Today, we delve into the often under-appreciated world of core cost funding, its unique benefits, and why it is so vital for the health and longevity of non-profit organisations.
We have all heard the phrase, "Money makes the world go round." But in the world of charitable organisations, the money that keeps the wheels turning, the lights on, and the staff paid - what we call 'core costs' - is just as crucial as the funding that is tied directly to specific projects. While they serve different purposes, both are equally crucial to the long-term sustainability and impact of non-profit organisations.
Core cost funding can contribute significantly to the sustainability of the organisation. A reliable stream of core cost funds ensures that the “going concern” aspects of the organisation – staff salaries, infrastructure upkeep, and essential equipment – are adequately maintained. This financial stability allows the non-profit to focus more on executing its mission rather than worrying about keeping the lights on.
There is a benefit to non-profits proactively searching for core cost funding. One of the most significant advantages is the inherent flexibility this type of funding offers. Unlike project-specific grants, which come with stringent usage stipulations, core cost funding carries fewer restrictions. This flexibility allows non-profits to allocate funds where they are most needed, enabling them to respond to emerging challenges or opportunities more effectively.
The increased impact of core cost funding can also enhance the quality of the projects undertaken by the non-profit. With the basic operating costs taken care of, non-profits can direct more resource towards the project initiatives themselves. This means better planning, and ultimately, more impactful project outcomes.
On Brevio, we found that there are more than 450 live, core cost funding needs totalling £236,508,197 being searched for on the platform.
The importance of core cost funding becomes even more pronounced as we navigate the post-COVID era. The pandemic has underscored the need for resilience and adaptability in the third sector. Core cost funding, with its inherent flexibility and contribution to organisational stability, can be a crucial lifeline for organisations still working to recover from the pandemic and continue their valuable work.
It’s important to Brevio that we work with grant-makers to ensure there are plenty of core cost funding opportunities available for our non-profit organisations. Currently on Brevio there are more than 615 live grants supporting core costs, ranging from £100 to £5,000,000 in award amounts. The total amount of funding available is an impressive £682,325,325.
It's essential not to overlook the necessity of core cost funding when there are grant-makers out there looking to be more sustainable with their grant-giving.
By identifying multiple funding needs for your projects and ensuring you also include a core cost funding need, you present a comprehensive picture of your organisation's financial needs. This approach makes your non-profit more appealing to grant-makers who are not interested in just funding projects, but also in supporting the organisation's overall mission.
Keep us up to date with your successful grant applications and tell us about your experience with receiving core cost funding, email firstname.lastname@example.org