Fund Management for Communities

With years of experience working with communities to set up and manage localised funds, Foundation Scotland can help you.

We have a long track record in supporting communities to make the most of these opportunities. We know every community is different. There is no one size fits all. No matter where the money has come from, we work flexibly alongside communities and other stakeholders to make sure it meets local priorities.

We are well connected yet independent – our priority is to work with communities to maximise impact and ensure the money is well looked after.

How we can help

We have dedicated, experienced staff on the ground throughout Scotland, building relationships and facilitating local people's decision making about fund strategy and spending. This includes exploring different ways that money can be available to meet community priorities.

We can help at any stage of setting up or managing a community fund:

• Designing a community fund
• Preparing a fund strategy based on local priorities
• Putting in place and supporting effective governance. For example, setting up and running community panels or supporting company boards.
• Distributing funds (including open grantmaking and alternatives)
• Tracking impact
• Reviewing a fund to ensure it stays relevant.
• We can also set up a Community Invested Fund to generate longer-term income and support community projects far into the future.

A place-based approach

Where we live, our local community is important. It affects our daily lives and relationships. There are lots of valuable assets within our communities; local knowledge, local connections and local ideas, plus physical assets like buildings, outdoor spaces and the local environment.

We think of community funds as money that can be used to build on these opportunities and assets, supporting a range of local priorities. This place-based approach makes a lasting difference to local people’s lives.

Every community is different. No matter where the money has come from, we work flexibly alongside communities to ensure funds meet locally determined priorities, determine the most effective ways to distribute money and respond to changing circumstances. You can read more about how we do this at Fund management for communities.

Whether you’re a community council, a community company or a donor, we can help you at any stage in the lifetime of a community fund. From Orkney to Dumfries & Galloway, Scottish Borders to Aberdeenshire, we’ve supported communities all across Scotland to develop and implement their local fund strategies.

How we're making a difference

• More than 400 communities and 50 donors entrust us with local community fund administration.
• We currently steward over 100 community benefit funds across Scotland, working with communities and energy businesses to distribute over £13 million per year.
• We support 86 community fund panels, community companies and community councils involving nearly 700 residents in local grantmaking decisions.
• We have supported incorporated community organisations in Highland, South Lanarkshire and South Ayrshire to review and adapt their governance to ensure it was more transparent and accountable
• Alongside communities, we have developed 33 local Education & Training Funds across Scotland, distributing £2.5 million over the last ten years, supporting 1582 individuals to gain additional skills and qualifications and improve employment prospects.
• Throughout 2025, we provided secretariat and fund administration services for seven incorporated community organisations, managing community benefit funding in different parts of Scotland.
• We’ve enabled 44 communities to invest funds for the long-term through our pioneering Community Invested Funds.
• We’ve helped more than 20 community organisations to set up and run their own local grant-giving arrangements and advisory panels. We continue to provide ongoing support and advice.
• We’ve helped nearly 100 Community Councils and Development Trusts establish localised small grant schemes, and a further 160 run Micro-grants schemes.
• Working alongside communities, we've helped raise the impact and profile of community benefit funding - find out more here and in the links below.

If you are a Community Council and/or other community-based groups who receive funding from Foundation Scotland to operate a micro-grants scheme for their community, you can read our guidance here.