Section 1. Policy Statement

The vision of UStSC is for a united and thriving Southwark with strong, inclusive and equal communities.

The Community Investment (CI) programme supports this vision by providing grants and related activities that help build stronger, fairer and better-connected communities.

The CI programme is overseen by the Community Investment Committee, a sub-group of our Board of Trustees.

We take an open, supportive and relationship-based approach to all our Community Investment work, because we believe partnership and trust are the foundation for positive change in Southwark.

Section 2. Principles

This CI policy aligns with the following:

  • IVAR ‘Trusted and Open’ Principles – designed to make funders more understanding and responsive to the challenges faced by community and voluntary organisations.[1] These are: don’t waste time, don’t ask unnecessary questions, accept risk, act with urgency, be open, enable flexibility, communicate with purpose, be proportionate.
  • A recognition that reducing structural inequities and power imbalances in Southwark shapes who, how and what we fund. We acknowledge the power imbalance between funders and applicants, and we recognise that there is not a level playing field across the community and voluntary sector.

Section 3. Definitions

Community Investment (CI) covers a range of activities including grant-making, partnerships, capacity-building, connecting organisations, fundraising, research, and influence.

Grant-making is when we provide financial support to organisations whose work helps achieve our Community Investment vision.

The term ‘funded partner’ refers to organisations that receive a grant from us.

Open-access grants programmes are open to eligible organisations and based on competition, usually annually or twice a year.

Strategic grants or Issue Based Partnerships are invitation-only, developed with UStSC staff involvement, and may be awarded outside the regular grant rounds.

Area of Benefit is the London Borough of Southwark.

 

Section 4. Budget

The CI budget is set each year and reflects the funds we have available from the surplus generated by the charity’s investments, local need, and available reserves.

The overall CI budget is approved by our Board of Trustees, with guidance from the Community Investment Committee on how it is allocated across different activities.

Section 5. Our Vision and Strategic Aims

5.1 Our Vision and priorities

Our vision is determined by Trustees on the basis of research and analysis of local community need and opportunities. Our vision is in line with our 5-year Community Investment strategic plan, and will be reviewed every 3 years, unless particular circumstances arise which demand more frequent review.

Our 2025–2030 Community Investment Strategic Plan aligns with Southwark Council’s 2030 strategy, reflecting its three guiding principles: reducing inequality, empowering people, and investing in prevention.

Our vision is that by 2035, community organisations and initiatives will be connected and supported to build power, tackle inequity and effect change as part of a thriving eco-system within Southwark

Our current priorities are:

  • Equity: Fair access through tailored or targeted support to achieve equal outcomes
  • Empowerment: Building autonomy, self-determination, and acting on one’s own authority
  • Prevention: Addressing problems early, before they become more serious or costly. Helping people belong and feel safe, healthy, and happy for longer

5.2 Strategic Aims

As per our 2025–2030 Community Investment strategy, our goals are:

  • Better and more resources – we co-shape a funding landscape that’s collaborative, transparent and fit-for-purpose
  • Community organisations have the resilience, resources, relationships, and relevance to tackle inequity
  • We are accountable, showing the impact of community funding and learning jointly about our collective future

Section 6. Grant-making

6.1 Eligibility

Our grants can be applied for by local community organisations working to make Southwark fairer and more inclusive.

Eligible groups include:

  • registered charities, CICs, social enterprises, non-profit companies (normally Companies Limited by Guarantee), faith-based organisations (where activities are not specifically religious), constituted community groups, and Tenants and Residents groups.
  • A minimum of three directors/trustees or management committee members is necessary.

Preference goes to organisations that are local organisations who do all or most of their work in Southwark, particularly those that are based in the borough.

Organisations based outside Southwark are eligible only for funded activity that directly benefits people in Southwark and must have good local knowledge and connections.

Those not eligible for regular UStSC grants include:

  • Individuals
  • For-profit companies
  • Local authorities
  • Food banks
  • Public bodies

Activity not eligible for funding includes purely religious, party-political, or animal welfare activities.

In certain circumstances, the CI Committee can consider and make exceptions on those eligible/ not eligible for funding as long as this aligns with the charity’s charitable objectives/restrictions.

6.2 Nature of Grants / Eligible Expenditure

Funding can be used to support revenue, core, and capital costs, including projects, services, events, advocacy, community organising, and research.

The types of grants we award include:

  • Core grants – funding that helps cover the essential running costs of your organisation, such as staff, governance, and income generation.
  • Unrestricted grants – funding you can use for any activity that falls within your organisation’s charitable purpose.

We generally prefer to award grants that are both unrestricted and core, however project-specific funding is considered when appropriate. Fully unrestricted grants can only be awarded where the organisation and activities are in line with UStSC’s vision and operate within Southwark.

The charity may also provide funds in the form of social investments or loans, with terms decided by trustees on a case-by-case basis.

