Government funding for not for profit organisations: UK public funding opportunities

Government funding for not for profit organisations is a crucial pillar of financial stability for UK charities, community interest companies (CICs), and voluntary groups. In 2025, public funding streams are evolving rapidly, with new national and local programmes supporting social inclusion, health, climate action, and community development. For many organisations, securing government grants can mean […]

While the UK offers a wide range of funding opportunities—from central government schemes and local authority community funds to National Lottery programmes—the application landscape can feel fragmented and competitive. Smaller grassroots organisations in particular may find it difficult to navigate complex eligibility criteria, tight deadlines, and reporting obligations.

Understanding where to find government funding, how to apply strategically, and how to maintain compliance once grants are awarded is essential for building a sustainable funding strategy. This guide will walk you through:

Key UK government grants for charities, including national and local opportunities.
Community funding programmes and small grants for nonprofits that are ideal for grassroots organisations.
Major funders like the National Lottery Community Fund and thematic schemes for health, wellbeing, and rural development.
Eligibility criteria, application tips, and compliance obligations.
Strategies for securing multiyear funding and aligning with Charity Commission guidance.

By the end of this article, you’ll have a clear roadmap to identify, apply for, and manage government funding opportunities that fit your organisation’s mission and scale. And if you want expert support along the way, our team at NGO Finance Hub specialises in ngo financial management, ngo finance courses, and financial management for NGOs training—helping nonprofits secure and manage funding with confidence.

UK Government Grants for Charities: Overview of Available Funding Streams

Government funding for not for profit organisations in the UK comes from a variety of public bodies, each with different priorities, eligibility rules, and funding cycles. Understanding these streams is the first step to identifying opportunities that align with your organisation’s mission.

What government funding options are available for not for profit organisations in the UK?

UK government funding for charities and nonprofits is delivered through several key channels:

Central Government Departments: Departments such as the Department for Culture, Media and Sport (DCMS), the Department for Environment, Food & Rural Affairs (DEFRA), the Department for Levelling Up, Housing and Communities (DLUHC), the Department of Health and Social Care (DHSC), and UK Research and Innovation (UKRI) regularly issue calls for proposals and grant competitions. These grants often fund nationwide programmes in areas like digital inclusion, community regeneration, climate action, and cultural development.
Devolved Administrations: Nonprofits in Scotland, Wales, and Northern Ireland can access additional funding streams through their devolved governments. These programmes often reflect regional priorities such as rural innovation, language and culture preservation, or health initiatives.
Local Authorities: Councils across England, Scotland, Wales, and Northern Ireland offer grants to local voluntary and community organisations. These typically support projects that improve community wellbeing, deliver local services, or enhance neighbourhood infrastructure. Many councils publish annual community funding rounds, sometimes linked to Levelling Up funding allocations.
Lottery-Linked Public Funds: Although technically separate from government departments, bodies like the National Lottery Community Fund distribute public money raised through the lottery system. These funds are among the most significant sources of nonprofit funding in the UK and often complement government priorities.

Types of government funding for not for profit organisations are available

Government funding for not for profit organisations can take different forms, and understanding these distinctions helps organisations plan strategically:

Capital Grants: Support for physical infrastructure such as buildings, renovations, vehicles, or equipment.
Revenue Grants: Funding for ongoing operational costs, salaries, or project delivery.
Project-Specific Funding: Targeted towards defined programmes with clear outcomes.
Multiyear Funding: Long-term support, often for established organisations with proven impact.

Advantages of government funding for not for profit organisations

Unlike corporate donations or short-term charitable grants, government funding for not for profit organisations is often larger in scale, more predictable, and aligned with national priorities. For charities and community groups, successfully accessing these funds can enable transformational projects—whether that’s building new community hubs, delivering national health campaigns, or scaling innovative social programmes.

However, competition is high. Applications must be well-structured, evidence-based, and compliant with funder guidance. Establishing robust financial systems through ngo financial management and targeted financial management for NGOs training significantly improves the chances of success.

