b'THE FUNDING LANDSCAPECHALLENGES AHEADHighgate Newtown Community Partners (HNCP) and the people it supports operate in an increasingly precarious financial environment. The aftermath of a global pandemic, combined with the ongoing cost-of-living crisis, has left many more people needing our support while simultaneously creating immense challenges for charities like ours. Across the sector, competition for an ever-shrinking pool of funds has intensified, exacerbating the challenges we face.Demand for philanthropic funding has increased for three key reasons:1.PANDEMIC-ERA GRANT 2. IMPACT OF THE 3. INCREASED COSTS FORRELIANCE:COST-OF-LIVING CRISIS CHARITIES:ON COMMUNITIES: During the pandemic, a surge inRising operational costs, coupled available grants led to a significantThe cost-of-living crisis has placedwith the increased demand for increase in charities becomingenormous strain on households,services, have placed additional reliant on grant income. Now, asforcing more people to turn topressure on HNCPs resources.many of these grants are reducedfrontline charities like HNCP for or discontinued, competition foressential support, increasingMeanwhile, the availability remaining funding has growndemand across all our services. of funding has significantly considerably. decreased. Research conducted by Jo Jeffrey in 2024 identified over 150 grant-making trusts that have either paused, closed, or restructuredequating to The situation weapproximately 100 million in lost funding to the sector. This includes both smaller trusts, such as Casa Stella, and larger, well-are facing is due toestablished national funders like the Henry Smith Charity. These changes have created substantial a perfect storm ofgaps in funding, affecting charities across all sectors.Some funders have paused grant-rising demand andmaking activities due to being overwhelmed by the sheer volume of applications. For example, the declining funds. City Bridge Foundation recently closed its funding rounds to revise its strategy, with plans to re-open in 2025. A recent statement stated the recent surge in funding applications has taken us, and other funders by surprise. This highlights the increasing urgency for funding across the sector and the challenges funders face in meeting demand.10 HNCP IMPACT REPORT 2020 - 2024'