0333 321 3021


Managing a Funding Crisis

Manchester Community Central Factsheets

A resource for the Voluntary Community and Social Enterprise (VCSE) Sector in Manchester

Updated March 2020

The Coronavirus crisis will throw up a range of challenges for third sector organisations, most of which are covered elsewhere.

Many VCSE organisations will find that their grant funders and commissioners are being supportive and that their funding is not immediately affected.

In some circumstances, it may be appropriate to seek a funder’s agreement to alter the purpose of an existing grant, although the scope for this may be limited by the funder’s programme objectives. We suggest you try to frame any proposed variation to fit within the boundaries of these objectives.

It may also be that, in the context of the Coronavirus crisis, special Government support is available, although this is currently unclear at the time of writing. You should be able to access the latest Government Covid-19 guidance here.

However, there are at least three circumstances in which organisations may still find themselves in crisis:

  • You rely on significant trading income, and this has been hit by sudden changes in social behaviour
  • You rely on significant levels of direct fundraising either from activities which can no longer take place or from corporate supporters who now have to prioritise their own problems
  • Your funding streams were already due to come to an end, but the process of replacing them has been stalled by delays within funder organisations

This guidance is designed for organisations which find themselves in one of these situations. It is aimed at both managers and Committee members, but it is vital that Committee members approach a crisis aware of their underlying responsibilities because:

  • managers may well be distracted by potential redundancy or hampered by conflict of interest, and
  • Committee members themselves may be at legal and financial risk

If you are unsure of your responsibilities as a Committee member, you can ask Macc for further guidance on this.
As a first step, we suggest you review your options