Funding Follows Evidence: What HMRC’s Expanded Grant Programme Means for UK Charities

When HMRC announced that it would more than double funding for social impact organisations supporting customers who need extra help, the news was understandably welcomed across the voluntary sector.

The expanded programme will make more than £11 million available between 2027 and 2030, helping charities and community organisations continue providing vital support to people navigating tax and financial challenges.

For many organisations, the funding itself is the headline. Yet there is another important message hidden within the announcement.

The guidance accompanying the programme highlights something that many funders have been moving towards for several years. It is no longer enough to simply describe the work being delivered. Organisations are increasingly expected to demonstrate how that work is managed, how resources are used, and what outcomes are being achieved.

For charities operating in an increasingly competitive funding environment, that shift presents both an opportunity and a challenge.

The Funding Landscape Is Changing

Most charity leaders will have noticed that funding applications look very different today than they did a decade ago.

Funders still want to understand the needs being addressed and the communities being supported. However, they are also asking more detailed questions about governance, financial management, risk, reporting, and organisational effectiveness.

The latest HMRC funding guidance reflects this trend. Applicants are expected to demonstrate their ability to deliver services effectively, manage funding responsibly, and evidence the impact of their work. That expectation is not unique to HMRC.

Whether funding comes from government programmes, charitable trusts, foundations, or corporate partners, organisations are increasingly being asked to provide evidence alongside ambition. Good intentions remain important, but funders are also looking for reassurance that resources will be managed effectively and that outcomes can be measured.

The Challenge Isn’t Creating Impact. It’s Proving It.

One of the frustrations many charities face is that they already have the information funders are asking for, but the challenge is bringing it together.

Anyone who has worked on a grant application will recognise the situation. Financial information sits within one system. Project managers maintain records of service delivery. Trustees receive governance reports. Different teams hold different pieces of the overall story.

When a funding opportunity appears, organisations often find themselves pulling information together from multiple sources, validating figures, checking reports, and ensuring everything aligns. None of this work creates new impact, it simply makes existing impact visible.

For smaller charities in particular, this process can place significant pressure on already stretched teams. Staff who would rather spend their time supporting beneficiaries instead find themselves searching through spreadsheets, emails, reports, and folders trying to gather evidence for an application.

Why Governance Is Becoming Part of the Funding Conversation

When people think about funding applications, they often focus on outputs. How many people were supported? How many sessions were delivered? How many volunteers were recruited?

These measures remain important, but funders are increasingly interested in how organisations operate behind the scenes. Strong governance has become a key indicator of organisational resilience.

Funders want confidence that spending decisions are properly overseen. They want to know that trustees have access to meaningful information. They want evidence that resources are being allocated appropriately and that risks are being managed effectively.

In many ways, this reflects the growing pressure on charities to do more with limited resources.

Organisations that can demonstrate clear oversight and effective management often find themselves in a stronger position when applying for funding because they can provide confidence alongside impact.

Building Evidence Before You Need It

One of the most valuable lessons charities can take from programmes like this is that funding readiness cannot begin when an application window opens. The strongest applications are usually built on months or years of good practice.

Organisations that consistently collect information, maintain clear records, and establish reliable reporting processes are often able to respond to funding opportunities more quickly and more effectively and that does not mean creating additional bureaucracy. In fact, the opposite is often true. The goal is to ensure that useful information is already available when it is needed.

Whether that is financial data, project reporting, governance records, or operational information, having visibility across the organisation makes it easier to demonstrate both impact and accountability.

Small Improvements Can Create Powerful Evidence

When people hear the phrase “evidence of effectiveness”, they often think about large-scale transformation projects or major service improvements. In reality, some of the most compelling evidence can come from smaller operational improvements.

Perhaps reporting that once took several days can now be completed in a few hours. Maybe trustees have access to better information and can make more informed decisions. Perhaps programme costs are tracked more accurately than before, providing greater confidence in budgeting and forecasting.

These improvements may not directly affect beneficiaries, but they strengthen the organisation’s ability to deliver its mission. They also provide tangible examples of good stewardship, which is something many funders actively look for when assessing applications.

Looking Beyond This Funding Round

HMRC’s expanded grant programme is undoubtedly good news for the sector. More funding means more opportunities to support individuals and communities who need help navigating complex financial systems. Yet the announcement also highlights a wider trend that is unlikely to disappear.

Funders increasingly want organisations to demonstrate not only what they achieve, but how they achieve it. For charities, that means thinking beyond individual funding rounds and considering how evidence, governance, and reporting are captured throughout the year.

The organisations that do this well are often in the strongest position when new opportunities arise. Not because they have better stories to tell, but because they already have the evidence to support the hard work they do.

References
HM Revenue & Customs (2025) HMRC doubles funding for customers who need extra support. Available at: https://www.gov.uk/government/news/hmrc-doubles-funding-for-customers-who-need-extra-support (Accessed: 11 June 2026).
HM Revenue & Customs (2025) Grant Funding Application Guidance: April 2024 to March 2027. Available at: https://www.gov.uk/government/publications/hmrc-grant-funding-application-guidance/grant-funding-application-april-2024-to-march-2027 (Accessed: 11 June 2026).
HM Revenue & Customs (2025) Grant Funding Application Guidance. Available at: https://www.gov.uk/government/publications/hmrc-grant-funding-application-guidance (Accessed: 11 June 2026).