Where Can Community Interest Companies Get Funding in the UK?

Grants, loans, investment and earned income are not the same

A grant doesn't have to be repaid, but comes with conditions on how it's spent and reported. A loan or other repayable finance must be paid back, usually with interest. Investment — for example, selling shares in a CIC limited by shares — gives someone a stake. Earned income is money from selling goods, services or contracts. Most sustainable CICs use more than one.

The main funding routes

National grant programmes

Large programmes such as the National Lottery Community Fund's small-grant schemes often accept CICs, but each UK nation has its own programmes and rules. A fund available in England is not automatically available in Scotland, Wales or Northern Ireland.

Awards for social entrepreneurs

Some funders back the founder as well as the venture, pairing money with mentoring. These are usually for early-stage ventures and have strict age and income rules. See our worked UnLtd Awards example.

Community foundations

Community foundations manage local funds across the UK and many accept CICs. They're often the best starting point for smaller, place-based work. Find yours through UK Community Foundations' directory.

Local authority funding

Councils run community, environment and economic development grants. Eligibility is usually tied to the council area and can be specific about CIC type.

Charitable trusts and corporate foundations

Many trusts can fund non-charities, but some are restricted to registered charities. Corporate foundations and company community programmes often focus on areas where the business operates.

Social investment and repayable finance

Social lenders and investors offer loans, blended grant-and-loan packages and equity for organisations with a trading model that can support repayment. Good Finance, a sector-backed information site, explains the options and lists providers.

Trading and contracts

Selling services, running paid programmes and winning public sector contracts give you income you control. It also strengthens grant applications, as funders often look for a route to sustainability.

Other routes

Crowdfunding, sponsorship, in-kind support and partnerships with charities (who may apply for funds you can't) can all fill gaps.

How to identify CIC-friendly funders

1. Read the funder's own eligibility list — look for "community interest company" by name.
2. Check whether your CIC type (guarantee or shares) is accepted — see CICs limited by shares and grants.
3. Look at who the funder has funded before, if they publish grant lists.
4. Check the other criteria in our CIC grant eligibility guide.

What newer CICs should prepare

• A bank account in the CIC's name and your articles of association
• A short, clear description of the need and who benefits
• A simple budget with real quotes where possible
• At least a basic safeguarding policy if you work with children or adults at risk
• Evidence of demand: a pilot, letters of support, feedback or referral numbers

What established CICs should prepare

• Filed accounts and your latest CIC34 community interest report
• Outcomes data from past work, not only activity counts
• A clear split of trading income and grant income
• Up-to-date policies and a board that meets funders' independence expectations
• A funding plan showing how one grant fits a wider mix

Common funding mistakes

• Applying from a directory summary without reading the funder's current guidance.
• Missing a structure, location or age restriction until after writing the bid.
• Asking for costs the fund excludes, or for work already under way.
• Relying on one funder for most of your income.
• Leaving applications until the last week — some rounds close early when full.

How to organise applications

Keep a simple tracker: funder, programme, amount, deadline, eligibility checked (with the date and link), status and reporting dates. Save reusable answers — your mission, need, outcomes and budget notes — so each application starts from tested material.

Fit the funding to your organisation

It's tempting to bend a project to fit a grant. Resist it. Funding that pulls you away from your mission creates work you didn't plan for and outcomes that are hard to deliver. Start from what your community needs and what your CIC does well, then look for funders who want the same thing.

Frequently asked questions