30 years of funding change: from £250 grants to million-pound programmes

To mark our 30th Anniversary, we recently reflected on where our story began, and then the growth that followed in our early years. But what came next?

While reflecting on our first 30 years, this chapter explores how our funding has continued to evolve – from £250 grants to million-pound programmes supporting communities across Scotland…

In December 2012, we became Foundation Scotland, introducing a new name, identity and a clearer sense of purpose. At that point, we were already recognised as Scotland’s busiest grantmaker, distributing over 1,000 awards annually. But while the scale of our work was growing, so too was our ambition.

In the early years, our funding was often small but powerful. Grants of a few hundred pounds supported local groups, community initiatives and grassroots projects – from equipment for local services to activities tackling isolation or hardship. These awards were often quick to deliver and highly responsive, meeting immediate needs in communities across the country.

As demand increased, so too did the complexity of the challenges communities faced. It became clear that alongside these smaller, reactive grants, there was a need for more strategic and sustained investment. Over time, we expanded our approach – developing donor-advised funds, building partnerships with families, businesses and trusts, and creating new ways for people to give.

This shift marked a move from simply responding to need, to working more proactively alongside communities and donors to achieve longer-term change. Funding models became more flexible and diverse, from community benefit funds linked to renewable energy developments, to social investment and the revitalisation of dormant charitable trusts.

Through social investment in particular, we have been able to support organisations in new ways - offering a unique blend of repayable finance with part grant - to help them grow, become more sustainable and deliver lasting impact.

These approaches enabled us not only to increase the scale of our funding, but to ensure it was better targeted and more impactful.

Just as importantly, decision-making evolved. With community benefit funds in particular, we placed greater emphasis on community-led approaches, establishing local decision-making panels and supporting communities to shape funding priorities for themselves.

As our Chief Executive Giles Ruck has said: “Local groups know best; they possess the knowledge, ability and agility to affect changes in their communities.”

This shift reflects a simple but powerful idea: those closest to the challenges are best placed to identify solutions.

Today, our funding spans a wide spectrum. Small grants to local groups remain a vital part of our work, continuing to support grassroots activity and local initiatives. Alongside this, we now deliver large-scale programmes and manage significant funds, including million-pound investments tackling issues such as inequality, climate change and community resilience.

To date, we have distributed well over £220 million to communities across Scotland, supporting thousands of organisations and projects. What began with modest grants has grown into a diverse and dynamic funding model – one that combines scale with local insight, and ambition with community focus.

While the scale of our funding has changed dramatically, our core purpose has remained the same.

In our next update, Giles Ruck, Chief Executive since 2003, answers some burning questions and reflects on his time leading the Foundation. Stay tuned…