Community Funding Programmes and Small Grants for Nonprofits

Community funding programmes and small grants play a crucial role in supporting local charities, voluntary associations, and grassroots initiatives. While large national programmes often grab the headlines, it’s these smaller, more accessible funding streams that help thousands of UK not for profit organisations launch new projects, sustain core services, and engage directly with their communities.

How can nonprofits access small grants and community funding schemes?

Local Authority Community Funds:
Most local councils across the UK run annual or rolling community grant schemes aimed at improving neighbourhood wellbeing, tackling local issues, and supporting volunteer-led initiatives. These grants typically range from £500 to £10,000, making them ideal for small charities, community interest companies (CICs), and informal voluntary groups. Examples include borough-level health and wellbeing funds, arts and culture microgrants, and environmental improvement schemes.

Shared Prosperity Fund Allocations:
Under the UK Shared Prosperity Fund (UKSPF), councils and combined authorities have been allocated resources to support local priorities. Many have launched community partnership programmes focusing on skills, inclusion, youth services, and infrastructure. Nonprofits can access this funding either directly or by partnering with local delivery bodies.

Levelling Up Community Programmes:
Some areas benefit from Levelling Up or Town Deal funding streams, which include allocations for community and voluntary sector projects. These programmes typically fund activities that align with economic development, place-making, or community cohesion goals.

Integrated Care Board (ICB) Funding:
In the health sector, local NHS Integrated Care Boards often release grants for voluntary and community sector organisations working on prevention, wellbeing, and health equity. These programmes are particularly important for small organisations delivering hyper-local services that reach underserved populations.

Why small grants matter

Small grants are often easier to apply for, with simplified eligibility requirements and shorter decision timelines. This makes them a powerful entry point for newer or volunteer-run organisations that may not have the capacity to compete for large national funding rounds. They can be used to fund pilot projects, purchase essential equipment, train volunteers, or run community events.

Best practices for accessing community funding

Monitor Local Authority Websites: Councils often post funding opportunities on their “community funding” or “voluntary sector support” pages.
Engage Early: Many small grants favour organisations that have established local relationships. Attend council meetings, network with local funders, and build visibility.
Align with Local Priorities: Tailor your application to show how your work supports the council’s strategic goals, such as social inclusion, health equity, or environmental improvement.
Demonstrate Impact: Even small grants require clarity on outputs and outcomes. Use simple metrics, case studies, or testimonials to illustrate your impact.

For many organisations, success in local small grant programmes builds the track record and credibility needed to move on to larger national government funding. Investing in ngo financial management systems and grant readiness through financial management for NGOs training helps ensure funding is both secured and well-managed.

National Lottery Community Fund: A Major Source of UK Nonprofit Funding

When discussing government funding for not for profit organisations, one name stands out: the National Lottery Community Fund (NLCF). As one of the UK’s largest funders of charitable and community activity, the NLCF distributes over £500 million annually to thousands of projects across England, Scotland, Wales, and Northern Ireland. Although the money comes from lottery ticket sales rather than taxes, the fund operates in alignment with public policy priorities, making it a critical pillar of the UK’s nonprofit funding ecosystem.

What is the National Lottery Community Fund and how does it support nonprofits?

The National Lottery Community Fund provides grants to organisations that help improve communities and the lives of people within them. It funds a wide variety of projects, from grassroots volunteer initiatives to multi-year national programmes. Its funding priorities focus on themes such as:

Health and Wellbeing: Supporting mental health, community health services, and social care innovation.
Environment and Climate Action: Helping communities reduce emissions, adapt to climate change, or improve green spaces.
Social Inclusion and Equity: Tackling inequality, supporting marginalised groups, and promoting cohesion.
Community Empowerment: Strengthening local networks, building resilience, and enabling communities to shape their future.

