Lloyds Bank Foundation for England and Wales has launched a £3m fund to support charities led by and working with people who face racial inequality.

Around 40 grants will be awarded, with a focus on both immediate and long term support for good causes to help people living in poverty.

Charities and community interest companies with an annual income of between £25,000 and £500,000 are invited to apply for the three-year grants of up to £75,000. These are unrestricted grants and the deadline for applications is 31 May.

In addition, the foundation will offer additional support alongside the funding “to help organisations strengthen, be more resilient and develop further”.

It said that this latest funding aims to “focus on supporting people experiencing racial inequality to break free from poverty and achieve their potential” amid the cost-of-living crisis and the ongoing impact of the Covid-19 pandemic.

Good causes outside of London are a focus of the funding as they “have historically received less funding” than those in the capital, said the grantmaker.

London based organisations are being supported through a separate initiative, the 10-year Propel programme involving the Lloyds Bank Foundation and other funders.

Among charities already supported by the Foundation is Ipswich based Black, Asian and minority ethnic charity Phoebe, which campaigns against violence to women and girls.

“The grant from Lloyds Bank Foundation was a two-way partnership; we were the experts, encouraged to explore and adapted where we could make the most impact, rather than having a restriction on what to do,” said the charity’s director Mollin Delve.

"Our grant manager and the consultants she introduced us to helped us rethink and creatively use the funds. They met us where we were and got to know our organisation, which led to a period of supported change and growth. The resulting changes we have made over the last two years have meant Phoebe is now more secure and resilient and in a strong position to support our community to work through the challenges ahead."

1/ 📢We’re open for funding! #SmallButVital charities and CICs working with people experiencing inequity because of race or ethnicity can now apply for a three-year unrestricted grant of £75,000. Deadline: 31 May https://t.co/e9oIHWjlI4

— Lloyds Bank Foundation (@LBFEW) March 30, 2023

The launch of the Racial Equity Fund follows a commitment from the grant maker last year to guarantee £5.5m in funding for Black, Asian, minority ethnic and disability led charities. This is half of its £11m in core funding.

Lloyds Bank Foundation chief executive Paul Streets said: "We are excited to announce the launch of our Racial Equity fund. The small and local charities we partner with, run by minoritised communities, witness first-hand how structural and institutional racism continues to impact lives.

“These charities often find it difficult to secure funding and yet play a crucial role in reaching those often left behind by mainstream services.

"Building on the insights and experience we've gained over recent years, we are dedicated to addressing the funding inequalities experienced by Black, Asian and minoritised ethnic led charities to help them continue to support people confronting racial injustices.

“We continue to learn and improve our practices, codesigning this funding programme with organisations that work in this area and enabling charities to do what they do best - offering a trusted lifeline and helping communities overcome disadvantage."

A Racial Equity Fund eligibility webinar and Q&A will take place on 20 April, from 10.30am-12 noon.

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