Esmée Fairbairn Foundation’s Insights on core funding analyses the importance of this type of funding in a detailed review of their performance in grants.
Core funding is money for central running costs which enables organisations to meet their needs and priorities on their own terms. Core funding can include:
- staff salaries, training, expenses, rent and other overheads
- fundraising costs
- monitoring and evaluation
- communications and digital innovation
Core grants can be restricted (eg to UK-based work, or the CEO’s salary), or unrestricted (used freely for anything within the organisation’s charitable objects, including for reserves). Project grants are restricted to the aims and delivery of a specific piece of work, usually time-limited, and may be shared with more than one organisation.
You can see the full report here!