CIC Funding Guide Updated 14 June 2026

How to Get Funding as a CIC

Quick Answer: A Community Interest Company can obtain funding through grants, trading activities, sponsorships, donations, crowdfunding, contracts and social investment. CICs limited by guarantee often have access to more grant opportunities than CICs limited by shares. However, the strongest CICs combine grant funding with sustainable trading income to create long-term financial stability.

How to get funding as a CIC guide showing grants sponsorship trading income social investment and fundraising opportunities for Community Interest Companies

Funding a Community Interest Company (CIC) requires a combination of grants, trading income, sponsorship, donations and social investment. While many CICs successfully obtain grants, the most sustainable organisations do not rely solely on external funding. Instead, they build multiple income streams that support long-term growth and community impact.

Can a Community Interest Company Get Funding?

Yes.

One of the biggest myths surrounding Community Interest Companies is that they cannot access grants or funding. In reality, many funders actively support CICs because they deliver measurable social impact while operating as sustainable organisations.

A CIC may be eligible for:

Grants
Sponsorship
Donations
Crowdfunding
Social investment
Public sector contracts
Trading income
Community fundraising

Important: Your funding opportunities may vary depending on whether your CIC is limited by shares or limited by guarantee. An experienced CIC accountant can help you understand which funding routes are most suitable for your structure.

CIC Limited by Shares vs CIC Limited by Guarantee

Before applying for funding, it is important to understand your legal structure. The choice between a CIC limited by guarantee and a CIC limited by shares can significantly affect which funding opportunities are available to your organisation. For a broader comparison, see our guide on CIC Vs Charity: which structure is right for my organisation.

CIC Limited by Guarantee

A CIC limited by guarantee often has access to a wider range of funding opportunities because there are no shareholders who can benefit financially. Many grant providers prefer this structure because it aligns more closely with traditional not-for-profit models.

Potential opportunities include:

  • Trust and foundation grants
  • National Lottery funding
  • Local authority funding
  • Community grants
  • Social impact programmes

CIC Limited by Shares

A CIC limited by shares can still access funding, but some funders may impose restrictions because shareholders can receive dividends. This does not mean funding is unavailable, but certain grant programmes may prioritise organisations without shareholders.

Tip: As specialist accountants for CICs, we regularly advise founders to consider future funding opportunities before deciding on their legal structure. Getting this right from the outset can save significant time and resources later.

Why Grants Should Not Be Your Only Funding Strategy

Many CIC directors start their journey believing grants will cover all operating costs. Unfortunately, grant funding is often competitive, restricted, time-limited and difficult to renew.

Competitive

Many applicants competing for limited funds

Restricted

Funds must be used for specific purposes

Time-Limited

Funding typically covers fixed periods

Difficult to Renew

Renewal is never guaranteed

Successful Community Interest Companies rarely depend on grants alone. The original purpose of a CIC was to create organisations that could trade and generate income while delivering social impact. For that reason, grants should generally be viewed as one part of a wider funding strategy rather than the sole source of income.

If you are setting up a CIC and want to understand which structure will give you the best access to funding, speak to our team of specialist CIC accountants before you register. Early advice can make a significant difference to your funding prospects.

Build a Mixed Income Model

The most financially resilient Community Interest Companies develop multiple income streams. A sustainable CIC often combines several of the funding sources below to reduce risk and remain less vulnerable when individual funding streams come to an end.

Income Source Examples
Grants National Lottery, Sport England, Arts Council
Trading Income Workshops, training, memberships, consultancy
Sponsorship Local businesses and corporate partners
Donations Individual supporters and fundraising campaigns
Contracts Local authority and NHS services
Social Investment Impact investors and ethical lenders

A mixed income model reduces risk and makes organisations less vulnerable when individual funding streams come to an end. Funders are also more likely to support organisations that have demonstrated an ability to generate their own income. For guidance on keeping your finances in order, see our charity bookkeeping services which also support CICs.

1

Apply for Grants Available to CICs

Many grant programmes are open to Community Interest Companies. Below are some of the most relevant funding sources for CICs across the UK.

National Lottery Community Fund

The National Lottery Community Fund is one of the largest funders of community projects across the UK. Funding is available for community development, health and wellbeing, youth programmes, social inclusion and environmental projects.

Visit TNL Community Fund

UnLtd

UnLtd provides support and funding for social entrepreneurs seeking to create positive social change. Many CIC founders use UnLtd funding to launch, test and grow innovative social enterprises.

Local Authority Grants

Many local councils provide community grants, social enterprise funding, youth programme funding, environmental grants, and skills and employment funding. Check your local authority website regularly as funding opportunities change throughout the year.

Charity Excellence Framework

The Charity Excellence Framework maintains one of the UK's most useful funding databases. Although many grants are aimed at charities, a significant number are also available to Community Interest Companies. It is an excellent starting point when researching funding opportunities for your CIC.

2

Generate Trading Income

The strongest CICs generate income through trading. This is one of the key reasons the CIC structure was created — to allow social enterprises to operate commercially while delivering community benefit.

Training courses
Workshops
Consultancy
Community events
Membership schemes
Social care services
Community cafés
Educational programmes

Ask yourself: "What service or product can we provide that people are willing to pay for?"

Many successful CICs find that trading income becomes their largest and most reliable funding source over time.

3

Deliver Services Under Contract

Many Community Interest Companies generate income through contracts rather than grants. Winning service contracts can provide recurring income while helping your organisation achieve its social objectives.

Local authorities
NHS organisations
Schools and colleges
Housing associations
CSR programmes
4

Seek Sponsorship from Local Businesses

Businesses are increasingly interested in supporting organisations that deliver positive social impact. Many are keen to support CICs that align with their corporate social responsibility goals.

