Core Costs Funding: Grants That Pay Running Costs

Core costs funding pays for the things that keep your organisation running: salaries, rent, insurance, bills and finance. It is harder to win than project money, but a few UK funders offer it openly, and many more will pay a fair share of running costs inside a project bid. Here is how it works and who to try.

Last checked: 19 October 2026. Every amount and rule below was checked on the funder's own page.

Core, unrestricted and project funding: the difference

These words get used loosely, so check what each funder means.

• Unrestricted funding can be spent on anything that serves your charitable aims, at your discretion.
• Core funding pays for running costs, but may be tied to named items, such as a manager's salary or rent.
• Project funding pays for a defined piece of work, sometimes with a contribution to overheads.

IVAR, which researches how funders work, points out that "core funding" means different things to different funders. BBC Children in Need, for example, funds core costs but says its grants are not fully unrestricted: you must name the costs you want covered.

Funders that pay core costs

Both of these are open on GrantMatch and accept applications at any time.

Esmée Fairbairn Foundation funds core or project costs, including salaries and overheads, and gives unrestricted funding to charities. Grants start at £30,000 with no upper limit, and most run for three to five years. It does not fund organisations with a turnover under £100,000, and competition is fierce: in 2025, 5% of expressions of interest led to a grant.

Garfield Weston Foundation Regular Grants are under £100,000 and can go towards general running costs, including overall salary costs, for one, two or three years. The foundation says it generally supports around 10 to 20% of an organisation's annual budget. It is open all year, decisions take four to six months, and you need at least one year of accounts. It funds registered charities, not CICs or social enterprises.

Children and young people's core funding

BBC Children in Need Core Costs is for charities and not-for-profit groups working with children and young people aged 18 and under. Grants run from £1,000 to £40,000 a year for up to three years, with no deadline. It prioritises smaller, local groups and won't fund organisations with income over £1 million. Requests over £15,000 a year must come from groups registered with the right regulator, and smaller requests get quicker decisions. Schools can't apply.

Paul Hamlyn Foundation Youth Fund covers core operating costs, including salaries, for not-for-profit organisations working with young people aged 14 to 25 who face systemic inequity. Your annual income must be between £100,000 and £2 million. Grants are up to £50,000 a year for three years, with nothing under £30,000 a year. It is rolling, and it makes about 20 grants a year.

How to show what your core costs buy

Funders who pay running costs still want to know what difference the money makes. Make the link plain:

1. List the costs. Name each one with a figure: coordinator's salary, rent, insurance, bookkeeping.
2. Tie each cost to your work. "Our coordinator recruits, trains and supports 40 volunteers a year."
3. Show the risk without it. If losing the rent money means losing the venue, say so.
4. Show your mix of income. Funders like to see that they are one backer among several.

That last point matters for Garfield Weston, which funds a share of your budget rather than all of it.

Full cost recovery in every bid

Even if you never win a pure core grant, you can recover running costs through project bids. Full cost recovery means each project carries its fair share of overheads, such as a slice of rent, finance, management and IT, worked out on a clear basis like staff time or floor space.

Funders treat this differently. Garfield Weston allows a contribution to core costs of up to 15% in its project grants. BBC Children in Need's Core Costs stream won't fund a percentage of all your overheads, so you must name specific costs. Read each funder's rules first. Our grant budget template shows how to set out overheads line by line.

Questions people ask

Can a small charity get core funding? Yes, though the largest funders often set an income floor. Esmée's is £100,000 turnover. Children in Need's Core Costs stream suits smaller groups working with young people. For more options, see our guide to grants for charities or browse charity grants open now.

Can a CIC get core funding? Sometimes. Paul Hamlyn's Youth Fund accepts not-for-profit companies and social enterprises with an asset lock. Garfield Weston does not fund CICs. Our guide to grants without a charity number lists other routes.

Will funders pay salaries? Many will. Esmée, Garfield Weston, Children in Need and Paul Hamlyn's Youth Fund all name salaries as costs they cover.

Looking for funders that pay running costs? Create a free GrantMatch account and we'll email you new grants that fit your organisation.

We check every deadline on the funder's own website before publishing. Funders do change dates, so always confirm on their site before you apply.