6.3 Grant Programmes

  • Large grants: £30,000–£150,000 for organisations with an annual turnover of £100,000–£500,000. Large open-access rounds usually happen once a year but can be revised with committee approval. Applications are assessed against eligibility and prioritisation criteria.
  • Small grants: Up to £5,000, prioritised for small, volunteer-led groups with up to three staff and turnover under £100,000. The grant threshold is reviewed each round, based on local need and available budget.

Note: Small Grants are paused for Round 2, 2025/26. Funds are being directed to the Funding Differently programme. This will be revisited in the next financial year, 2026-27. Please see Community Southwark’s website for the latest information regarding Funding Differently.

Strategic, Issue-Based Partnership, and Proactive grants: Are invitation-only and may be awarded outside regular open-access rounds:

  • Strategic grants: Usually over £5,000, for organisations of any size turnover, often involving UStSC staff involvement, or bespoke programmes.
  • Issue-Based Partnership: Grants between £10,000 to £200,000 for partnerships or consortia, often involving UStSC staff involvement, pursuing common goals around a theme or population group.
  • Proactive grants: Under £5,000, awarded at staff discretion to respond to urgent local needs or special opportunities.

 

Section 6.4 Selection and Prioritisation – Large Grants

6.4.1 Eligibility – Should You Apply?

1. Your organisation is local to Southwark?

  • At least 75% of your work is delivered in Southwark
  •  Your main office is based in Southwark

2. Organisation turnover (past 3 years if available):

  • Small (<£100k): Apply via the Funding Differently programme (following their schedule)
  • Medium (£100k–£500k): Apply for UStSC core grants (open around January or February each year)
  • Large (>£500k): get in touch for a strategic conversation (all year)

3. Hygiene check / due diligence

  • Effective leadership:  Leader in place with vision, oversight, financial literacy, people skills, networks, risk management, and commitment
  • Good governance:  Registered organisation, up-to-date financial reporting, at least 3 independent trustees who are not related, regular board meetings, and governance and a Board that reflect the communities served
  • Good finances and stability: Regular management accounts, up-to-date policies (e.g., safeguarding, reserves), annual budgets, diversified income, and financial stability.

6.4.2 Impact Fit – What You Do, For Whom, How and Towards What End

  1. Mission serves a local need: the mission and vision is addressing equity in Southwark directly and speaks to how it mitigates the causes or consequences of inequity.
  2. Strong delivery: track record, footprint, uptake of services (eg scale, depth or repeat clients), cultural literacy, inclusivity, fit-for-purpose design (eg targeted or open access), serves a need / fills a gap, compares favourably to alternatives, appropriate data collection, impact measurement.
  3. Local connectedness: dependable, long-lasting relationships within communities, strong networks with other partners, joined delivery, referrals, collaboration.

6.4.3 Values Fit – Alignment with Our Priorities

  • Empowerment: Activities should support people to make decisions and act on their own authority.
  • Equity: Equity is embedded in your mission, leadership, governance, operations, and participation, including fair HR and inclusive practices.
  • Prevention: delivers early interventions and community-based solutions.

6.4.4 Balance – How Applications Compare in the Round

We also consider the mix of applications, existing grants, and timing to ensure balance across sectors and population groups. Applicants do not need to take action on this, but it informs our decisions.

Section 6.5 Selection and Prioritisation – Small Grants

Priority will be given to groups and activities which:

  • Deliver work that aligns with our Community Investment priorities
  • Meet local need and demand
  • Have experience delivering similar activities, or demonstrate capacity to do so effectively
  • Demonstrate value for money (with appropriate budget costs)

Note: Small Grants are paused for Round 2, 2025/26. Funds are being directed to the Funding Differently programme. This will be revisited in the next financial year, 2026-27. Please see Community Southwark’s website for the latest information regarding Funding Differently.

Section 6.6 Promoting Equity

A flexible approach to selection and prioritisation will be applied for groups considered important in achieving UStSC’s equity and inclusion ambitions.

For example, this could include lived-experience-led and BAME-led groups, who often face challenges in accessing funding or building organisational capacity.

Such organisations may be offered additional support by UStSC to help them develop and progress. Support is provided on a case-by-case basis, tailored to the needs of the organisation.

Section 6.7 Large Grant – Three-Stage Application

Stage 1: Introductory Call:

All applicants will be invited to register for an initial call with a member of the Community Investment Team before submitting an application.

This call is an opportunity to:

  • Confirm your eligibility and ensure your proposal aligns with our current priorities.
  • Discuss your idea / work and ask any questions about the process.
  • Receive further guidance on our process and requirements

Following this discussion, shortlisted applicants will be invited to complete an Expression of Interest (EOI) when the next funding round opens.

Stage 2: Expression of Interest (EOI) stage:

  • Involves a short application form and, in some cases, a visit from a UStSC staff member or trustee.

Following this, selected applicants will be invited to submit a full application.

Stage 3: Full Application stage:

  • Requests more detailed information on project delivery and due diligence.
  • Usually includes a visit from our team.

