About trust funding

Charitable trusts and foundations are bodies set up to do good. Money – capital – is invested and the income is spent each year. Trustees are responsible for the money and for how it is given away.

Charitable trusts in Britain give away between £1 billion and £3 billion a year. They get tax concessions on their money because they are 'charitable' – the Inland Revenue has to be satisfied that they use their income for purposes that are charitable in law. In practice this means that most trusts will only give assistance to registered charities.

Many trusts are limited in terms of the geographic area they can make grants to.

Trusts don't have to publicise what they do, what sort of things they give money for, how to apply – or even that they exist at all. Some are very open about what they do, some are less so.

Many trusts meet only once or twice per year. Applicants may need to submit their documentation well in advance of meetings.

Some trusts have websites with an application form. Other smaller trusts will ask applicants to write a letter explaining why they need the funding and how it will be used. These letters should appear as though they have been written personally, and not as a circular. For charities that do not have a website, it is worth checking to see if they have accounts published on the Charity Commission website. The accounts can provide useful information on the number of grants awarded, to whom and the amount.

Applicants should ensure they have information on the trusts they intend to approach which is as accurate, up-to-date and comprehensive as possible. It is a waste of energy and effort to write the wrong letter to the wrong funders and trusts are understandably frustrated when they receive applications from projects that fall outside their remit.

Applicants may wish to contact their local Council for Voluntary Service and charities advice agency who can help or give advice to groups about writing funding applications and costings. They may also run training sessions or have information about training courses in the local area.