How to raise funds from charitable trusts and foundations in 2025

Fundraising from charitable trusts and foundations has always been a competitive process, but in the current climate, it’s becoming even more challenging with an increasing number of funders closing their grant rounds and shifting strategies. Economic uncertainty, rising inflation, and shifting priorities among funders have created significant obstacles for charities seeking support.

Why is it so difficult and what can we do?

1. Economic uncertainty and reduced trust funds Many trusts and foundations rely on investment income to fund their grant-making activities. With economic volatility, market fluctuations, and high inflation, these income streams have been significantly reduced. As a result, many trusts have tightened their funding criteria, reduced grant amounts, or temporarily paused new funding altogether.

   
   

2. Increased competition for limited funds The economic downturn has also increased demand for charitable services across the UK. More charities are applying to trusts and foundations, leading to heightened competition. Trusts that once funded a wide range of causes are now focusing on fewer, more urgent priorities, making it harder for organisations to secure grants.

   
   

3. Shifts in funding priorities In response to the cost-of-living crisis and other societal challenges, many trusts have shifted their funding priorities. Causes related to poverty relief, food security, and mental health are receiving more attention, leaving other sectors such as arts, culture, and environmental projects struggling to secure funding.

Three suggestions

1. Research and target the right trusts

It sounds simple but focussing on trusts and foundations that align closely with your mission and current project needs is always the best approach! Tailoring your applications to demonstrate a strong fit with their funding priorities will increase your chances of success.

2. Strengthen impact reporting

Funders want to see measurable outcomes. Develop clear, data-driven impact reports that show how previous grants have made a difference. This builds trust and confidence in your ability to deliver meaningful results.  Case studies and quotes can also demonstrate real impact.

3. Diversify income generation

It’s always best to have a diverse portfolio of income streams.  Exploring other income streams such as individual donations, corporate partnerships, or trading opportunities. A diverse funding base will make your organisation more resilient in uncertain times.

If you would like an informal discussion on how we can help.  Please don’t hesitate to get in touch.