to have a bank account in the organisation’s name and MetroBank will allow unregistered community groups to open an account with them. You can receive one-off and monthly donations through Open Collective, and through them use a fiscal host if you don’t have your own bank account.

If you are looking to raise a relatively small amount, such as under £5,000, you may want to try a crowdfund. Many groups use sites such as Chuffed or Crowdfunder but there are many to chose from. The money you receive will be free for you to use as you need to and you won’t need to provide a report on how the funds are used as you would with a grant. Crowdfunds need plenty time and energy to spread the word, either via social media or fliers, and you might want to ask around for people and organisations to help with that before you launch it.

Another option for some groups is to find people who can make monthly donations. If you can find 20 people to give £10 per month, that would be £2,400 a year to use as you need to.

If you need equipment or materials, or even some more hands on deck, you can try making a request via the Bristol Mutual Aid Facebook page where people offer items and help for free. You can also ask for volunteers via Voscur and Can Do.

Many groups organise fundraising events (eg music and arts events, dinners), sell items such as t-shirts, use their skills to run workshops or trainings that people pay to attend or contact local companies for support. There are many different fundraising methods you can try, often it comes down to the making the most of the connections your group and community has.

In a nutshell:

• Think carefully about whether getting a grant is right for you – it may result in you spending more time and money on admin and could affect the work you do

• If you’re looking for a smaller amount, a crowdfund, community events or monthly donations might be a better option

• If you do want to apply for grants there is support available – good luck!

One of the main reasons we set up Redistro is because we see how difficult it is for grassroots groups to raise money – they face many barriers in applying for grants and community fundraising and crowdfunds work best if you have access to big networks and connections to people with money to give, which many grassroots groups don’t have. We aim to raise and redistribute funds so that groups can focus on doing their important work rather than having to fundraise or having to fund it out of their own pockets.