Small charities facing ‘broken’ funding systems, NCVO report warns
· Posted on: May 19th 2025 · read
A new report by the National Council for Voluntary Organisations (NCVO), The Power of Small, reveals that small charities are struggling with inadequate and unstable funding systems.
Over 300 charities with an income under £1 million were surveyed. The main concern identified was funding, particularly the lack of core, unrestricted, and long-term financial support. The report criticises short-term funding cycles for causing instability and accuses funders of favouring larger charities.
Key issues highlighted include:
- Power Imbalances & Lack of Representation: Many small charities feel excluded from major funding and policy decisions, with 78% saying they are not adequately represented.
- Emotional Strain: Leaders report stress, burnout, and even suicidal feelings due to financial instability and lack of support.
- Practical Barriers: Charities struggle to access useful resources and training, especially those in rural areas, which report fewer funding opportunities than urban groups.
Recommendations for funders and Government
Not for Profit
Read more about Not for ProfitRead moreThe report sets out a number of recommendations for both funders, including central and local Government:
- Reform public procurement to be more accessible for small charities.
- Increase the length and flexibility of grants.
- Simplify funding application and reporting processes.
- Improve support systems, including hybrid (online and in-person) models.
- Ensure small charities are meaningfully involved in policy and funding discussions.
