Can a CIC Apply for National Lottery Funding?
Yes, CICs can apply for National Lottery funding, including Awards for All. What the rules say about directors, CICs limited by shares, and what to prepare.
Yes. Community interest companies are eligible for National Lottery funding, including the most accessible programme of all, National Lottery Awards for All, which gives £300 to £20,000 for projects lasting up to two years. Both forms of CIC qualify: limited by guarantee, and limited by shares provided you follow the CIC Regulator's rules on distributing profits.
There are conditions, and a couple of them catch CICs out. This guide covers what the rules actually say, which Lottery funders exist, and what to have ready before you apply.
The two rules that catch CICs out
You need at least two unrelated directors. The National Lottery Community Fund requires at least two board members or directors who are not related: not married or partners, not family, and not living at the same address. Many CICs are set up by a couple or by family members, and this is the single most common reason a CIC application stalls. If that is you, appointing an additional independent director fixes it, and it strengthens your governance for every other funder too.
CICs limited by shares face an extra check. You remain eligible, but you must follow the Regulator of Community Interest Companies' guidance on sharing profits. In practice, funders want confidence that grant money benefits the community rather than shareholders. A CIC limited by guarantee has a smoother ride here, which is worth knowing if you are still choosing a structure.
Who the Lottery funders are
"National Lottery funding" is not one pot. Several distributors hand out Lottery money for different purposes, and CICs can apply to each of them where the project fits:
| Distributor | What it funds | Where to start |
|---|---|---|
| The National Lottery Community Fund | Community and voluntary sector projects | Awards for All (£300 to £20,000) |
| The National Lottery Heritage Fund | Heritage buildings, landscapes, culture | Grants from £10,000 upwards |
| Arts Council England (and national equivalents) | Arts and creative projects | Project grants |
| Sport England (and national equivalents) | Community sport and physical activity | Small grants |
Each distributor sets its own eligibility rules, so check the specific programme before you plan around it. The Community Fund's rules above are the ones verified here; the others accept community organisations including CICs for most programmes, with their own conditions.
Awards for All runs as a separate programme in each nation. The live listings are here: England, Scotland, Wales and Northern Ireland. For heritage projects, see the National Lottery Heritage Grants £10,000 to £250,000 listing.
What Awards for All expects from a CIC
The application is deliberately short, and first-time applicants win it every day. Have these ready:
- Your CIC registration number and a registered office address
- Two unrelated directors, as above
- A bank account in the CIC's name with two unrelated signatories
- A project with community benefit. The fund pays for activity that benefits a community, not for general trading. Frame the project around who benefits and how, not around the business.
- A realistic budget for between £300 and £20,000 of costs
Decisions typically arrive within a few weeks rather than months, which makes Awards for All a sensible first Lottery application before attempting anything larger.
Why CIC applications get rejected
Beyond the governance rules, the pattern is consistent. Applications framed as business support fail: the Community Fund backs community benefit, so "buy equipment to grow our CIC" loses to "run free weekly sessions for isolated older people, using equipment we need to buy". Projects that mainly benefit the company, its directors, or paying customers sit outside what Lottery money is for. And double funding fails: if another grant already covers a cost, Lottery money cannot cover it again.
If the Lottery is not the right fit
Lottery funding is one source among many for CICs, and rarely the fastest. Our grants for CICs page lists every live grant open to community interest companies, updated daily, and our CIC funding guide covers the wider landscape: community foundations, corporate funds, and public programmes that welcome CIC applications.
Frequently asked questions
Can a brand new CIC apply? Yes. There is no minimum trading history for Awards for All. You need the registration, the bank account, and the governance in place.
Can a CIC apply for more than one Lottery grant? Yes, including holding more than one at once, provided each funds different costs. You cannot fund the same cost twice.
Does a CIC need a separate charity to apply? No. CICs apply in their own right. Some CICs do later set up a charitable arm for access to charity-only trusts, but the Lottery funders above do not require it.
We are two family members running a CIC. Are we stuck? Not stuck, but you need to appoint at least one more director who is unrelated to either of you before the Community Fund will fund you. Most CICs in this position recruit a director from the community they serve, which funders read as a strength.
Your next step
Check your directors against the unrelated-persons rule, then read the Awards for All listing for your nation. If the fit is right, the application is one of the shortest in UK grant funding. To see everything else open to you today, browse grants for CICs.