CIC Grants & Funding: Complete Guide to Funding Your CIC

Money you do not have to pay back, usually for a specific project or purpose.

• Project grants: the most common type
• Core funding or unrestricted grants: rarer, but available
• Capital grants: buildings, equipment, vehicles
• Start-up grants: for new organisations

One of the biggest advantages of a CIC over a charity: you can trade commercially without restriction.

• Selling products or services
• Contracts with councils and the public sector
• Social enterprise trading
• Membership fees

Loans and investment designed for social enterprises.

• Social investment finance (loans at favourable rates)
• Community shares (for CICs limited by shares)
• Crowdfunding
• Impact investors

CICs can receive donations, but note:

• No Gift Aid: unlike charities, you cannot reclaim tax on donations (see do CICs pay tax?)
• Some donors prefer giving to charities for tax reasons
• Corporate donations may be structured as "sponsorship" instead

Public sector and corporate contracts for delivering services.

• Council contracts
• NHS contracts
• Housing association partnerships
• Corporate social responsibility partnerships

Each programme has its own "who can apply" rules, including minimum numbers of unconnected people on your board and in control of the bank account. Read that page before you start writing.

Two other lottery distributors also fund CICs for the right projects: The National Lottery Heritage Fund (heritage projects from £10,000 up to multi-million awards) and Arts Council England (project grants and National Portfolio funding; CICs eligible for most programmes).

• Community foundations. A network of community foundations across the UK, each managing multiple grant programmes for its area. Most fund CICs. Find yours at ukcommunityfoundations.org.
• Local councils. Many councils run community grant programmes, councillor discretionary funds and specific pots for youth, arts, environment and so on. Check your council's website.
• Local voluntary sector support. Your local CVS (Council for Voluntary Service) or equivalent will know about local funding. Search "[your area] voluntary sector support".

• Charity Excellence Funding Finder: free database with filters for CICs
• Grants Online: searchable database of UK grants
• Community Foundations: check your local foundation's current programmes
• Government finance and support finder: includes social enterprise funding
• Your local CVS: most publish a funding newsletter
• CIC Tools grant browser: open UK grants that accept CICs, filtered by what your CIC does

• Set up alerts for new funding opportunities
• Follow funders on social media
• Join local voluntary sector networks
• Sign up for funder newsletters
• Check who funders have previously supported

• Have more than one director. Legally a CIC needs only one, but many funders treat a board of three or more unconnected people as a sign of credibility, and some lottery programmes set a minimum. Single-director CICs often struggle to get funded.
• Have diverse skills on your board: finance, legal, sector expertise, lived experience.
• Keep records: board minutes, policies, clear decision-making.

See our CIC directors guide for more on governance.

• Show evidence of need: data, surveys and consultation findings that prove demand.
• Track your impact: record what you do and who benefits. Funders want numbers.
• Gather testimonials: stories from beneficiaries are powerful in applications.

Even though you are not a charity, purposes that would qualify as charitable make you more fundable. Charitable purposes include:

• Relief of poverty
• Advancement of education
• Advancement of health
• Community development
• Arts and culture
• Environmental protection

If your CIC's purposes are charitable in nature, say so clearly in applications.

Do not waste time applying to funders whose priorities do not match your work.

• Read the guidelines carefully
• Check who they have funded before
• Contact them to check eligibility before applying

• Attend funder events
• Ask for feedback on unsuccessful applications
• Thank funders and keep them updated on progress
• Treat funders as partners, not cash machines

This is frustrating, but there are workarounds:

1. Partner with a charity. Find a charity with aligned purposes. They lead the application and you deliver the work as a "delivery partner". Funds flow through the charity to you. This is common and funders generally accept it.
2. Ask anyway. Some "charities only" policies are outdated and not enforced. Contact the funder: "We're a CIC with charitable purposes. Are we eligible?" You might be surprised.
3. Focus on CIC-friendly funders. Do not waste energy on funders who definitely will not fund you. Prioritise lottery programmes, community foundations and corporate funders.
4. Consider converting to a charity. If you are consistently losing out because of CIC status, converting to a CIO might be worth it. Do not do this lightly: CIC status has advantages too. See our CIC vs charity guide.

1. Answer the question. Read what they are asking. Answer that, not what you wish they had asked.
2. Be specific. Vague answers lose to specific ones. Not "we will help young people in our community" but "we will deliver 40 weekly youth sessions reaching 120 young people aged 13 to 19 in Salford".
3. Show evidence of need. Local statistics, survey results, consultation findings, waiting lists.
4. Explain your track record. What have you already achieved? Why should they trust you to deliver?
5. Be realistic about costs. Break down your budget clearly. Include staff time and overheads. Do not underbid or overbid.
6. Demonstrate sustainability. Funders do not want to create dependency. Show how the work continues after their funding ends.
7. Proofread. Typos suggest carelessness. Get someone else to check before you submit.

Do not rely solely on grants. The strongest CICs have several income streams:

• Trading. Can you sell products or services? This is sustainable, unrestricted income.
• Contracts. Check Contracts Finder and local council procurement portals.
• Membership. If it fits your model, membership fees provide regular income.
• Social investment. For growth capital, look at Big Issue Invest, Social Investment Business and Key Fund.

CICs can and do access significant grant funding. The key is knowing where to look and presenting your organisation well.

• The National Lottery Community Fund and many trusts fund CICs
• Local community foundations are often the best starting point
• Strong governance and evidence of impact improve your chances
• Do not rely solely on grants: diversify your income
• The trend is positive, with more funders including CICs every year

Funding takes time and effort, but it is very achievable.