The Funding Gap for BAME Organisations: Why They Are Systematically Undervalued
The funding gap for BAME organisations is one of the most urgent yet under-discussed issues in the UK’s charitable sector. Despite delivering vital, culturally relevant services and tackling some of society’s most entrenched inequalities, Black, Asian, and Minority Ethnic (BAME)-led non-profits consistently receive a disproportionately small share of available funding.
This isn’t just a case of administrative oversight—it’s a systemic issue that continues to impact communities across the UK. In this blog, we explore the root causes of the funding gap for BAME organisations, its real-world consequences, and what must be done to correct this imbalance.
Understanding the Funding Gap for BAME Organisations
The funding gap for BAME organisations refers to the disparity in financial resources allocated to BAME-led non-profits compared to their non-BAME counterparts. According to data from the Charity Commission, only 5–7% of total UK charity funding reaches BAME-led organisations, despite the critical services they provide.
The Ubele Initiative Report further highlights that 9 out of 10 BAME-led organisations are at risk of closure due to lack of funding—a stark contrast to the sustainability seen in many white-led organisations with similar scopes.
This imbalance is not about capacity or intent; it’s about systemic access, visibility, and bias.
Why the Gap Exists
Several interlinked factors contribute to the persistent funding gap for BAME organisations:
- Structural Racism in Funding Decisions
Many traditional funding bodies lack diversity within their decision-making panels. This often results in unconscious bias when assessing applications, particularly from smaller BAME-led groups whose language, structure, or presentation may differ from more “mainstream” norms. - Lack of Visibility and Networks
A survey conducted by Beyond Growth with over 50 BAME-led organisations revealed that 60% of respondents felt invisible within the broader non-profit ecosystem. These organisations often lack access to the influential networks that help secure funding and partnerships. - Insufficient Support for Grant Applications
Over 85% of surveyed BAME-led organisations cited difficulties in accessing consistent funding. Many do not have the grant-writing expertise or administrative resources to compete with larger organisations. This often results in missing out on funding opportunities despite having proven impact. - Cultural Mismatch with Funders
Funding criteria are frequently developed without consideration of cultural context or community-specific needs. As a result, many impactful programmes are dismissed as “too niche” or not scalable—when in fact, their hyper-local, culturally tailored design is precisely what makes them effective.
The Impact on Communities
When BAME-led organisations are underfunded, entire communities lose out. In our service user survey, we found that:
90% valued culturally specific services
75% relied on BAME organisations for mental health and social support
60% reported access to economic opportunities like employment and education through these organisations
Closing down or under-resourcing these vital lifelines directly affects the well-being, resilience, and upward mobility of marginalised communities.
How We Can Close the Funding Gap for BAME Organisations
Tackling the funding gap for BAME organisations requires a collaborative, systemic effort. Here’s how the sector can begin to shift:
- Equity-Based Funding Approaches
Funders must go beyond equality and start using equity frameworks—allocating more funding to groups that have historically been excluded. Programmes like Comic Relief’s Global Majority Fund are a step in the right direction. - Capacity Building and Mentorship
Support needs to extend beyond finances. At Beyond Growth, we offer workshops, governance training, and one-on-one sessions to help BAME non-profits grow sustainably. Learn more about our support programmes here. - Reform of Grant Criteria and Application Processes
Funding bodies should simplify applications, offer feedback, and include lived experience in decision-making. The introduction of trust-based philanthropy models could help eliminate structural barriers. - Public Awareness and Advocacy
Raising awareness of this issue among the general public, policymakers, and philanthropists is essential. Blog posts, social campaigns, and partnerships can help shift the narrative and spotlight organisations doing meaningful work in underserved communities.
Why This Matters Now More Than Ever
The events of recent years—rising racial tensions, the COVID-19 pandemic, and worsening economic inequality—have shown how vulnerable BAME communities are to systemic shocks. Yet it is often BAME-led grassroots organisations that step up first and go furthest. Ignoring the funding gap for BAME organisations is no longer just unjust—it’s unsustainable.
By investing in these organisations, we’re not just redistributing resources. We’re investing in resilience, innovation, and justice.
Final Thoughts
The funding gap for BAME organisations is a structural problem with real human consequences. But with the right strategies, political will, and community-driven action, it can be closed. At Beyond Growth, we are committed to bridging this gap, building capacity, and empowering BAME-led non-profits to not just survive—but thrive.