Trends in Trust & Foundation Fundraising
Julian Lomas
The 2025 Trusts and Foundations Insights survey from Gifted Philanthropy provides a rich source of information about Trust and Foundation fundraising.
The headlines in most of the sector press were about the findings that 70 per cent of fundraisers said their portfolio of trusts and foundations prospects had shrunk compared with previous years and 82% said that higher competition was the major barrier for fundraisers seeking grants from trusts and foundations.
This reflects the experience of almost all our clients. Success rates appear to be falling for many clients and more and more funders are temporarily (or permanently) closing their funding programmes due to more demand than they can cope with. The survey backs this up finding that 78% of fundraisers agree that more funders no longer accept unsolicited applications and there has been a dramatic rise in applications for small grants (up to £5k); an issue cited by some trusts and foundations a reason for the closure of their programmes.
What we find just as interesting is the data on success rates. The survey reports a total average success rate of just under 36%, which feels much the same as it has for years. However, the success rate for repeat funding reported through the survey is much higher, at just over 63%, while the success rate for new/cold applications was only 24.5%. The survey report also finds that success rates fall off sharply the more applications a charity submits.
These findings strongly reinforce the advice we have been giving in our blogs for years, in particular that charities should stay focussed on what works and nurture existing donors. Applications to existing and recent funders are much more likely to succeed. Moreover, applications to new funders are more likely to be successful if they are carefully tailored to that funder, with a high quality bid that really helps your charity stand out. There is usually little merit in rushing a bid or spending time on speculative bids, particularly when your proposal is not central to the funder’s priorities (and many are narrowing their focus).
If you would like to know more about the services we offer or to discuss your fundraising needs further please contact us.