Core funding for charities: what it covers and how to apply

Core funding supports the costs of keeping a charity running, rather than only a separate project. It can help with premises, bills and the overall staff budget: these are examples in Garfield Weston Foundation's explanation of operating/core costs. To apply well, identify a funder that supports organisational running costs, show what those costs enable, and explain how the rest of your budget will be covered. Do not assume that “core” means the grant has no spending restrictions.

Core funding or project funding: which request fits?

Start by describing the need in one sentence. “We need to keep our advice service operating next year” points towards an organisational funding request. “We want to run a six-month outreach pilot” describes a defined project. Use the funder's categories when deciding which route to take.

Project funding can include some shared running costs. For example, the National Lottery Community Fund's Strengthening Organisations cost guidance allows a share of overheads such as rent, insurance and management or administration salaries. It describes this as full cost recovery. That is different from asking for a contribution towards the organisation's general operations.

If you are costing a particular project, our full cost recovery guide explains how to allocate shared costs. If you need support across the charity, prepare an organisation-wide budget first. Do not invent a new project simply to give an existing running cost a more attractive name.

Does core funding mean unrestricted funding?

Not necessarily. Garfield Weston explicitly avoids calling its core grants unrestricted: they cannot be used for endowments or to build reserves. Its guidance also distinguishes support towards the overall salary bill from funding an individual post. These are that foundation's conditions, not rules for every core grant.

Before drafting, make a short “allowed / excluded / unclear” list from the funder's current guidance. Check the period covered, permitted cost categories and any limits on how the money can be used. If a condition is unclear, ask a specific question: “Would a contribution towards our total staff costs be eligible, or does this programme only fund staff delivering the proposed activity?”

When an offer arrives, compare its terms with the request you submitted. Record the actual spending conditions alongside the award, rather than relying on the word “core” in your fundraising spreadsheet.

How to find a funder for running costs

Use search terms such as “core costs”, “operating costs” and “general running costs” alongside your cause and location. On OpenGrant's charity and community grant search, shortlist opportunities, then read the funder's own cost and eligibility guidance. A broad charity-funding category is a starting point, not confirmation that rent or salaries qualify.

For each candidate, record:

• Whether it supports your organisation type, location and work.
• Whether general operations qualify, or only costs linked to a specified project.
• The budget period and evidence requested.
• Any exclusions that affect your request.
• Where you checked the guidance and what still needs clarification.

The named funders in this guide illustrate different approaches to costs; they are not a shortlist of awards you are eligible for. For a broader search process, see how to find charity grants that fit.

Explain what the running costs make possible

A useful core-funding request connects the organisation's work, its costs and its income plan. Try this structure:

1. Purpose: who you support and the work you intend to sustain during the funding period.
2. Costs: the total operating budget and the categories relevant to the request.
3. Contribution: how much you are asking for and what it would support.
4. Other income: what is confirmed, what is forecast and what is still being sought.
5. Remaining gap: what you will do if other applications are unsuccessful.

This is a suggested drafting structure, not a universal application requirement. Replace “support our sustainability” with something concrete: keeping a weekly advice session staffed, retaining accessible premises or maintaining the booking system used by volunteers. Explain the connection without pretending every shared cost belongs to one activity.

Use your evidence of need to explain why the work matters. Keep the financial request equally specific: a list of bills alone does not explain what your charity will deliver.

Worked example: a request towards annual operating costs

In this fictional example, a small advice charity plans £80,000 of expenditure over twelve months. That comprises £50,000 for staff, £15,000 for premises and utilities, £5,000 for insurance, IT and administration, and £10,000 for service materials and volunteer expenses.

It has £60,000 of confirmed income available for this budget and forecasts £8,000 from donations. It asks a suitable funder for £6,000 towards general operating costs and plans to seek the remaining £6,000 elsewhere. The figures reconcile: £60,000 + £8,000 + £6,000 + £6,000 = £80,000. Only the first £60,000 is confirmed.

The application should show those different levels of certainty. If donations reach only £5,000, the plan has an additional £3,000 gap. The charity should explain its response to that possibility, rather than describe all anticipated income as secured.

Before using this approach, check that each income source can support the costs assigned to it and that the same spending is not being claimed twice. The £6,000 request is illustrative; it is not a recommended award size or a statement about any named funder's limits.

Before you submit a core-funding application

Read the request once for meaning and once for numbers. Can someone unfamiliar with the charity understand what continues if the grant is awarded? Do the budget dates, total expenditure, funding request and income plan agree?

• Use the same period throughout the budget and narrative.
• Separate confirmed income from estimates and pending applications.
• Explain significant changes from your previous operating budget.
• Resolve questions about permitted costs before submission.
• Keep the submitted budget and guidance with your application record.

For the rest of the submission, use our grant application checklist. A clear core-funding case says what the organisation needs, what the contribution would support and how the wider budget will work.