Giving organisations space to breathe: the impact of unrestricted funding on youth-led change
Our young people have noticed me saying “yes” more often, not “no”. In the last 18 months, I’ve been able to say to them, “it’s okay, we’ve got some funding. What do you want to do?” And because those who have been around a while would have heard me previously saying, “That’s a really good idea, I’ll try to find some funding for that.”Now I’m able to say, “We’ve got the funding, so what do you want to do? Right, so let’s organise that.”
future communities fund partner
At the Co-op Foundation, we believe that how we fund matters as much as what we fund. Our newest learning report, Enhancing stability and responsiveness: How multi-year unrestricted funding enables organisations to support young people, confirms our initial assumptions and motivations for creating our Future Communities Fund: unrestricted funding is transformational for youth organisations and the young people they serve.
The first round of the fund was set up to support organisations working with diverse young people who face structural barriers into leadership positions. We awarded grants of up to £150,000 over five years to smaller organisations with an annual turnover below £250,000.
Space to respond, room to grow
Unrestricted funding, especially over multiple years, gives organisations the breathing space they need to follow the changing needs and aspirations of young people. This flexibility was vital during the pandemic, and our latest evaluation, conducted by IVAR (Institute for Voluntary Action Research), shows it remains crucial today. Unlike traditional project grants, unrestricted funding allows youth organisations to invest in what matters most – whether that’s upskilling their teams, supporting staff wellbeing, or shifting resources to address emerging issues in their communities.
One funded partner told us:
“It’s enabled us to give security to staff. I’ve been able to offer a three-year contract. That’s really different.”
Stability like this is not just beneficial for the team; it’s essential for young people, who need time and consistent relationships to build the trust required for meaningful support.
Shifting power to young people
Our unrestricted grants prioritise organisations supporting diverse young people in leadership roles – not just in programme delivery, but in decision-making at every level. As the report highlights, unrestricted funding is what makes youth-led design, delivery, and governance possible.
Organisations told us that, for the first time, they could say “yes” to young people’s ideas in real time, rather than waiting for the next project bid to be approved. As one partner described:
“Having a pot of unrestricted money available means that when a youth voice group comes up with an idea, we can respond to it. It means that we can work at the pace of young people, follow their aspirations and validate their choices.”
This approach helps remove barriers, particularly for less privileged young people, and ensures that leadership opportunities are genuinely accessible and inclusive.
Learning together and adapting
We also know that unrestricted funding is new for many organisations, as well as for us as a funder. Our report found that learning how best to use this flexibility is a journey. Some partners felt uncertainty about how to allocate the funding most strategically, having been used to restricted project grants. That’s why, as funders, we have a responsibility to offer better guidance and support, not just funding.
Our learning and impact approach is collaborative and evolving. With IVAR, we’ve adapted our evaluation framework, drawing on best practice from leaders like the Ford Foundation’s BUILD programme, to focus on how our funding strengthens organisations – not just what activities it delivers. We’ve listened to our partners’ feedback and reduced the number of learning sessions to avoid overburdening small teams, while tailoring sessions to their needs and creating space for peer networking and reflection.
Building Open, Trusting Relationships
As a small funder, our unique value is in the relationships we build. We’ve committed to the Open and Trusting grantmaking community, and our partners tell us they appreciate our tailored, approachable style. We join our partners in learning sessions to hear first-hand about their successes and challenges. This proximity gives us a deeper understanding of the work, the different contexts, and also the commonalities our partners share. It’s always humbling to hear partners reflect, “Are we doing enough for young people?” and to see how, despite limited resources, they invest in their teams’ wellbeing and development, knowing that this is what keeps youth workers in post and young people supported.
Learning for the Future
We don’t see unrestricted funding as an end point, but as a starting point for continuous improvement. Our own ‘pause and reflect’ sessions, facilitated by IVAR, help us consider how we can do better – whether that’s giving partners more space to showcase their work, introducing a capacity-building budget, or encouraging more structured reflection on how funding is used and reported. As we move forward, IVAR is training young people as peer researchers to explore the impact of our funding from their perspective. We’re also careful not to overburden partners with requests, deferring our own annual conversations when needed.
A Call to Other Funders
We know some funders worry that the impact of unrestricted funding is hard to measure, and as a result, they hesitate to adopt this approach. Our report shows that not only is impact visible – it is often transformational. We invite fellow funders to read our findings, learn from our approach, and consider piloting unrestricted grants. Even if full flexibility isn’t possible, broader grant terms and longer commitments can make a world of difference.
Thank You
We are incredibly proud of our funded partners and grateful for the trust and relationship we have built together. We are also thankful to IVAR for creating a safe space for honest learning and reflection – not only for our partners, but for us as a funder. Unrestricted funding is not just a financial transaction, it’s a commitment to partnership, learning, and youth leadership. Let’s continue to give organisations – and young people – the space to breathe, grow, and lead.