I read a brilliant (and still relevant) article this week, back from 2019 by Tom Neill-Eagle that’s titled “46% of grants cost more than they’re worth." How on earth can we have a grant funding industry, where almost half the donations (revenue) are costing more to process than the grant itself? That is totally bonkers! It actually makes me angry - given the need in our communities. But, having been active in this space for a number of years, I can believe it. Through ActionFunder we are offering a better, easier and cheaper way of grant funding. A way that reduces costs, admin burden and sees more money go – transparently – to the communities that need it most. The outcome = more impact. And more value. No-brainer, right? Wrong. I’m going to be brutally honest. I think much of the grant giving world is stuck in old processes and entrenched in admin-heavy ways. But why? 1. Distributing grants isn’t as easy as it sounds. It definitely needs oversight and processes. 2. Change is never easy. 3. People giving out grants have probably the best jobs in the world. They have quasi god-like status deciding who gets funds and when. There is huge power in that role. Why would they want to change? Where’s the incentive? The truth is that there isn’t much incentive. But, by not changing, grant givers are dis-serving the very communities they should be supporting. It’s about the communities, not the funders. We’re on a mission to re-balance the industry dynamics. To stop non-profits from spending a third of their time (£900m pa in the UK) filling in forms for grants, so they can focus on what they do best – changing lives & communities. We see a world where grant giving is transparent, quick, effective and impactful. Time to change and unblock this mess. Join us if you agree. PS - This is a feisty article. I’d welcome your comments. #GrantMakingUK #CommunityFundingUK #TechForGoodUK #CorporateGiving #UKFunding #CommunityGrants #ActionFunder #UKCharities
Mark Shearer, I welcome this post as there is nothing feisty about presenting the truth 😁 . Harnessing tech and systems for substituting manual work in these funding programmes only makes sense. We at whatimpact see the same labour-heavy management trend happening not only in grants, but in volunteering too. By this I mean, that the coordination effort and investment in volunteering programmes can be huge, but the outcomes of the volunteers deliver could be much more impactful. The times for highly paid lawyers picking up litter for a day should be over! #socialvalue is about maximising the resources and the impact of activities for the benefit of the people ❤️
I have been involved as Treasurer and Chair of a number of charities in recent years and the grant process is without doubt one of the most frustrating things about the job. The worst culprits are government and local authorities who announce funding initiatives without having thought through how they are going to get the money to the target communities. In March 2023 The. Chancellor announced £100 million to help the voluntary sector with issues around the energy crisis This was split between a scheme administered by National Lottery which gave money to charities to support people suffering from fuel poverty etc, this money was distributed over winter 2023/24 a further scheme for awarding grants to small charities to help reduce their energy costs was included but it was 9 months before DCMS announced they had appointed agents to manage the scheme. 11 months on after a protracted process we were told we were unsuccessful. Using an organisation like yours they could have shortcut the process getting the grants into charities hands while there was still a fuel crisis
Mark Shearer would be interested to read the original piece. Sounds like grant giving is on the cusp of a change. We see it all time time in property. So many 20th Century (generously) practises but the 21st Century tools are arriving thick and fast now. Nothing wrong with picking a fight if you’re doing it for the right reasons.
Social Value Director
2moIt’s the single greatest reason I left the voluntary sector. It is also the ability for larger charitable organisations to resource the grant process. If you don’t have a bid team or writer you don’t stand much chance of the ‘big pots’. The best work I ever achieved was with smaller localised organisations who were run by volunteers. It’s not the charity sector at fault either, they have to play the cards they are dealt and this is the system. Change is needed for sure, but how it’s achieved requires collective responsibility for acknowledging value for money and verification of outcomes.