Shelley Hathaway-Batt, head of strategic partnerships and projects at Clarion Futures, shares how a relationship-first approach is helping small charities strengthen their foundations and secure their future.
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Across the country, small charities and voluntary groups are under immense pressure. Demand for their services is soaring, funding is harder to secure, and statutory services are stretched to the limit.

Many voluntary, community and social enterprise (VCSE) organisations are stepping in to bridge the gaps - but often at great cost to their own sustainability.

In fact, research conducted earlier this year found that nearly half of small charities fear they are at risk of closure within a year due to their financial situation, with one in 10 saying they had less than six months’ funding left.

As a housing association working with hundreds of VCSEs, we often hear how difficult it is for them to keep operating. The pandemic created a host of new challenges, and while these organisations are agile and quick to respond to community needs, the cost of living crisis has only deepened the strain.

Historically, our support has come mainly through Clarion Futures – our charitable foundation – funding projects ranging from digital skills workshops and warm spaces to community gardens and sports clubs. But in today’s climate, funding alone is no longer enough.

Building resilience
In April 2023, we launched the Resilience Programme in partnership with the Fusion21 Foundation and Places for People to strengthen the capacity and long-term sustainability of grassroots organisations working in some of England’s most deprived areas.

Developed alongside VCSEs, this approach moves away from short-term, project-based funding and instead focuses on building knowledge, skills, and organisational resilience. In essence, we aim to equip these groups with the tools to become self-sustaining and continue delivering impact well into the future.

The programme’s success is due to the importance placed on strong relationships and a deep understanding of each organisation’s needs. Following our ‘support first, funding second’ model, we work with Almond Tree Strategic Consulting to design a bespoke package of one-to-one capacity-building support. Only once this consultancy phase is underway can VCSEs apply for core cost grants of up to £10,000, ensuring funding embeds the learning, drives lasting change, and provides vital breathing space.

A holistic, tailored approach
We meet leaders where they are - often feeling isolated and overwhelmed – and work together to identify challenges, provide reassurance, and create practical solutions. Our approach is tailored based on each group’s specific support needs, whether that’s strengthening board governance, improving communications, upgrading systems, or recruiting volunteers. The focus is on building stronger, more resilient organisations rather than providing short-term fixes.

Since launching in 2023, we’ve worked with over 140 organisations, delivering nearly 3,000 hours of tailored assistance and awarding more than £670,000 in core cost grants to 69 partners. Of those involved, 97% say they’ve gained practical tools and solutions to meet their needs, and 85% anticipate stronger community engagement as a result of taking part in the programme. One participant even leveraged the skills and confidence gained to secure a £100,000 Lottery grant.

One organisation supported through the initial phase of the programme is southeast London-based Ignite Hubs which operates both physical hubs and online services reaching young people across England. The organisation inspires and educates through coding, STEM, and creative writing programmes. Through our support, Ignite Hubs received tailored business planning and fundraising guidance to drive sustainable growth, enabling them to expand their offer and reach more young people. In addition, a £10,000 core cost grant allowed them to implement a new learning platform –
an investment that will play a crucial role in ensuring the organisation’s long-term sustainability.

Looking ahead
Building on the success of the Resilience Programme and learning from the evaluation we’ve recently completed, we’re about to launch the Community Catalyst, a major expansion of our model that will support 270 VCSEs over three years, backed by over £3 million in collective investment. With Peabody and Metropolitan Thames Valley (MTVH) joining us, alongside ongoing support from the Fusion21 Foundation and Places for People, we’re scaling up and extending our geographical reach – and now we want to go further, inviting funders, councils, and other housing associations to help build on this work.

Grassroots VCSEs play an irreplaceable role in our neighbourhoods. Our job is to ensure they not only survive – but thrive.

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