Funders must do more so that vital charities serving the criminal justice system can navigate funding challenges – New Report

New research reveals the complex funding landscape criminal justice charities face and calls on funders to work closely together to make funding more effective.

In a new report published today researchers from NPC, a think tank and consultancy for the impact sector, analyse the flow of funding in the criminal justice sector. They identify the barriers charities face in accessing funding and make recommendations for how funders can change practice to help them.

The key findings include:

• Almost all statutory funding goes to larger charities – 94% of statutory funding goes to charities with annual incomes above £2m. Charities with annual incomes up to £500k received only 1.42% of statutory funding.
• Statutory funding accounts for double the share of income for criminal justice charities compared to the wider voluntary sector—57% of their total income comes from statutory sources, compared to just 26% for the wider voluntary sector.
• Only 3% of total income goes to criminal justice charities working with specific ethnic groups. Just 7% of charities identified ‘people of a particular ethnic or racial origin’ as the beneficiary group they focus on. This is in stark contrast to the over-representation of people from minoritised ethnicities within the criminal justice system, suggesting that the funding for charities supporting these people is insufficient.

The criminal justice voluntary sector is a vital and diverse ecosystem encompassing everything from large national charities to local community groups. However, securing financial support in this landscape can be a significant challenge.

“[Organisations] have to wear different hats, constantly checking to see what’s available. Our existence is dependent on our ability to attract funding… navigating [the landscape] is a minefield.” – Charity

“Priorities are quite different, depends on what funding priorities are. [Charities] have to tailor to what they are looking for.” – Charity

The report by NPC, commissioned by Lloyds Bank Foundation for England and Wales, aims to shed light on the funding landscape and recommends strategies for funders to better grasp the priorities, challenges, and decision-making processes of charitable organisations.

The report’s recommendations for funders include:

• Provide more opportunities for flexible and multi-year funding to reduce application burdens, cover non-delivery costs, and support organisational learning.
• Commit to funding more initiatives tackling the root causes that push people into the criminal justice system.
• Clarifying which activities and initiatives fall under the remit of statutory responsibilities can be a first step for statutory and philanthropic funders in planning how to address ongoing funding gaps practically.
• Commit to minimum standards of contracting, including covering the full costs of delivery.
• Explore pooled funding for clearly defined initiatives in ways that offer comparatively large amounts of funding, strike a balance between shared goals and flexibility, and do not inadvertently restrict the amounts contributed to the criminal justice funding landscape.

John  Williams, Senior Consultant at NPC and report co-author, said:

“Effective collaboration between the voluntary, public, and private sectors is crucial for addressing the complex challenges within the criminal justice system.

“This research seeks to equip funders, voluntary organisations, and decision-makers with the insights to forge new connections and find the resources necessary to support some of the most vulnerable people in our society.”

Nicole Sykes, Director of Policy, Communication, and Research at Lloyds Bank Foundation, said:

“Small charities working within the criminal justice system often face a tangled web of government and charitable funding sources.

Understanding how funders can adapt and evolve to ensure vital charities can effectively access and leverage these resources is essential to delivering life-changing services to those in need.”