1. Move from programme funding to place-based strategy
Place-based giving shifts the focus of grant making from national programmes, thematic portfolios and short-term project grants to investment in the local ecosystems that enable giving and civic participation. This means:
- Define priority places, not just priority issues.
- Commit to multi-year, place-based portfolios.
- Support collaborative funding models within geographies.
This is not about abandoning thematic priorities but about anchoring them in place. A good example is the Steve Morgan Foundation’s work in Merseyside, which focuses on systemic change to improve youth outcomes through partnerships with local charities and services.
2. Fund the infrastructure that enables giving
Local giving is strongest where the infrastructure and systems are in place to support the flow of resources into communities. Grantmakers can help build these enablers by providing:
- Core and unrestricted funding for local intermediaries.
- Support for fundraising and digital capacity in grassroots organisations.
- Investment in shared platforms and local giving schemes.
3. Prioritise visibility of local impact
People who see the positive impact of charities in their local area are twice as likely to donate locally and three times as likely to volunteer.
This has profound implications for how impact is communicated and for the role foundations play in supporting and sharing it, by treating visibility as a strategic lever. For example:
- Fund charities’ communications, storytelling and community engagement.
- Support shared place-based data and insight tools.
- Invest in charities’ development of impact frameworks
How impact is seen and experienced is not uniform across the country. In some areas, people are far more likely to recognise and connect with the work of charities than in others.
Our interactive map explores how perceptions of charity impact differ by place, and how this connects to patterns of local giving and engagement.
4. Broaden participation, not just total giving
Our data highlights a structural challenge: falling giving, shrinking participation and affordability barriers, leaving many unable to give. This risks increasing reliance on a smaller pool of higher-value donors.
Consider funding that helps sustain a broad culture of giving, focusing grant making on strengthening charities’ capacity to engage and fundraise in ways which:
- Enable participation at all income levels. While this may result in a low short-term ROI, it is a long-term investment in making giving a social norm.
- Support the costs of community-led fundraising and giving circles.
- Invest in campaigns focused on youth and first-time donor engagement.
Rebuilding participation takes longer and is less visible than securing large gifts but it is essential for long-term impact.
5. Shift from deficit thinking to community agency
The report also reveals latent demand for local engagement, with many people wanting more opportunities to get involved in their communities.
An emerging alternative to framing funding primarily on needs and deficits is to fund for agency where communities are drivers of change and local giving:
- Invest in the infrastructure organisations that facilitate volunteering
- Fund approaches that enable community participation and collective action, rather than the activities themselves.
- Measure metrics that include participation, trust, and civic engagement.
6. Take a long-term, collaborative ecosystem view of impact
To strengthen local cultures of generosity, funding needs to be collaborative and long term, with models that recognise the scale of resources and time needed to create change.
- Committing to five-to-ten-year funding horizons in key places.
- Adopt evaluation approaches that value system change alongside service delivery.
The UK Local Giving Report 2026 highlights a clear challenge: overall giving is declining and participation is becoming more concentrated. However, the means to reverse this trend can be built into foundation strategy by focusing on places as well as programmes, investing in infrastructure alongside service delivery, and enabling broader participation rather than concentrating solely on outcomes.
For funders looking to apply these insights our consultancy team works with charitable foundations, businesses and individuals to make this shift in a practical and sustainable way.
