31. March 2026

Is Charity Funding Rigged? (And What Smaller Charities Can Do About It)

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In my last newsletter I wrote about funding feeling fragile. But sometimes, funding doesn't just feel fragile. It feels uneven.

You'll have seen the claims on social media. Figures like "the top 5–10% of charities receive 95% of all income" get shared regularly, usually without a clear source. That exact statistic is hard to pin down. But the underlying point isn't wrong.

Data from organisations like the UK Civil Society Almanac and the Charity Commission for England and Wales show that a relatively small number of large charities receive a disproportionate share of total sector income. Meanwhile, the majority of charities operate on much smaller budgets — held together by a handful of grants, some donations, and a lot of goodwill.

So yes. Funding is concentrated. But it isn't closed.

Why does money keep flowing to the same organisations?

Funding doesn't just follow need. It follows confidence.

When a funder reviews an application — sometimes consciously, often not — they're asking two questions. Can this organisation deliver what they're promising? And can they handle the money responsibly?

Larger charities tend to answer those questions more easily. They have dedicated fundraising staff. They produce detailed impact reports. They've built relationships with funders over years, sometimes decades. They already look safe.

Smaller charities, on the other hand, are often doing extraordinary work — but with limited time, stretched systems, and not enough capacity to package that work in a way funders recognise. That's not a criticism of those organisations. It's just how the system works.

The opportunity — and yes, there is one

If funding follows confidence, then the question for smaller charities isn't: how do we get bigger? It's: how do we become clearer, more consistent, and easier to trust?

That's a more manageable problem. And it's one most organisations can make real progress on without doubling their staff or overhauling everything they do.

Six practical ways to become more fundable

1. Make it easy to say yes

If a funder has to work hard to understand what you do, they're less likely to fund you. Be clear about who you are, who you help, and what will change as a result of your work. Not in three pages. In three sentences.

2. Show you can handle money

You don't need complex systems. But you do need basic confidence builders: regular financial tracking, clear oversight, and awareness of your numbers. A simple monthly report and a named finance lead puts you ahead of more organisations than you might expect.

3. Start smaller than you think

One of the most common mistakes I see is jumping straight to large grants. Apply for smaller funds first. Build a track record. Use those wins to strengthen the next application. Momentum matters more than ambition at the early stages.

4. Borrow credibility

You don't have to do everything alone. Partner with another organisation. Highlight relevant trustee or volunteer experience. Reference past projects, even informal ones. Confidence can be built collectively — and funders understand that.

5. Tell better stories

Not longer stories. Better ones.

"We support vulnerable people in our community" tells a funder very little. "We worked with 15 families this winter, providing weekly meals and practical support. One parent told us it was the first time they'd sat down to eat together in months" — that lands. Specifics build trust in a way that generalities never can.

6. Be consistent, not occasional

Fundraising isn't something you do when money runs out. It's something you build into the rhythm of your organisation — regular applications, ongoing communication, steady relationship-building. Consistency beats urgency, every time.

A final thought

It's easy to look at the funding landscape and conclude it's stacked against smaller charities. In some ways, it is. But it isn't impenetrable.

The gap is rarely size. It's structure, clarity, and confidence — and those are things you can work on, whatever stage you're at.

Smaller charities don't need to become large organisations to be fundable. They need to become easier to understand, easier to trust, and easier to back.

That's well within reach. If you'd like to think through what that looks like for your organisation, get in touch.

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