Black and ethnic minority led charities urged to apply for £50,000 grants

Lloyds Bank Foundation has launched a Racial Equity Fund for small and locally based charities that are led by and support Black, Asian and ethnic minority communities.

The Fund launches on April 20 when charities will be invited to apply for two-year unrestricted grants of £50,000 as well as development support.

The funding is open all year round to give charities greater flexibility to apply at a time that suits them, according to the Foundation.

More than half of the trustee boards of those that apply must self-identify as Black, Asian or minority ethnic. The must also have an annual income of between £25,000 and £1m and a strong track record of supporting minority communities.

The Covid-19 pandemic shining “a light on existing deep-rooted and systemic inequalities in our society” is a key factor in the Fund launching, according to the Foundation.

“These inequalities are present across the complex social issues the Foundation funds such as homelessness, domestic abuse, mental ill health and the criminal justice system, with Black, Asian and minority ethnic communities less well served by mainstream provision, and disproportionately affected,” the Foundation said.

Foundation chief executive Paul Streets added: “The charities we partner with see first-hand how structural and institutional racism continues to affect lives.

“These inequalities are present across the complex social issues we fund yet charities led by minoritised communities face greater barriers to securing much-needed funding.”

He added: “Small charities led by those who serve these communities have been vital in reaching those who have been less well served by mainstream provision, especially during the pandemic.”

The Foundation’s funding announcement follows two reports released earlier this month warning that much of the recent funding for black and minority led charities has been too short term.

Funders for Race Equality Alliance found that grants during the pandemic often ran out at the end of March 2021.

Meanwhile, a report by the Boabab Foundation looked at how funding is too focused on the health crisis and is failing to tackle wider issues around racism and racial inequality.