DSC’s Researcher, Kalli, speaks with Rachel McGrath, CEO of Northamptonshire Community Foundation, to explore the power of place-based philanthropy, the overlooked needs of rural communities, and what applicants can do to write a good funding bid.
With the latest edition of the Directory of Grant Making Trusts (DGMT) available to buy, we sat down with Rachel McGrath, CEO of Northamptonshire Community Foundation (NCF), a funder featured in the guide, to discuss her team’s experiences of being a place-based grant-maker. Her perspective broadly reflects the experiences of the UK Community Foundations’ network.
What is ‘place-based’ philanthropy?
Placed-based philanthropy focuses on the communities local to the funder. All members of the UK Community Foundations work with a range of stakeholders based in their respective areas to develop solutions that address systemic inequalities, such as rural poverty.
Rachel outlines how important place-based funding is. “It reaches all corners of a locality. We have been established in Northamptonshire for nearly 25 years so we know the local sector well. We cover every postcode of Northamptonshire.
NCF is at the forefront for small charities or community groups that may lack access to national funding. Thanks to collaboration with other local institutions, we collect data that leads conversations about needs, which in turn influences where funding goes.”
In 2023, NCF produced a report about rural poverty in Northamptonshire. How is it addressing this issue?
NCF’s report, available here, highlighted funding gaps that need addressing, also demonstrating to other organisations where attention is needed.
Rachel discusses how NCF acted upon its research.
“With the support of the Constance Travis Charitable Trust, we established Rural Community Needs Fund grants programme, which looked at issues like isolation and community transport.
We are also member of the UK Rural Philanthropy Group, alongside other community foundations, national funders and rural representatives.”
Why do you think that funders overlook rural areas?
Rachel believes that the biases in how we measure poverty is partly responsible.
“Urban areas are a primary concern of the Index of Multiple Deprivation*, so rural areas end up being ignored. Rural deprivation is then left unaddressed. Thankfully, there are lots of specialist rural grant-makers that cover this gap, for example The Royal Countryside Fund.
Of course, we, and other local community foundations, do not just support rural communities. Our network meets the needs of residents in all areas.”
*The Index of Multiple Deprivation measures relative deprivation across areas of the UK,
How can funders support rural communities?
Rachel tells us that there are several ways.
“Funders can convene community conversations to listen to the needs of local groups and charities operating within rural communities, ensuring they can better deliver their services.
Project visits are another way to monitor and improve impact. Plus, you can create impact reports to develop a positive feedback loop between donors, grant-makers and funded organisations.
It is important for funders to foster relationships between donors and local funded organisations for long-term trust and collaboration.”
How do you set up a fund with a community foundation?
NCF works with a range of donors, both public and private. This includes individuals, families and corporate organisations.
Rachel says that prospective donors should contact the foundation’s team, which supports donors throughout the process of establishing a fund. They handle governance, due diligence, administrative and legal requirements so donors can focus on philanthropy.
“We also help donors to invest funds, meaning that donors can be assured that their philanthropy will help solve local issues in perpetuity, beyond their lifetime. In fact, local community foundations are building their own endowments to ensure funding for the next generation of community champions!”
What makes a good funding bid?
Rachel gives some excellent advice.
“Initially, chat with your local community foundation to confirm your project is a good fit. Don’t waste your time shoehorning your project into unsuitable applications!
When you get to writing your bid, don’t overfocus on your charity’s mission and/or values. Demonstrate local knowledge and experience, and a clear framework on how you will use the funding to benefit the local community. Your work should fill a funding gap and not duplicate local services. Your bid should also answer the following questions:
- Why does your charity/project exist?
- Who does your charity/project support?
- Why are you applying for the funding?
- When will your project run?
- Where in the world does your charity benefit?
- How will your charity/project use any secured funding to achieve its aims?”
- She also adds that the bid should be simple and that the budget should reflect the overall description of the project, clarifying anything that looks out of place.
Each local community foundation has an online application process. Check out NCF’s resources to help applicants write bids, here!
What do you think about the use of AI in writing funding bids?
Rachel recognises that AI may level the playing field because not all charities have fundraisers or may not speak English as first language.
“We have an AI policy in place, an AI working group and we are about to review the use of AI in funding applications. We don’t plan to reject applications that have used AI, but we are considering advising applicants to be cautious, which would follow the National Lottery Community Fund’s suit. As a network, local foundations can share examples of good practices with each other.”
Thank you to Rachel for taking the time to provide an invaluable insight into place-based philanthropy, and for her advice to potential applicants! You can find out more about the NCF on their website.