Core National Lottery programmes for 2025

Awards for All:
Small grants of £300 to £10,000 for grassroots community projects. Ideal for pilot initiatives, events, or capacity-building.

Reaching Communities:
Larger grants for organisations delivering longer-term, transformative projects. Funding can support staff costs, activity delivery, and organisational development, often for multiple years.

Partnerships Funding:
Designed for collaborations between multiple organisations working toward shared goals. This stream encourages cross-sector partnerships and innovation.

Each programme has its own application process, but they share a common emphasis on community involvement, demonstrable need, and long-term impact.

Tips for applying to the National Lottery Community Fund

Engage Your Community: Applications that show clear community consultation and involvement score higher.
Focus on Outcomes: Clearly explain the difference your project will make, not just what activities you’ll run.
Be Realistic: Funders value honest budgeting and achievable objectives over grand but vague promises.
Prepare Your Governance: Make sure your governing documents, bank details, and policies are in order before applying.
Demonstrate Sustainability: Show how your project will continue to deliver impact after the funding ends.

Why this fund is important

For many charities, National Lottery funding provides a bridge between small local grants and larger central government contracts. It offers both accessibility—through Awards for All—and stability, via multi-year Reaching Communities grants. Successful bids can transform organisational capacity, enabling nonprofits to scale their impact significantly.

Strengthening your organisation’s financial infrastructure through ngo financial management and financial management for NGOs training can give your applications the competitive edge needed to secure this prestigious funding.

Covid-19 Recovery, Rural Schemes, and Thematic Government Grants

In addition to mainstream grant programmes, the UK government continues to support targeted funding streams that address specific social and economic challenges. These include Covid-19 recovery funding, rural development schemes, and thematic grants for health, wellbeing, and climate action. For many not for profit organisations, these targeted funds represent critical opportunities to sustain and expand their impact in 2025.

Are there specific funding programmes for Covid-19 recovery and social inclusion?

Although the peak of the pandemic has passed, its long-term effects are still being addressed through dedicated funding programmes. Government bodies and local authorities have set aside funds to help voluntary and community organisations rebuild capacity, modernise operations, and reach vulnerable groups affected by the crisis.

Examples include:

DLUHC Covid-19 Recovery and Levelling Up Grants, supporting community centres, advice services, and local hubs.
NHS Charities Together recovery grants, funding community health and mental wellbeing programmes.
Local resilience funding, aimed at helping small organisations digitise services or adapt to hybrid delivery models.

These funds often prioritise organisations working in health, housing, food security, and community outreach — sectors hit hardest by the pandemic.

Rural funding schemes

Rural areas face unique challenges such as transport limitations, digital exclusion, and declining community infrastructure. Recognising this, the UK government has continued rural funding schemes under initiatives like:

DEFRA’s Rural England Prosperity Fund, which provides capital grants to improve community facilities, local enterprise, and green spaces.
Levelling Up Rural Funds, which focus on infrastructure, connectivity, and sustainable local development.
Community Ownership Fund, allowing rural communities to take control of assets such as pubs, post offices, and community halls.

These programmes are especially relevant for charities and community groups working in remote regions where private funding sources are limited.

How does government funding support health, wellbeing, and environmental projects?

Health and wellbeing continue to be central government priorities. The NHS and local Integrated Care Boards (ICBs) frequently release funding opportunities for community health partnerships, mental health support, and preventative services.

Similarly, environmental and climate-related grants are expanding. DEFRA, UKRI, and Lottery-funded bodies support projects that reduce carbon emissions, restore nature, or increase community resilience to climate change. Nonprofits working in these fields are well-positioned to secure thematic government grants by demonstrating clear outcomes and alignment with national strategies.

Advantages of thematic grants

Thematic and recovery-focused funding streams are often less crowded than general grant programmes, making them excellent opportunities for well-prepared nonprofits. These funds also tend to focus on real-world impact, rewarding organisations with clear outcomes, measurable results, and strong governance.

