Unrestricted funding

What is it? How and why do foundations offer it? How can charities ask for it?

What is unrestricted funding?

The terms ‘unrestricted funding’ and ‘core funding’ are often used interchangeably, but they aren’t the same. We use: 

Unrestricted funding to describe no strings funding that organisations can use for anything within their charitable objects. 

Core funding to mean grants restricted to either a specific element of overheads (for example, rental costs or the Director’s salary) or grants available to be used for essential running costs more broadly. 

Project funding to mean grants restricted to the delivery of a specific project or defined set of activities, often (but not always) including a percentage contribution towards general running costs.

Unrestricted funding is the single most powerful thing that funders can do to support charities. It enables us to be agile and decisive … while planning as best we can for whatever the future holds.

For charities

We don’t have any magic words for securing unrestricted funding, but we can share what it is, why it’s worth pursuing, and ideas that may be useful when considering how to make your case.

We are working with funders to adopt more open and trusting grantmaking practices including enabling flexibility – such as unrestricted funding – in the grants they make.

Webinar: Why and how foundations give unrestricted funding

For foundations

Download briefing: Making the case for unrestricted funding. Click here to access the download page for the briefing.
The holy grail of funding: Why and how foundations give unrestricted funding

Read our popular report on unrestricted funding which presents how 12 trusts and foundations approach common challenges, as told by trustees and senior staff.

Open Link
Evidence Review: Why restrict grants?

This review explores contrasting rationales for restricted and unrestricted funding – and whether they are substantiated by evidence.

Open Link
Making the case for unrestricted funding

Our briefing summaries the key points for foundation staff and Boards so that they can consider and the make the case for unrestricted funding.

Open Link

Perspectives on unrestricted funding

a profile picture - Nick Addington - William Grants Foundation
Two practical ideas to increase unrestricted funding

#FlexibleFunders

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Unrestricted funding: Where does it go and what difference does it make?
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Under the bonnet of unrestricted with Lloyds Bank Foundation for England and Wales and partners

Unrestricted funding in practice series

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Charity workers listening to a Cambodian family around a table, filling in a table on whiteboard paper. CCT logo.
Under the bonnet of unrestricted with Texel Foundation and partners

Unrestricted funding in practice series

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Ben Cairns
Charities need greater control over their own spending
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Reflections on ‘unrestricted funding’
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With thanks to Sport4Health and Damien Rosser/Eden Project Communities for the photos used on this page.

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