How to get funding for a CIC in the UK

Grants are only one of five realistic funding routes for a UK Community Interest Company. This guide walks through each one, who it suits, and how to build a mix that does not collapse when a single funder says no.

Updated August 20269 min read

Start with the awkward truth

A CIC is not a charity, so some UK trust and foundation funding is closed to you before you write a word. That is not a reason to give up — it is a reason to be selective, because time spent on applications you are not eligible for is time taken from work you can win. See what a CIC actually is if you are still deciding on structure.

1. Grant funding

The main pools open to CICs are National Lottery community funding, local authority and combined authority grants, community foundations, corporate and utility community funds, and trusts whose published eligibility information explicitly includes Community Interest Companies.

What matters is eligibility, not volume. Before drafting, look for an explicit reference to Community Interest Companies or CICs in the funder’s eligibility information, and check that your geography, beneficiary group and income size fit. The complete grants guide covers this in detail.

2. Public sector contracts and commissioning

Councils, NHS bodies and housing associations buy services CICs already deliver — youth provision, wellbeing support, training, employment programmes. Contracts are competitive and demand evidence, but income is multi-year and repeatable in a way grants rarely are.

Register on Contracts Finder and Find a Tender for opportunities.
Get on local dynamic purchasing systems and approved supplier lists early.
Ask commissioners for a pre-market engagement conversation.
Track your unit costs — commissioners buy on outcome per pound.

3. Trading income

A CIC can generate trading income through selling goods or services, provided its activities remain consistent with its community purpose and legal obligations. Common models: selling services to the public or businesses, room and asset hire, training and consultancy, and a cross-subsidy model where commercial customers fund free provision for those who cannot pay.

Earned income can reduce reliance on any single funder, but it is subject to the same company law, tax and CIC-specific requirements as any other activity.

4. Social investment and loans

Social lenders provide repayable finance to organisations with a reliable income stream — useful for property, equipment, working capital or bridging a delayed contract payment. Blended packages that combine a grant with a loan are available from some lenders. Only take on debt where you can name the income that repays it.

5. Crowdfunding, equity and donations

Crowdfunding works when there is a specific, visible thing to fund and an existing audience to ask. Some match-funding platforms pair public pledges with institutional money. Some CICs limited by shares can raise equity investment, although share issues and dividend arrangements are subject to specific CIC and wider financial rules, so professional advice may be appropriate. Donations and local fundraising can cover unrestricted running costs that grants will not.

Build a funding mix, not a funding hope

Depending on what your CIC does, a workable mix can look like:

Trading and contracts covering core costs and salaries.
Grants funding new work, pilots and capital items.
Investment used sparingly, tied to a specific income stream.
Reserves built deliberately from surpluses, not left to chance.

What funders may ask a CIC for

Companies House number and CIC status.
Most recent accounts and your CIC34 community interest report.
Your governing documents and up-to-date details of your directors.
Safeguarding, equality and data protection policies where relevant.
A budget that shows full cost recovery, not just direct delivery.
Evidence of need and a plan for measuring outcomes.

Requirements vary between funders. Missing documents can cause avoidable delays, so keeping a current funding document pack is worthwhile.

A repeatable weekly routine

Scan new opportunities once a week, at a fixed time.
Screen against eligibility before reading anything else.
Score for fit, effort and realistic odds; keep the top two.
Reuse a maintained core narrative rather than starting blank.
Log every outcome so your next application starts stronger.

That scan is the part GrantNest helps with: GrantNest researches UK funding opportunities and excludes schemes where CIC eligibility cannot be verified from official funder information. Individual eligibility still depends on the organisation, project and full fund criteria.

Frequently asked questions

Can a CIC get funding if it is not a charity?

Yes. CICs can win grants from funders whose published eligibility information explicitly includes Community Interest Companies, bid for public sector contracts, take social investment, generate trading income, and crowdfund. Some trusts and foundations are restricted to registered charities, so those programmes are closed to CICs.

What funding is available for a new CIC with no track record?

Small local grants, community foundation programmes, National Lottery community funding, and start-up support from social enterprise networks are common starting points. Requirements vary between funders, so check each fund's published criteria on how much trading history or how many filed accounts are needed.

Do CICs pay tax on grants?

A CIC does not receive a general tax exemption on grant income simply because it is a CIC. The tax treatment of a particular grant depends on what the payment is for and the circumstances in which it is received. CICs are companies for Corporation Tax purposes, so if you are unsure how a grant should be treated, check with an accountant or HMRC.