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Funding your charity’s property strategy

Grants, loans and more.

Once your charity has identified the right property approach, the next step is figuring out how to fund it. Property projects often require a blend of financial resources, and understanding the options available can help you build a sustainable, achievable funding plan.

This article explores the main sources of funding, how they can be combined, and the role that loan finance — including options available from CAF Bank — can play in supporting property projects.


Exploring your funding options

Grants

Funding available from local authorities, central government schemes (such as the Social Housing Decarbonisation Fund), and charitable foundations. Grants are typically ideal for covering specific capital costs, especially where projects contribute to sustainability or community benefit.

Loans

Repayable finance that provides upfront capital needed to move quickly or scale a project. This can include specialist options such as green loans designed to support energy efficiency or sustainability focused projects. For example, CAF Bank offers a green loan aligned with environmental standards.

Reserves

Unrestricted funds that can reduce reliance on external finance but may limit flexibility to respond to future needs.

Fundraising

Income raised through donors, corporate partners, or community-led campaigns. Fundraising can help bridge funding gaps while building stakeholder engagement.

Each source has its strengths and combining them strategically can help your charity deliver property projects with greater impact.


How loan finance can support your strategy

Many charities use repayable finance alongside grants and reserves to help deliver property projects — whether you are purchasing a new building, retrofitting for energy efficiency, or refinancing existing debt, our team works closely with borrowers to understand their goals and tailor support accordingly. 

For organisations pursuing sustainability improvements, green loans can play a role in supporting upgrades that meet recognised environmental standards. For example, CAF Bank’s Green Loan framework is aligned with the Loan Market Association’s Green Loan Principles, meaning the funded projects meet recognised sustainability standards. Eligible projects commonly include:

  • Fabric First insulation upgrades (improving the building’s structure to reduce heat loss).
  • New developments meeting EPC A or B standards (the highest energy-efficiency ratings).
  • Low-carbon energy systems such as solar panels or air source heat pumps.

Loan finance is generally available to UK-based charities and social purpose organisations, with eligibility depending on the nature of the project and the organisation’s financial position. At CAF Bank, guidance throughout the application process.



Combining grants and loans: A hybrid approach

Many charities are now blending grant funding with repayable finance to deliver larger or more complex projects. For example, the Social Housing Decarbonisation Fund (SHDF) provides substantial grants to support energy-efficiency upgrades in social housing. By pairing SHDF funding with an appropriate green loan, charities can cover the full cost of retrofit works while maintaining cash flow and financial resilience. 

This hybrid approach can be particularly effective when projects need to progress quickly or when the scale of work exceeds what grant funding can support.


Real-world examples of funding in action

Poland Trust

Combined a philanthropic gift, a local authority grant, proceeds from self-build plots, and a CAF Bank loan to develop 12 affordable homes for local residents. The project resulted in a sustainable community-led housing scheme with long-term social impact. 

Housing Pathways Trust 

Used CAF Bank loans to redevelop existing sites, build new flats, and refurbish bungalows as part of a rolling investment and cyclical maintenance programme. This approach helped the charity meet zero-carbon targets while maintaining high-quality housing for older residents. 

Porchlight

Expanded its property portfolio using repayable finance, increasing its capacity to support vulnerable individuals and demonstrating how strategic borrowing can drive social impact. 

These examples illustrate how different types of funding can work together to unlock community benefit and long term resilience.


Bringing it all together

Funding your property strategy is not just about securing capital, it is about building a financial model that supports your mission, protects your future, and enables long-term sustainability. Whether you are applying for grants, exploring green loans, or combining multiple sources, the key is to plan early, seek trusted advice, and align funding with your strategic goals.

Next in the Series

In our next article, we explore ‘Making the Case for Investment’, how to build a compelling business case, engage trustees and funders, and communicate the value of your property strategy to stakeholders.

If you are considering loan finance then our Financing the Future guide will help you get started. 


Charity assets may be at risk if you do not keep up with the repayments for a mortgage, loan or any other debt secured on them.

CAF Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 204451).

CAF Bank Limited Registered office is 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ. Registered in England and Wales under number 1837656.