News & Insight
24th October 2024
Trusts and Foundations
At our last Philanthropy Company network meeting, Senior Consultant Liz Purchase looked at changes in the world of UK charitable trusts and foundations, and what this might mean for fundraisers.
There have been some big changes recently in the trusts and foundations landscape. Not least the headline grabbing decision by the Lankelly Chase Foundation to close after 60 years as a key UK grant-making foundation. Their view, that the traditional philanthropy model is failing to generate a more just society, has seen them make this radical decision. They are now on a “transition pathway” to redistribute all their assets and close within a five-year timeframe. As yet we don’t know how they will practically distribute their endowment. But what is certain, is that small charities, community projects, and grass roots organisations will now have one less prospect to consider. Lankelly Chase is not the only grant funder evolving; the City Bridge Foundation recently put a freeze on its grant programmes, and the
Tudor Trust remains closed. All three have been ‘go to’ funders for prospect researchers for many years due to their size and stature; and trust fundraisers who had them in their sights could be forgiven for experiencing frustration.
These three cases may be outliers, or a sign of things to come; either way, grant making by charitable trusts in the UK remains valuable and important. There are around 10,000 operating today, and new ones being established every year. Although many site pressures caused by higher application volumes, a total of £6.41 billion was made in grants in 2022-2023 (as reported by the Association of Charitable Foundations ‘Foundations in Focus’ 2024). The ACF also reports that more foundations began supporting core costs last year, an area typically hard to fundraise against.
For arts and heritage, a focus on trusts is fundamental to a strong development department. Good news then that the National Lottery Heritage Fund’s (NLHF) relatively new 10 -year strategy ‘Heritage 2033’ has a simplified approach to decision making, and more flexibility for applicants. They have increased the top end of grants to £10million (double the previous £5million threshold), and a total National Lottery investment of over £1billion by 2026/2027, the first three years of the strategy. Although a public funder, a bid to the NLHF usually sits with trust fundraising teams, alongside approaches to major funders like the Garfield Weston Foundation.
In 2023 the Garfield Weston Foundation awarded a total of over £91million in grants; and in 2024, they announced 12 further regional museums would receive a Weston Loan. This brilliant scheme (in partnership with the Art Fund) saw grants awarded across the UK, including to Petersfield Museum and Art Gallery for their exhibition about Peggy Guggenheim, a giant of twentieth century arts philanthropy herself.
Another major funder of the arts is the Julia and Hans Rausing Trust; after the sad passing of Julia Rausing earlier this year, the Trust announced that it will be simply known as the Julia Rausing Trust to honour her memory. It will double the average annual amount given under the old trust, to £100million. Although we lost other major UK philanthropists in recent years (Sir John Sainsbury in 2022, Sir Jack Petchey in 2024), generous philanthropic giving by families and individuals through trusts and foundations, is alive and well. The skills of trusts fundraisers, be that in-house staff or consultants, will continue to be in demand as challenging times unfold.
At the Philanthropy Company, we have a lot of experience in trusts and foundations fundraising. We have secured grants for many capital campaigns, learning programmes, and community projects. If you are a charity, arts organisation, or heritage site looking to approach trusts and foundations, please give us a call to explore how we can help.
If you are interested to find out more, then please email us at enquiries@philanthropycompany.com
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