To capitalise on these opportunities, nonprofits should invest time in mapping their activities to relevant government priorities and ensuring their internal systems meet funder standards. Strengthening capacity through ngo financial management and financial management for NGOs training can be the decisive factor in winning these competitive grants.

Eligibility Criteria for Accessing Government Grants

Before applying for government funding for not for profit organisations, it’s essential to understand the eligibility criteria that public funders apply. These criteria ensure that grants are awarded to organisations with appropriate governance, legal standing, and financial systems to manage public money responsibly. Meeting these requirements early on can dramatically improve your organisation’s chances of success.

What eligibility criteria apply for accessing government grants?

Although each funding programme has its own rules, there are several core eligibility requirements that most UK government grant schemes share:

Legal Structure:
Your organisation must usually be a registered charity, community interest company (CIC), charitable incorporated organisation (CIO), or properly constituted voluntary group. Informal groups may be eligible for small community grants but will need a written constitution and named bank account.
Bank Account:
You must have a bank account in the organisation’s name, with at least two unrelated signatories. This ensures transparency and proper financial oversight.
Governing Documents:
Most funders will ask to see your constitution, articles of association, or other governing documents that set out your charitable or community objectives.
Financial Records:
Depending on the size of the grant, you may need to provide recent annual accounts, management accounts, or a simple budget forecast. Larger grants typically require audited or independently examined accounts.
Public Benefit Alignment:
Funders assess whether your work aligns with the public benefit requirements outlined by the Charity Commission. Your objectives should be clear, non-political, and focused on measurable community impact.
Policies and Compliance:
Many programmes require proof of safeguarding policies, equal opportunities policies, health and safety procedures, and insurance coverage (particularly public liability insurance for events and services).

Additional eligibility considerations

Some schemes have geographic restrictions, such as only funding organisations within certain local authority boundaries or rural areas. Others may focus on specific thematic areas like health, climate action, or social inclusion. It’s important to read the eligibility criteria thoroughly before applying—many applications fail simply because the project doesn’t match the funder’s focus.

For multi-year or large-scale grants, funders may also examine your track record of delivery, governance structure, and risk management procedures. Demonstrating a stable financial position through proper bookkeeping and reporting is key.

Preparing your organisation to meet eligibility standards

Nonprofits can strengthen their eligibility by:

Keeping governance documents up to date and aligned with Charity Commission guidance.
Maintaining clean, accurate financial records using proper accounting systems.
Regularly reviewing policies to ensure they meet legal and funder standards.
Investing in financial capacity-building through ngo financial management and financial management for NGOs training.

Taking these steps well before funding rounds open will make applications smoother, reduce the risk of rejection, and allow you to focus on crafting compelling proposals rather than scrambling for paperwork.

Applying for Government Funding UK: Best Practices and Common Pitfalls

Once your organisation meets the eligibility requirements, the next challenge is submitting a high-quality application. Government funding for not for profit organisations in the UK is competitive, but well-prepared charities and community groups can significantly improve their success rates by following structured application strategies.

How should not for profit organisations apply for government funding?

The application process typically follows these key stages:

Identify the Right Opportunity:
Start by using official portals such as Gov.uk Grants and Funding, local authority websites, and major funder platforms like the National Lottery Community Fund. Make sure the funding priorities match your mission and planned activities before investing time in applying.
Read the Guidance Thoroughly:
Each funding programme has its own guidance notes. These documents outline eligibility, funding priorities, timelines, required documents, and evaluation criteria. Many failed applications are the result of not following this guidance precisely.
Plan Your Application Strategically:
Strong applications are not written overnight. Build a timeline that allows for internal review, gathering evidence, and developing a clear budget. Assign responsibilities within your team to avoid last-minute rushes.
Tell a Clear, Impactful Story:
Funders want to understand the problem, your solution, and the impact your project will deliver. Avoid jargon and focus on real outcomes. Use statistics, testimonials, and case studies to demonstrate need and effectiveness.
Prepare a Realistic Budget:
Government funders scrutinise budgets carefully. Break costs down clearly, justify each item, and make sure your figures align with your project plan. Overinflated or vague budgets are a common reason for rejection.
Submit All Required Documentation:
Missing financial statements, policies, or governing documents can automatically disqualify an otherwise strong application. Use a checklist to ensure every attachment is complete and up to date.

