We commissioned nfpResearch to deliver our first grantee and applicant perception survey to understand how our funding approach is experienced, how we can improve and what the sector needs at a time of extraordinary pressure.
As an open and trusting funder, we are committed to being flexible, making life easier for the organisations we fund, working in partnership and enabling them to respond to changing needs. Our survey findings reflect the responsive funding approach that we are proud of, grounded in long-term relationships and mutual trust and respect.
Grantees rated us highly on IVAR Open & Trusting grantmaking principles, especially, asking relevant questions, communicating with purpose and not wasting applicants’ time. We also performed strongly in our approachability, staff helpfulness, communication, ease of our application process and accessibility as an equitable and inclusive funder.
What the sector is telling us
The survey highlighted the scale of the challenges charities and community organisations face. Demand for services is rising coupled with volunteer and staff retention pressures, core costs continue to surge and many organisations are drawing on reserves simply to stay afloat. Public funding is shrinking and with some foundations stepping back, competition for grants is more intense than ever.
Despite these pressures, as ever in this sector, there is optimism. Applicants spoke about their resilience and willingness to adapt – exploring new approaches from public sector commissioning to partnerships. But they also stressed what makes the greatest difference: stable, core and multi-year funding, and funders who recognise quality delivery rather than focusing solely on innovation. Funders who show curiosity, offer flexibility and build longer-term relationships are seen as particularly helpful in navigating these conditions.
We also heard how important non-financial support can be in helping charities build capacity. Despite this, awareness of ‘Funder Plus’ is low, pointing to a need for clearer communication of this offer from us and the funding sector. Grantees and applicants told us they would particularly benefit from flexible, tailored support, especially smaller organisations less able to engage with focused programmes. They highlighted consultancy, peer networking, learning events and leadership development as valuable, and stressed the importance of funders using their wider networks to connect organisations, facilitate learning and to stay close to what is happening on the ground.
Where we can improve
While grantees and applicants were broadly highly positive in their perceptions of the Mercers’ Company, we also heard where we need to do better. Feedback for unsuccessful applicants is the most consistent area for improvement with only a third understanding why they were declined. Unsuccessful applicants would welcome more tailored feedback and applicants want clearer upfront guidance on what makes a strong application, when new funding opportunities are open and more transparency on timelines.
Looking ahead
We are grateful to all who shared honest and thoughtful feedback. The survey has been invaluable in helping us reflect on our practice and the pressures facing the sector. We have a culture of continuous improvement and this insight will directly shape how we strengthen our funding approach and prepare for the next phase of our Philanthropy Framework in 2028. We remain committed to learning, sharing insight, broadening access and supporting frontline work with empathy, openness and purpose.
Find out more about our Funding Approach and Funding Programmes.