Trusts and Foundations: A funding stream under pressure

Funding from Trusts and Foundations has become increasingly competitive in recent years, with many funders “overwhelmed” by increased demand. A sharp rise in applications has seen some funders pause funding programmes to deal with application backlogs and others raise concerns about unsustainable levels of demand.

But what has prompted this situation? Increased competitiveness can, in part, be attributed to the consistent decline in local government funding over the last decade and the cost-of-living induced difficulties faced by individual donors. In a funding landscape where local government support for arts and culture has decreased 29% in Scotland, 40% in Wales and 48% in England from 2009/10 – 2022/23 and the number of individuals donating to charity fell below 50% for the first time since 2016, it is perhaps unsurprising that Trusts and Foundations are seeing application numbers rise.

However, it is not just the funders that are suffering because of this current context. The situation is also creating obvious problems for charities themselves. Indeed, for some, it would not be an exaggeration to say accessing Trust and Foundation funding is feeling increasingly like a lottery.

So, what can be done to support both the charities and funders impacted by this situation?

This article will examine funding success rates and waiting times to assess how charities can be better supported by funders and how improved communication can serve both funders and charities alike.

Applications on the rise

With charities across the sector finding fundraising a struggle, Trusts and Foundations are facing exceptionally high application numbers. This saw the City Bridge Foundation announce that it would pause grantmaking for a year due to an “unprecedented surge” in demand and was followed by the Schroder Charity Trust’s decision to pause all grantmaking in September 2024, stating “the volume of applications has increased to an unsustainable level”.

Whilst necessary to provide some breathing space, these pauses place increased pressure on the funders that remained open. This has exacerbated the problem of high application rates, and success rates at some of these funders are now increasingly low - 4% in the case of the Jerwood Charitable Foundation, 14% at the John Ellerman Foundation, and 18% at the Henry Smith Charity.

The situation may be even more challenging for new applications specifically. In the Gifted Philanthropy “2025 Trusts and Foundations Insights Survey”, it was reported that for new funding applications (where the charity had not received support from the funder before) the average success rate was 24.5%, much lower than the 63% success rate stated for repeat applicants. In researching 44 Trusts and Foundations, Cause4 found an average success rate of 22% for all types of application. Whilst not quite ‘lottery levels’ of unlikely, these figures are nevertheless illustrative of a highly challenging situation.

The long wait for a decision

The uncertainty caused by low success rates can be exacerbated by long or unclear waiting times. Cause4 found that the average waiting time for a result was over three months in the 44 funders we researched. This could increase to as much as seven months, as seen in the case of the City Bridge Foundation, which has seen increased applications slow down processing.  

For charities facing difficulties in recruiting fundraising staff (something identified in the Private Investment in Culture Survey as a particular problem for small arts organisations) long and uncertain waits for hotly contested funding are hard to manage.

Ideally, charities need long-term funding strategies which spread applications and income across multiple streams. If recruiting or retaining staff is proving a struggle - or the organisation is contending with one of the other myriad issues affecting the sector - this can be easier said than done. Gifted Philanthropy supports this argument in its 2025 survey findings, noting that 43.55% of respondents said funders taking longer to confirm a grant was the biggest challenge in the Trusts and Foundations Fundraising sector today.

Charities kept in the dark

Perhaps even more concerning than the long wait times is the number of funders that do not specify a timeframe. In our research, Cause4 found that 20 of the 44 charities investigated (45%) did not list a timeframe in which applications would be reviewed and applicants informed of a result. Whilst for several funders this lack of information was due to the fund not maintaining a website (perhaps an issue in itself) for others this information could simply not be found on the website. For charities looking to reach out to new funders, this is important information to have readily available, as it will shape fundraising strategy and planning over the course of a year.

A similar story emerged when we researched the publication of success rates. Across the 44 funders, only 43% gave information on what chances an applicant would have of receiving funding. This lack of information makes it difficult for charities to plan and could well be causing an uneven distribution of funding applications, with charities unaware of their chances of success at different funders.

What can be done?

Communication is key to dealing with these issues and can benefit both funders and applicants. Where possible, Trusts and Foundations should regularly communicate via their websites to update prospective applicants on wait times, chances of success, and future plans. This information will inform fundraising strategies and reduce the risk of funders becoming inundated with applications at a time they are unable to deal with them effectively.

This communication will also help charities. More information will lead to better planning and strategy work, allowing charities to both avoid funders currently facing heightened demand and direct their attention and applications to areas where they stand a better chance of success.

For charities today, understanding the competitiveness of the Trust and Foundation landscape is an important part of developing or executing any fundraising strategy. The table below provides a snapshot of success rates for funders across the sector and charities would be well advised to identify how success rates and turnaround times might impact their own fundraising.

Where possible, charities should also seek to contact funders – especially those not displaying success rates or waiting times – to better inform where they make applications and how they use their time and resources most effectively.

To download and view the research we conducted, click here