The UKGrantmaking 2024 report collates data and insight on over £20 billion of funding from across all funding sectors, using data from regulators, funder accounts and data published using the 360Giving Data Standard to provide an interactive platform for understanding grantmaking in the UK. We have summarised some of the report’s highlights.

Among the active grantmaking organisations, those distributing under £1 million annually constitute the majority (56%). This dominance of small grantmakers risks a fragmented approach where many organisations operate on limited means, potentially affecting their overall impact and efficiency in addressing community needs. It also makes it more difficult to understand their activity as most of these small grantmakers are exempt from reporting on their grant expenditure to the charity regulators.

One of the more alarming findings is the substantial reduction in grantmaking by National Lottery distributors and central government departments. The National Lottery had an overall reduction of 13% in grantmaking, from £2.7 billion in 2021-22 to £2.4 billion in 2022-23; a fall of 21% when adjusted for inflation. One of the main reasons for this decline was that Sport England's grantmaking decreased by over £420 million between financial years. That was due to a £600 million investment in five-year commitments made in 2021-22, which affected the overall grant distribution pattern.

Central government departments reduced their grantmaking from £4.1 billion to £3 billion (27%), equivalent to a one-third decrease in real terms.

In contrast, the largest 300 foundation grantmakers showed resilience, increasing their grant spending to £5.2m, a real term increase of 3%. These foundations, representing 93% of known grantmaking organisations and accounting for 31% of the total value of grants distributed, managed a 14% nominal increase in grant spending.

Approximately 2,000 UK grantmakers provide an estimated £400 million annually in grants to individuals. Notably, the largest 100 of these organisations granted £274 million, marking a 7% increase from the previous year, though this represents a real terms decrease of 2%.

There are 47 accredited community foundations, and they collectively increased their grantmaking to £175 million. This represents a real terms increase of 6%. These community foundations play a crucial role in supporting local initiatives and their giving ranges from £0.5 million to £23.4 million.

A significant challenge highlighted in the report is the disparity in grant distribution, particularly concerning charities registered in London. Data shows that 56% of grants received by London-registered charities are allocated to organisations operating exclusively in London. However, these London-only organisations receive just one-third of the total amount granted to all London-registered charities.

The report shows how challenging it is to fully understand the geographical impact of grantmaking as the data does not show clearly where the grant funded work is being delivered.

In summary, while the report highlights positive trends among major foundations and community foundations, it raises concerns about the declining contributions from key funding sources. Addressing these issues is vital for strengthening the overall impact and effectiveness of grantmaking in the UK.

• Click here to read the full report