What is core funding?

Core funding is a grant that pays for the costs of running an organisation as a whole rather than for one time-limited project. Those costs include management and finance staff, rent, insurance, IT and the governance of the charity, which Garfield Weston Foundation's guidance describes as operating or core costs. It is the kind of funding that keeps services going between projects.

Why it matters when applying. Project grants rarely cover the whole cost of a project, let alone the organisation around it, so a charity that relies on them alone runs a structural deficit. Core funding closes that gap, but fewer funders offer it, and those that do assess the organisation rather than the project. On 26 October 2026 Garfield Weston accepted core cost applications all year; City Bridge Foundation offered five-year core and flexible grants of £150,000 to £450,000 to London organisations with income of £50,000 to £1.5 million through its Economic Justice programme, closing 3 November 2026; the Tudor Trust said multi-year core grants were usual, though it works by invitation; and the Steve Morgan Foundation's regional grants of £250,000 to £500,000 covered salaries, project and core costs over three years. Core funding for charities explains how to frame the request.

Core, unrestricted and full cost recovery. Core funding is about what the money pays for. Unrestricted funds are about what the trustees may legally spend it on. Full cost recovery is the budgeting method that adds a fair share of core costs to every project grant, so that project funders carry their share of the overheads. A pipeline needs all three; see how to build a trust fundraising pipeline.

Example. A fictional advice charity with income of £400,000 raises £300,000 a year in project grants. Its overheads are £90,000. If each project budget recovers 20% overheads it covers £60,000, and it seeks a core grant for the remaining £30,000 from a funder that states it funds running costs.