CIC Grants & Funding: Complete Guide to Funding Your CIC

Grant Funding

Money you don't have to pay back. Usually for specific projects or purposes.

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

Trading Income

One of the biggest advantages of being a CIC vs charity — you can trade commercially.

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

Social Investment

Loans and investment designed for social enterprises.

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

Donations

CICs can receive donations, but note:

• • No Gift Aid — unlike charities, you can't reclaim tax
• • Some donors prefer giving to charities for tax reasons
• • Corporate donations may be structured as "sponsorship" instead

Contracts

Public sector and corporate contracts for delivering services.

• • Council contracts
• • NHS contracts
• • Housing association partnerships
• • Corporate CSR partnerships

1. Have Strong Governance

• Get 3+ directors — Many funders look at governance as a sign of credibility. 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 processes.

See our CIC Directors guide for more on governance.

2. Demonstrate Community Benefit

• Show evidence of need — Use data, surveys, consultation findings to prove demand.
• Track your impact — Record what you do and who benefits. Funders want numbers.
• Gather testimonials — Stories from beneficiaries are powerful in applications.

3. Have Charitable Purposes

Even though you're not a charity, having purposes that would qualify as charitable makes 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, make this clear in applications.

4. Match the Funder's Priorities

Don't waste time applying to funders whose priorities don't match your work.

• Read guidelines carefully
• Check who they've funded before
• Contact them to check eligibility before applying

5. Build Relationships

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

Option 1: Partner with a Charity

Find a charity with aligned purposes. Have them lead the grant application while you deliver the work as a "delivery partner". Funds flow through the charity to you. This is common and funders generally accept it.

Option 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 — many will say yes.

Option 3: Focus on CIC-Friendly Funders

Don't waste energy on funders who definitely won't fund you. Prioritise National Lottery programmes, community foundations, and corporate funders.

Option 4: Consider Converting to Charity

If you're consistently losing out on funding because of CIC status, it might be worth converting to a CIO. But don't do this lightly — CIC status has advantages too. See our CIC vs Charity guide.

Can CICs apply for National Lottery funding?

Yes. National Lottery Community Fund explicitly funds CICs through Awards for All, Reaching Communities, and other programmes.

Do CICs have less access to funding than charities?

Somewhat. Some traditional trusts only fund charities. But the majority of funders — especially lottery programmes, community foundations, and corporate funders — include CICs. The gap is narrowing.

Can CICs receive donations?

Yes, but you can't claim Gift Aid on donations (only charities can). Some donors prefer giving to charities for tax reasons.

Should I become a charity instead of a CIC for better funding access?

Only if the funding difference is significant for your situation. CICs have advantages too — simpler governance, ability to pay directors, faster setup. Consider both carefully.

How much funding can CICs typically get?

Ranges from a few hundred pounds (small local grants) to hundreds of thousands (National Lottery, major trusts). Most CICs access funding in the £1,000-£50,000 range.

How many grants should I apply for?

Quality over quantity. A few well-researched, tailored applications will outperform many generic ones. Aim for a pipeline of 5-10 active applications at any time.