How to design a community grants programme

Community grants are relatively small amounts of money, often hundreds or thousands of pounds, given to local people and groups. They’re sometimes called community pots or community chests. They can fund new ideas, help new groups get started and support activities that respond to local needs. A community grants programme sets out what you’ll fund, who can apply and how you’ll decide.

Only ask for information you’ll use, write in plain English and accept applications in different formats, such as video or pitching at an event. Think carefully before asking small or new groups for a constitution. Publish clear timescales, support first-time applicants, invite groups to test your process and give feedback to unsuccessful applicants.

This guide from Local Trust and the Institute for Voluntary Action Research (IVAR) sets out seven things to think about when designing or updating a community grants programme. They run from agreeing what difference you want your grants to make to measuring change meaningfully. Each section ends with questions to discuss with your grants committee or at a community meeting.

It draws on action research with four Big Local partnerships: Hateley Cross, Kingsbrook and Cauldwell, Rastrick, and Roseworth. It also includes examples from other areas, such as Radstock and Westfield’s annual “Dragons’ Den” event, where residents vote on which local ideas receive funding.

This guide will be useful to community groups, partnerships and community organisations that give out small grants, whether you’re setting up a programme for the first time, relaunching one or checking an existing programme still fits your priorities.

• Defining the purpose and priorities of your grants
• Understanding local needs and mapping what already exists
• Reaching people and groups who haven’t applied before
• Taking measured risks with a proportionate process
• Supporting applicants and funded groups
• Designing a simple, accessible application process
• Making fair, transparent decisions and handling conflicts of interest
• Involving residents in decisions, such as through a pitching event
• Measuring change without overburdening funded groups