Event sponsorship
Programme sponsorship
Equipment funding
Volunteer partnerships

When approaching businesses, focus on community benefit, measurable outcomes, local impact and brand visibility. Businesses want to see clear evidence of the difference their sponsorship will make.

5

Accept Donations

Although CICs cannot claim Gift Aid, they can still receive donations. Many people are willing to support organisations that create genuine community impact, even without the tax incentive that Gift Aid provides to charitable donations.

Individual supporters
Community fundraising
Corporate donations
Crowdfunding supporters

The key difference compared with charities is that donors cannot claim Gift Aid. If Gift Aid forms a significant part of your anticipated income, you may wish to consider whether charitable status — or a dual structure — would be more appropriate. See our CIC vs Charity comparison guide for more detail.

6

Use Crowdfunding Platforms

Crowdfunding has become an increasingly popular funding option for Community Interest Companies seeking to raise money for specific projects or initiatives. It can also help raise awareness and build community engagement around your CIC's work.

Projects commonly funded through crowdfunding include:

Community facilities
Equipment purchases
New services
Expansion projects
7

Explore Social Investment

Social investment combines financial returns with social impact. Unlike grants, social investment often requires repayment, but it can provide significant growth capital for established CICs looking to scale their operations.

Social investment funds
Ethical lenders
Community development finance
Impact investors
8

Access Sport England & Arts Council Funding

Sport England

If your CIC promotes physical activity, health or community participation, Sport England may provide funding opportunities for community sports clubs, physical activity programmes, youth engagement and inclusion initiatives.

Sport England Funding

Arts Council England

Arts Council England supports cultural, artistic and creative projects throughout England. If your CIC delivers creative or cultural activities, community arts programmes or heritage projects, Arts Council funding could be worth exploring.

Arts Council Project Grants
9

Create Community Fundraising Opportunities

Community fundraising remains a powerful way to generate income whilst strengthening relationships with beneficiaries and supporters.

Sponsored events
Charity challenges
Community fairs and festivals
Auctions
Online campaigns
10

Use Easyfundraising & Similar Platforms

Many CICs overlook passive fundraising. Platforms like Easyfundraising allow supporters to generate donations through their everyday online shopping at no extra cost to them.

Encourage directors, employees, volunteers, service users, supporters, friends and family to use these platforms. While individual contributions may seem small, they can accumulate significantly over time.

What Funders Want to See Before Providing Funding

Most funders assess more than just your idea. They want evidence that your CIC is financially stable, well governed, delivering measurable impact and compliant with regulations.

Annual accounts

Budgets and cashflow forecasts

CIC34 Reports

Learn more in our CIC34 report guide

Impact reports

Governance documents

Key insight: Strong financial management can significantly improve your chances of success. A specialist CIC accountant can help prepare the financial information that funders expect.

Real-Life Example: Community Wellbeing CIC

Imagine a CIC delivering mental health workshops and wellbeing programmes. Initially, the organisation receives a small grant to launch. Over time it develops:

Paid training workshops for local businesses and organisations
NHS contracts for community-based mental health support
Business sponsorship from local employers
Community fundraising events
Crowdfunding campaigns for new services

Rather than depending on a single funding source, the organisation builds a sustainable mixed-income model. This approach provides greater stability and supports long-term growth — exactly the kind of financial resilience that funders, investors and regulators want to see.

Common Funding Mistakes CIC Directors Make

Relying Solely on Grants

This is the most common mistake. Grants are competitive, restricted and often time-limited.

Ignoring Trading Opportunities

A CIC should normally seek ways to generate earned income. Trading was part of the original purpose of the CIC structure.

Applying for Every Grant Available

Targeted applications that match your CIC's specific objectives are usually more successful than a scattergun approach.

Poor Financial Records

Funders expect robust financial management. Good bookkeeping is not optional.

Failing to Measure Impact

Demonstrating outcomes is often just as important as demonstrating need. Funders want evidence of the difference your CIC makes.

How an Accountant Can Help Your CIC Secure Funding

Many successful funding applications are supported by strong financial information. A specialist accountant who understands the CIC structure can help prepare the documents that grant providers, investors and funding bodies expect to see.

Annual accounts preparation
Management accounts
Budgets and cashflow forecasts
Funding projections
Financial reports for funders
CIC34 reports and compliance

At Charity Accountants, we regularly support Community Interest Companies with the financial information required by grant providers, investors and funding bodies. Whether you need annual accounts, a CIC34 report, or detailed funding projections, our team of specialist accountants for CICs can help.

Related Guides You May Find Helpful

To learn more about Community Interest Companies and how to manage them effectively, explore our related resources:

Accountants for CIC CIC34 Report Explained What Is an Asset Lock in a CIC? Can a CIC Director Be Paid? CIC Vs Charity: Which Structure Is Right? CIC Accounts and Tax Services Charity Bookkeeping Services How to Set Up a CIC
Frequently Asked Questions

How to Get Funding as a CIC: Your Questions Answered

Speak to Our Team

Speak to Specialist CIC Accountants

Securing funding is one of the biggest challenges facing Community Interest Companies, but it is also one of the greatest opportunities for growth. The most successful CICs combine grants, trading income, sponsorship, contracts and community support to build sustainable organisations that create lasting impact.

At Charity Accountants, we help CICs across the UK prepare accounts, budgets, forecasts and financial reports that support funding applications and long-term financial planning. Our specialist accountants for CICs understand the unique challenges Community Interest Companies face.

Contact Our Team CIC Accounting Services