New £1mn cost of living fund will support 31 Black & Ethnic Minoritised-led charities & social enterprises
Melanie May | 7 August 2024 | News
Pathway Fund has today announced a £1 million Cost of Living Support Programme, which will support 31 Black and Ethnic Minoritised-led charities and social enterprises with the cost-of-living crisis.
Recent research by Pathway Fund found that 66% of Black and Ethnic Minoritised-led organisations feel the cost-of-living crisis still stops them from delivering for their communities. 76% also believe they have been refused funding because of their race or ethnicity. It found too that, from the 1,000 Black and Ethnic Minoritised organisations surveyed, 55% would not trust and approach social investors.
Other research, Do it Now Now‘s Cost of Living Report also highlights that the rising costs of doing business, combined with stagnant or insufficient funding, has presented Black and Ethnic Minoritised-led organisations with severe challenges. It found that 9 in 10 Black and Ethic Minoritised-led enterprises are concerned about the ongoing cost of living crisis, with 7 in 10 extremely concerned. 66% of those organisations said that it stopped them from being able to improve their communities.
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Three types of grants
In response, the new programme will offer three types of grants: Enterprise Development Grants (up to £15K) – for charities and enterprises at earlier stages of developing their enterprise models; Investment Readiness Grants (up to £30K) – focused on those charities and enterprises that have established trading models but require additional support; and Blended Grants (up to £40K) – for larger organisations where the grants are blended with loans from social co-investors.
As well as funding, the new programme will offer support to build up enterprise and trading models, to help grant recipients become more successful in gaining funding on an ongoing basis.
The programme is being launched in partnership with Access – the Foundation for Social Investment, Do it Now Now, and Inclusive North. It is funded by the Dormant Assets Scheme.
The call for applications will be shared later this year. Applications will then be shortlisted, before going to a selection panel that will include people with lived experience of the issues they are deciding upon.
Dilys Winterkorn, Project Director, Pathway Fund, said:
“Existing economic disparities are being intensified by the rising cost of living; this threatens the sustainability of many Black and Ethnic Minoritised-led organisations and consequently, adversely affects Black and Ethnic Minoritised-led institutions, too. These groups represent a lifeline for our society as they provide crucial services, assistance, and advocacy, for the communities that they represent.
“Many of these organisations mostly work with little to no budget and face systematic obstacles in accessing mainstream financial support. It’s vital that we secure adequate funding to enable these organisations to continue. They can only overcome the present economic challenges with responsive financial support – to build resilience and enhance community development and empowerment. Providing them with that support and guidance is important in ensuring that recovery benefits are shared equitably between all sections of society.
“Pathway invites funders to reach out, so that we can further increase our impact – and ensure that ever more Black and Ethnic Minoritised-led organisations and communities are supported, in the years to come.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.