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One thing I like best about my job is hearing from fund-seeking organisations about the ways they'd like funders to adapt, change and improve - crucial insights for me!
In return, I share info and trends about foundations
Here are a few things that seem to surprise/interest
In return, I share info and trends about foundations
Here are a few things that seem to surprise/interest
In the UK (unlike most jurisdictions) there is no legal or regulatory definition of a 'foundation' or 'funder'
First and foremost, foundations are registered charities, regulated by the charity regulator in the relevant jurisdiction (the UK has three) and relevant charity law
First and foremost, foundations are registered charities, regulated by the charity regulator in the relevant jurisdiction (the UK has three) and relevant charity law
@ACFoundations defines foundations as "charities with private, independent and sustainable income that fulfil their purposes by funding or otherwise supporting individuals or other organisations"
The core of ACF’s membership is drawn from grant-making trusts. However, increasing numbers are becoming involved in other types of activity, especially research, policy and influencing work, as well as social investment
Most foundations support the voluntary sector, but they are not restricted to funding charities
Some fund universities, research, education, and individuals, as well as public and private sector bodies
Their task is to find the best way to deliver their own charitable purposes
Some fund universities, research, education, and individuals, as well as public and private sector bodies
Their task is to find the best way to deliver their own charitable purposes
Their annual spending power is small, about 0.4% of UK government spend, but foundations often punch far above their weight
Unlike public sector funding bodies, foundations can take risks, offer long-term support and back causes that may otherwise struggle to gain attention
Unlike public sector funding bodies, foundations can take risks, offer long-term support and back causes that may otherwise struggle to gain attention
Crucially, unlike most other types of funder, charitable foundations can work independently of political time-scales, free from short-term market cycles, and counter to received wisdoms
This allows them to respond creatively to immediate need as well as take a long-term approach
This allows them to respond creatively to immediate need as well as take a long-term approach
Each foundation, as an independent charity, has its own charitable purposes, governance arrangement, board of trustees, geographical remit, areas of interest, resource level and lines of accountability
No single foundation is the same as another, even if they have much in common
No single foundation is the same as another, even if they have much in common
Their sources of income are also unique to that charity
Some fundraise from others, some have an endowment that they can use flexibly, while some have money locked by law in investments that only provide an income if shares perform well
Some fundraise from others, some have an endowment that they can use flexibly, while some have money locked by law in investments that only provide an income if shares perform well
A record number of foundations were set up as charities in 2020 (around 1,700), while some pre-date the Magna Carta
Some have living benefactors, others are governed by a board of trustees made up of descendants
Many are set up by a private company that sets a budget each year
Some have living benefactors, others are governed by a board of trustees made up of descendants
Many are set up by a private company that sets a budget each year
There are several thousand grant-making charities in the UK
The top 300 give around 80% of all the grants each year
But just 20 foundations are responsible for more than half of this grant-making
The top 300 give around 80% of all the grants each year
But just 20 foundations are responsible for more than half of this grant-making
All this pluralism is one of the best qualities of the foundation sector - a kaleidoscope that enables support to reach causes as varied as prison reform, choral music, genome research, migrant rights, school halls, legal action, and much more!
It also makes generalising tricky
It also makes generalising tricky
I hope these insights might be of use
Thanks for reading!
If you have any additional ideas please drop me a line
Thanks for reading!
If you have any additional ideas please drop me a line
