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Trusts expect to cut grants in 2011, survey finds

Fundraising | Tania Mason | 2 Jun 2009

Many grantmaking trusts expect to maintain budgeted levels of spending in 2009-10 but most predict lower income for grantmaking in 2011 and beyond, according to a recent survey of UK trusts and foundations.

Members of the Association of Charitable Foundations took part in the survey, the results of which were presented to a recent London Funders conference by Clare Thomas, chief grants officer at City Bridge Trust and chair of the Association of Charitable Foundations.

Thomas said it was impossible to generalise about foundations as their resources and their investment policies were too varied, but the survey had provided a good snapshot of current circumstances and expectations.

She said many would be able to maintain spending in 2009-10 at originally budgeted levels, but a majority was predicting lower income for grantmaking in 2010-11 and beyond - until markets recovered.

These were some of the findings presented at the conference:

• 80 per cent of investments had decreased since June 2008
• 47 per cent of grants budgets for 2010 will remain at the same level
• 42 per cent of grants budgets would decrease but not very significantly
• 27 per cent of respondents might change their grants policy as a result of the recession
• Some said they would not take very much risk and instead of allocating all grants at the start of the year they would release smaller amounts as the year progresses.

Thomas also called for the grantmaking community to re-open the debate with government over reinstating the Advanced Corporation Tax Credits which had been lost inadvertently in 2002, a move that would provide a little more income for the sector.

Trusts provide around 10 per cent of the sector’s total income.

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