Funding into the criminal justice voluntary sector: mapping and understanding funding flows

Voluntary organisations working in and with the criminal justice system face a complex funding landscape.

This report explores what funding streams from statutory and philanthropic funders exist, and how they reach voluntary organisations (predominantly charities).

Key findings include:

• Statutory funding makes up double the share of income for criminal justice charities than the wider voluntary sector. 57% of the total income of our sampled criminal justice charities comes from statutory sources, compared to just 26% for the wider voluntary sector.
• 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.
• Only 3% of total income goes to criminal justice charities working with specific ethnic groups. Just 7% of sampled charities identified ‘people of a particular ethnic or racial origin’ as the beneficiary group they focus on.
• Voluntary organisations found statutory funding often comes with ‘funding gaps’. The costs of delivering contracts were not always fully recuperated, leading organisations having to seek funding to cover gaps. Delays in receiving funding created cash-flow challenges for smaller organisations in particular.

Recommendations include:

• Funders should provide more opportunities for flexible and multiyear funding to reduce application burdens, cover non-delivery costs, and support organisational learning.
• Funders should commit to minimum standards of contracting, including covering the full costs of delivery.
• Funders should align on reporting requirements suitable to the size of grants and the specifics of activities, which would likely reduce the time spent for organisations without sacrificing rigour.

About the report

NPC were commissioned by Lloyds Bank Foundation to research the funding landscape for voluntary organisations working in and around the criminal justice system.

We received feedback from His Majesty’s Prison & Probation Service (HMPPS), AB Charitable Trust, and Clinks.

Join our event How is funding allocated for the voluntary sector in the criminal justice system? taking place on 1st May to discuss the findings.