Application and Assessment

  • All applications are submitted and processed through our online grant portal, Flexigrant.
  • If you cannot apply online, please contact us for support.
  • Applications are considered in line with the eligibility and prioritisation criteria (sections 6.4 and 6.5)
  • UStSC is a relational funder: conversations, calls and visits take place during the decision-making process

Due Diligence

  • We carry out proportionate due diligence on all shortlisted applicants, based on the size of your organisation and the grant requested.

Communication of Outcome

  • All unsuccessful applicants are informed by email, with basic feedback provided on why they were not shortlisted, where appropriate.
  • UStSC endeavours to be open and honest about the outcome of applications and provides constructive feedback wherever possible when requested.

Section 6.8 Complaints and Appeals

There is no right to appeal a grants decision but organisations have the right to make a complaint if they feel that the correct processes were not followed in relation to their application and/or grant. Please submit any complaints by email or letter to the Chief Executive of UStSC.

Section 6.9 Grant Conditions

All successful applicants must agree to the standard conditions in our grant offer before any funds are released.

These conditions include:

  • the use of grant, payment terms, record keeping, reporting and monitoring requirements (as relevant)
  • recognition of and communication with UStSC
  • privacy arrangements, liability, and circumstances under which funding may be suspended or withdrawn

Section 6.10 Grant Monitoring

Grant monitoring and management differs depending on the type of grant:

Small Grants:

  • We ask groups to provide an end-of-grant report in a format that works for them. This will be agreed when your grant is approved.
  • You can use existing materials such as written reports, photos, videos, case studies, or journals; you do not need to create anything specifically for us.
  • We may visit a sample of small grant activities during the funded period (around 20%).

Note: Small Grants are paused for Round 2, 2025/26. Funds are being directed to the Funding Differently programme. The monitoring for the grants delivered through Funding Differently will be in line with their policies and procedures; please see here.

Large Grants (Unrestricted/Core):

  • Funded partners can expect one or two visits per year from UStSC staff or trustees. These visits are an opportunity to discuss needs, opportunities, impact, and challenges.
  • We will request a copy of your Management Accounts or Financial Report, every 6 months from grant award date.
  • We may ask for a report or reflection event. We do not expect new materials; please share existing case studies, stories, photos, feedback, or newsletters that show your impact. We will accept Impact Reports from organisations that produce them. And we will potentially support those who do not produce them yet.

Section 6.11 Payments / Financial Management

Large Grants:

  • Grant payments are made annually as stated in your grant offer letter. They are paid in advance of work delivered.
  • The first payment is made by BACS transfer once we receive your signed grant agreement and acceptance form.
  • Subsequent payments are released annually after we receive satisfactory management accounts and complete any agreed project visits.
  • For higher-risk grants, payments may be made in arrears or on a quarterly basis.

Small Grants:

  • Small grants are normally paid in full in advance by BACS transfer, but for higher-risk activities, staged payments may be used.

Note: Small Grants are paused for Round 2, 2025/26. Funds are being directed to the Funding Differently programme. Funding Differently grant payments are paid in full by BACS transfer. Please see Community Southwark’s website for the latest information regarding Funding Differently.

  1. Beyond Grant-making
    • Partnerships

UStSC staff actively participate in local partnerships that support our Community Investment goals. Staff may also develop and manage new partnerships as needed. Partnerships may involve grant contributions or the creation of bespoke funding programmes focused on specific issues.

7.2 Capacity Building and Connecting (Funding Plus)

The purpose of Funding Plus is to strengthen the capacity, resilience, knowledge, and connectedness of our funded partners and potential applicants. This in turn helps to maximise the impact of our financial investment

Funding Plus activities may include:

  • Convening – bringing people together for learning and collaboration through meetings, discussions, or roundtables
  • Training and workshops – such as sessions on writing successful funding applications
  • Challenge and coaching – providing advice and support directly or through specialist agencies
  • Brokering and connecting – linking organisations to useful networks and sharing knowledge
  • Resource development – creating and sharing helpful tools online, such as the Funding Guides and Community Events Toolkit
  • We will work closely with Community Southwark and other capacity-building providers wherever possible, to ensure our Funding Plus activity is well coordinated and adds real value
  • Research and Influence

The charity’s history and extensive relationships across the Borough puts us in a strong position to use our knowledge and local legitimacy to raise awareness of issues and advocate for change in line with our CI aims. While we recognise that we are small, we are increasingly recognised as an influential and progressive place-based funder, with the potential to make an impact on social issues through the effective use of our resources and connections.

We aim to be an accountable funder by funding, participating in, or encouraging research.

Research and influence activities may include:

  • Highlighting the impact and value of our partners through existing communications channels and events, website and social media (potentially increasing their chances of funding success
  • Highlighting, commissioning research, and speaking up about specific social issues that affect the people or organisations of Southwark
  • Engaging with policymakers, service providers, and other funders to influence responses to local issues.

[1] Institute for Voluntary Action Research. UStSC helped to develop these principles and to encourage others in the funding world to adopt them.