The grantmaking picture
The analysis of the grantmaking picture uses data based on annual returns to the Charity Commission for England and Wales (CCEW), the Scottish Charity regulator (OSCR) and the Charity Commission for Northern Ireland (CCNI) as well as other regulators. 360Giving has amended the data where necessary by referencing the grantmaker’s published accounts. Figures for grantmakers who do not publish their accounts have been taken from data they have published about their grantmaking.
Note that local authorities and devolved governments have had to be excluded from this because there is no reliable data available. This represents over £1 billion of grants data that is missing from the overall picture.
For this analysis, we have organised UK grantmakers into a number of different segments based on their characteristics, with five broad categories. The categories are:
- Grantmaker – UK trusts and foundations making grants, generally to charities and non-profit groups in the UK. Includes community foundations, family and corporate foundations and others.
- Charity – grantmaking alongside other charitable activities or in the support of a single cause or institution.
- Government – grantmaking by central, local, devolved government and arms-length bodies. Comprehensive data for local and devolved governments could not be sourced.
- Lottery – grants made by the National Lottery distributors.
- Other – Donor-advised funds, companies and international grantmakers.
More detail on this segmentation is available in our methodology.
Total grantmaking by UK grantmakers
We estimate that after an adjustment for potential double-counting between organisations within the segments (as indicated in the table above), and with an additional £1bn+ distributed by local authorities and devolved governments not included in the table, the total grantmaking in 2022-23 was £20bn to £21bn.
Regranting
Over recent years we have seen increasing funding flows between grantmakers. We have sought to explore the patterns of these flows to improve our understanding of the overall picture and any potential double-counting in the figures above, but also to be able to explore these trends in future years.
We have used the broad term ‘regranting’ to represent the flows of these finances, but it reflects a variety of practices. Some examples include:
- Major funding appeals which have engaged local funding partners to distribute funds in a specific area
- Collaborations between funders on shared programmes or pooled funds
- Funding provided to specialist organisations to distribute funds to members of specific communities
- Match funding schemes where one funder is matching the funds awarded by another to the same recipients
UK context
There is no definitive figure for the total amount of voluntary sector income in 2022-23 to compare these figures to. The total income of organisations registered with the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland for 2022-23 is in excess of £100bn – including grantmakers – so this represents some double counting in income received by funding organisations that is then redistributed to other charitable organisations.
In the last year for which analysis is available (2020-21), NCVO estimated in the UK Civil Society Almanac 2023 that around 47% of sector income came from the public and 30% from government – including government contracts.
Further analysing the NCVO figures suggests that grantmaking represents an estimated 14-22% of sector income. This is in line with the level of grantmaking identified in this analysis.Although some of the grants in the UKGrantmaking totals are to small unregistered organisations which are under-represented in the NCVO and regulator sector figures. In addition, community interest companies and overseas organisations are included as grant recipients but do not appear in the sector profile.
However, despite making up less than a quarter of the sector income overall, grantmaking is a really critical source of income to the sector, representing the majority of income for some organisations. Grantmaking also funds some activities that wouldn’t happen without the contribution of grants, including activities supporting individuals and communities unable to pay for services and causes or organisations that are less suitable for public fundraising or where fundraising or fees cannot pay the full costs.
Reflections
The lack of data from local authorities and devolved governments is a barrier to understanding the national and local grantmaking picture. In both these cases the detail of the specific grants is not available using the 360Giving Data Standard, and we were unable to source totals for these figures from each organisation. It is not just that the figures are not available for this research, but in many cases they are not available at all. For example, the Directory of Social Change identified in their 2023 research(1) that only 55% of local authorities were able to respond fully to their Freedom of Information requests on their grantmaking.
This lack of data impacts decision-making within these organisations, as well as impacting understanding of the overall picture.
We will explore the dimensions of other types of grantmakers and their grantmaking in subsequent sections of our analysis. We hope in future years to be able to work with local authorities and devolved governments to improve the data available.