For the first time one of the country's biggest funders will help charities with core costs
One of the country’s biggest funders has responded to the cost of living crisis and has announced it will fund charities’ running costs for the first time.
Children In Need, the BBC’s flagship fundraiser, raised £51 million last year and said alongside traditional project costs it would fund organisations' core costs in a bid to help them “keep their doors open".
Charities have been increasing pressure on government and charitable foundations to pay core costs long before the pandemic in a bid to change the funding landscape as running costs have increased.
Those with premises are facing huge financial challenges as business users have uncapped energy contracts and running costs are spiralling out of control.
The funder said that providing more flexible funding was part of a plan to help charities during the cost of living crisis with awards covering management and administration, general office costs, accountancy and audit, fundraising and governance and compliance costs.
This means charities will for the first time be able to apply to fund traditional back office functions and administration.
Children in Need’s other new stream, emerging grants, will launch in spring 2023 aimed at newer charities that the organisation may not have funded before.
This funding will allow project costs, core costs or both.
Fozia Irfan, director of children and young people at Children in Need, said: “This is a critical time for children and young people, who have faced many life-defining changes over the last few years.
“As a leading funder for children and young people, we have a responsibility to ensure that the funding donated each year to us reaches those most in need.”
A Children In Need spokesperson added: “We know that the coming months are set to be a time of deepening challenge and crisis for children and young people, and having listened to the sector and our grantees we know that acting flexibly and providing grants for core costs will help projects across the UK hugely, including supporting projects keep their doors open, meet their rising costs, keep their spaces warm, and respond to increased demand.”