The Charities Aid Foundation (CAF) has set up a £3m fund for small charities working to improve social equity in their communities.
Around 120 charities will receive grants between £5,000 and £50,000, with an average grant of £25,000.
The Keystone Fund will award unrestricted grants towards the core costs of running a charity, strengthening capacity, or building resilience.
Half of the available funds will be focused on organisations supporting refugees in the UK, and local charities across the UK are encouraged to apply for the new fund if they are addressing social injustice or working towards social equity to create a fairer society.
The deadline for charities to express their interest for the first round is 23 November 2022.
Grant funds must begin to be spent within six months of grant payment, but can be carried forward into the following financial year if required to enable flexibility. They should be fully spent within 24 months of grant payment.
CAF will also provide resilience building tools and information to put organisations into a stronger position for future work.
Neil Heslop, chief executive at CAF, said the current cost-of-living crisis shows how small charities provide a lifeline to the most vulnerable in our communities across the UK.
He said that at the same time, their ability to respond is threatened due to their own rising costs and depleted reserves following the pandemic.
“The Keystone Fund focuses on local organisations working towards social equity to build a fairer society for all. We know that charities are best placed to decide how to deploy funds, and many will need to focus on their core costs at this challenging time,” he said.
“We hope these new unrestricted grants will help strengthen small charities as keystones in their communities and continue to help those who need it most.”