Portsmouth council launches funding boost for struggling charities
Charitable and community organisations in Portsmouth could receive up to £10,000 in a council match-funding scheme.
Portsmouth City Council has agreed to launch a new funding scheme to support local charities and community groups that are struggling with rising costs and demand.
Reports from the council show that while overall donations are stable or growing, fewer people are donating, and many charities are relying on their savings to stay afloat. At the same time, inflation, higher wages, and the ongoing cost of living crisis are putting more pressure on their budgets.
A recent increase in employer National Insurance contributions has made the situation even harder. The new rate of 15 per cent, along with a lower threshold of £5,000, has pushed up operating costs.
Across the UK, this is expected to cost the charity sector around £1.4bn. One charity in Portsmouth alone is facing £70,000 in extra expenses this year.
Councillor Steve Pitt criticised the government for not protecting the charity sector from these changes. He said the government failed to recognise the value these groups bring to local communities and should have treated them differently.
The council’s new scheme will offer matched funding to help these organisations continue providing essential services. This funding aims to make it easier for them to win outside grants and bring more money into Portsmouth.
Each organisation can receive up to £10,000 per year through the scheme, covering up to 10 per cent of their total grant request. To qualify, groups must be registered charities, social enterprises, or not-for-profit organisations that operate in Portsmouth.
They must show how the money will help them get other funding, explain the impact of their work, and outline plans for staying financially stable.
The council will focus on supporting groups that meet its key goals, fill service gaps, serve underrepresented communities, or try new ways of working together. Organisations with large amounts of unrestricted savings may not be eligible.
This new scheme comes after councillors and local charities pushed for more support last year. It is especially aimed at protecting early help and intervention projects, which can save the council money in the long run.
A total of £200,000 has been allocated by the council to support thematch funding scheme.