Cost of living

We know many foundations, while perhaps concerned themselves about falling income and asset values, are acutely aware that charities they fund are feeling the impact of the current cost of living, such as:

• a potential fall in donations at a time when other income sources are under pressure

• finding that the real value of their income is dropping against inflationary pressures of running their organisations

• finding need and demand on their services rising - for some, at unprecedented levels.

We have collaborated with other sector infrastructure bodies through our membership of the Civil Society Group to highlight the impact of rising costs on the charity sector. Earlier this year we were delighted to see the Chancellor’s announcement in the Spring Budget of £100m support for charities that need it most and are helping those most affected by the cost of living increases.

 

On this page you can find resources and information to help trusts and foundations think about how best to consider questions and priorities around the cost of living crisis.

Guidance and resources for funders

Sector events

• Society Watch 2023: The Price We Pay – the social impact of the cost of living crisis, Thu 6 Jul, 9.30am-1pm, central London. Watch here

ACF blogs

• June 2023 - a blog from the Funders Collaborative Hub on how we can build a funding ecosystem to support warm places
• February 2023 - a blog by Francesca de Munnich, head of policy (interim), on how foundations and charities can work together effectively during this cost of living crisis
• December 2022 - a blog by Francesca de Munnich, head of policy (interim) on foundations and the cost of living in Charity Finance magazine 
• October 2022 - a blog by Francesca de Munnich, head of policy (interim) on The mini-budget - what does it mean for foundations?
• September 2022 - a blog by Carol Mack, chief executive, about the Cost of living and foundations

 ACF events

• Tackling inequalities through the Living Wage, 20 April 2023, online - Watch now how the Living Wage Funder scheme can help tackle low pay in the charity sector (attendees sent a passcode. If you need one, please email [email protected]).
• New Prime Minister, same challenges? 8 December 2022
  Members' Policy Forum event looking at current challenges

Manage financial difficulties in your charity arising from cost of living pressures Charity Commission guidance and resource 

Cost of living  crisis: tagging  grants, 360Giving (threesixtygiving.org) and guidance on tagging grants

Cost of living news and resources, London Funders 

 

What funders are doing

Funders Collaborative Hub

ACF hosts the Funders Collaborative Hub, which offers increased understanding, closer alignment, and opportunities for funder collaborations. For example:

• Lightning Reach Collaborative online grants portal for people in financial hardship
  
  
• Teaching Support Staff are seeking collaboration to respond to rising demand: Assisting school staff in a financial crisis
  
  
• Funders Forum Northern Ireland on cost of living - a position statement  setting out members' commitments to support communities and organisations affected by the cost of living crisis
  
  
• The Living Wage Funders network is seeking to expand and deepen its work to tackle low pay and in-work poverty in the third sector.

 

Search the Hub for new collaboration opportunities or add a new collaboration opportunity yourself.

 

Other funder responses:

• The Household Hardship Fund is a £1 million fund provided by The National Lottery Community Fund and administered by Corra Foundation
  
  
• Esmée Fairbairn Foundation is committing an extra £7.4m to organisations they fund who are being affected by rising costs
  
  
• The National Lottery Community Fund has published the first review of its cost of living funding and throughout March 2023 is hosting a series of online events looking at how its projects are developing community-led responses to cost of living concerns.
  
  
• Trust for London has created a London Cost of Living Tracker on its website.

 

Joint statement by charity and civil society bodies to the next PM coordinated by NCVO and ACEVO, September 2022

Creation of Civil Society Group to increase collaboration, improve efficiency, effectiveness and streamline engagement

City Bridge Trust to help charities in London with up to £3.5 million to help them cope with the impact of rising prices, Sept 2022

 

Wider civil society activity and resources

Cost of living resources page, ACEVO

Cost of living resources page, NCVO

Cost of living hub, Charity Finance Group (CFG)

The Cost Crisis: a gendered analysis by the Women's Budget Group

Cost of living special: Third Force News, Scotland

Confronting the cost of living crisis: NPC

Joint letter from infrastructure groups, including ACF, to Business Secretary Grant Shapps about continued energy support to the charity sector.

Energy Bills Discount Scheme to come into effect on 1 April 2023, and background