Common pitfalls to avoid

Applying for the Wrong Fund: Submitting applications to programmes that don’t match your mission or project type is a waste of time and resources.
Vague Objectives: Funders want measurable, tangible outcomes, not broad or generic statements.
Ignoring Deadlines: Late submissions are usually not accepted under any circumstances.
Weak Governance or Finances: Even strong project ideas can be rejected if the organisation doesn’t demonstrate financial control and accountability.
One-Off Applications: Successful organisations often build relationships with funders, attend briefings, and maintain ongoing communication.

Strengthening your application capacity

Investing in internal financial and administrative capacity pays off. Organisations that maintain good records and have clear internal procedures can focus their energy on telling their story rather than firefighting compliance gaps.

Through ngo financial management systems and specialised ngo finance courses, nonprofits can develop the skills needed to consistently produce winning applications that meet government funder expectations.

Reporting, Accountability, and Multiyear Funding Opportunities

Securing government funding for not for profit organisations is only the first step. To maintain funding relationships and remain eligible for future rounds, UK nonprofits must comply with reporting and accountability requirements. This ensures transparency, builds funder trust, and opens the door to multiyear funding opportunities that provide long-term financial stability.

Reporting and accountability requirements for UK government funding

Government funders expect clear, timely, and accurate reporting. Key obligations typically include:

Progress Reports: Many programmes require quarterly or mid-term reports detailing project milestones, outputs, and outcomes.
Financial Reports: Grantees must provide evidence of how funds were spent, often through itemised expenditure breakdowns and audited or independently examined accounts.
Impact Measurement: Organisations are asked to demonstrate how funding has improved community outcomes, using measurable indicators such as participant numbers, engagement metrics, or environmental impact data.
End-of-Grant Evaluations: At the close of a funding period, a comprehensive report summarising achievements, challenges, and lessons learned is usually required. Some funders may also conduct site visits or independent evaluations.

Failing to meet reporting deadlines or submitting incomplete information can lead to penalties, repayment of funds, or being blacklisted from future funding rounds.

How can smaller grassroots organisations secure multiyear funding?

While most small community groups rely on short-term project grants, multiyear funding can transform their capacity to deliver sustainable impact. To qualify for these opportunities:

Demonstrate Strong Governance: Funders look for clear leadership structures, financial oversight, and well-defined roles.
Show Consistent Results: Track record matters. Organisations that can demonstrate effective delivery over multiple projects are more likely to be trusted with longer-term commitments.
Develop Strategic Plans: A solid 3–5 year plan shows funders that your organisation is future-focused, with realistic growth projections.
Build Relationships with Funders: Engage proactively with funding officers, attend briefings, and seek feedback after unsuccessful applications. Personal relationships often play a role in securing repeat or extended funding.
Strengthen Financial Management Systems: Reliable accounting and reporting infrastructure — such as those taught in financial management for NGOs training — reassures funders that their money will be managed responsibly.

The Charity Commission’s role in accountability

The Charity Commission provides extensive guidance on financial accountability for charities receiving public funds. Compliance with their frameworks — including filing annual returns, following SORP standards, and maintaining up-to-date governance documents — is essential for maintaining eligibility and avoiding regulatory issues.

Multiyear funding as a sustainability strategy

Securing multiyear government funding allows nonprofits to move away from constant grant-chasing and focus on strategic delivery. It provides stability to retain skilled staff, plan ambitious programmes, and build deeper community partnerships. By investing in sound financial systems and transparent reporting, your organisation can become a trusted partner for public funders year after year.