Community grants and funding give transport schemes, charities and public services the money to start, run and grow their services. The money comes from the National Lottery, central government, councils, trusts and foundations. This guide explains where to look, what each funder wants, and how to build applications that actually win the money.
Key Takeaways
- Blend your funding. No single grant keeps a service alive, so mix National Lottery money, council grants, trust funding and earned income so one cut cannot sink you.
- The National Lottery Community Fund is the largest option. Its Awards for All programme offers £300 to £20,000 to most community groups, with decisions in roughly twelve weeks.
- Government transport money now flows through councils. From 2026 to 2027 the new Local Authority Bus Grant sits with your local council, so build the relationship there.
- Capital and revenue are different pots. Vehicles and equipment count as capital, while wages and running costs count as revenue, and funders rarely let you swap between them.
- Good data wins bids. Funders want passenger numbers, trip records and clear outcomes, so accurate reporting turns one grant into a track record for the next.
What are community grants and funding?
Community grants and funding are sums of money awarded to charities, community groups and public services to deliver work that benefits local people. Unlike a loan, a grant does not have to be paid back. In return, the funder asks you to spend the money on agreed activities and to report on the results.
For transport schemes, that work might mean buying an accessible minibus, training volunteer drivers, or subsidising fares for older and disabled passengers. The same principles apply across the wider public and voluntary sector, whether you run a dial a ride service, a village hall, or a home to school transport contract for your council.
Most funders share a simple test. They want to see a clear local need, a realistic plan, and honest numbers that prove your service makes a difference. Get those three things right and you can approach almost any grant with confidence, from a small parish pot to a national programme.
What types of community funding grants can you apply for?
Grants fall into a few broad types, and knowing the difference saves you from applying to the wrong pot. The two that matter most are capital funding and revenue funding. Funders almost never let you move money from one to the other, so match your request to the way each programme is set up.
- Capital funding. One off money for assets you keep, such as vehicles, wheelchair lifts, ticket machines or IT equipment. Councils often hold more capital than revenue, so vehicle bids can be easier to win.
- Revenue funding. Money for running costs like wages, fuel, insurance and volunteer expenses. It is harder to find and usually shorter term, so plan for how the service continues afterwards.
- Core funding. Unrestricted money that supports your organisation as a whole rather than one project. It is rare and prized, so treat any offer of it with real care.
- Match funding. Money a funder gives only if you raise a share yourself, which spreads risk and shows local commitment.
You will also see one off project grants and multi year grants. Multi year awards give far more stability, because you can plan staff and services beyond a single year. Small grants tend to have light applications and quick decisions, while larger sums bring longer forms, deeper scrutiny and more detailed reporting.
Where can community schemes find grants?
Grants come from four main places: the National Lottery, government, councils, and independent trusts and foundations. A resilient scheme draws on several at once. Below are the biggest and most relevant sources for community transport and the wider voluntary sector in 2026, with links to check current rounds and deadlines.
The National Lottery Community Fund
The National Lottery Community Fund is the largest non government funder of community projects in the UK, distributing hundreds of millions of pounds a year. Its Awards for All programme offers £300 to £20,000 for up to two years, with a short form and decisions in roughly twelve weeks.
You do not need to be a registered charity to apply. Constituted community groups, not for profit companies, community interest companies, parish and town councils and schools can all be eligible. For larger work in England, its Reaching Communities programme funds projects from £10,000 upwards over one to five years, with equivalents in Scotland, Wales and Northern Ireland.
The Motability Foundation
The Motability Foundation funds charities and organisations that help disabled people travel, which makes it a natural fit for community transport. It committed fifty million pounds to the accessible transport sector and, between April 2024 and March 2025, awarded fourteen million pounds to thirty three organisations, according to the Foundation.
Its community and shared transport grants can cover vehicles, staff and volunteer costs, and work that helps a scheme scale up or stay resilient. Rounds open and close through the year, so check the Foundation website and the Community Transport Association for the latest deadlines and eligibility before you start writing.
Your local council
Local councils remain one of the most important routes to money, and not only for transport. Most run small community grant schemes for local groups, and many hold larger pots for specific priorities such as loneliness, health inequality or rural access. Speak to your council early, because officers often know about funding before it is advertised.
Trusts and foundations
Thousands of charitable trusts and foundations give grants each year, from small local funds to large national bodies. Many focus on themes such as older people, disability, rural life or wellbeing, which overlap neatly with community transport. A local infrastructure body or council for voluntary service can help you find trusts that match your work.
How has government funding for local transport changed in 2026?
Government funding has moved closer to local councils, which changes how you should chase it. Two shifts matter most in 2026. The first covers general community money, and the second covers transport money specifically. Both point to the same lesson: your council is now the key relationship for public grants.
From April 2026 the UK Shared Prosperity Fund was replaced by two new streams, the Local Growth Fund and the Pride in Place Programme, according to the House of Commons Library. Pride in Place directs long term money into selected neighbourhoods, so it is worth checking whether your area is included.
On transport, the Department for Transport has consolidated its bus funding into a single Local Authority Bus Grant from 2026 to 2027, according to GOV.UK. Councils set their own spending priorities through Local Transport Delivery Plans, so a strong case to your council can unlock support for community services.
This matters for central government contracts too. National programmes increasingly ask councils to plan and deliver locally, rather than awarding money direct to small operators. For most schemes, the practical move is to build a genuine partnership with your council and show how you help deliver its transport and health priorities.
How do you write a strong grant application?
A strong application is clear, honest and easy to assess. Funders read hundreds of bids, so make yours simple to say yes to. Answer the exact question they ask, use plain language, and let real numbers do the persuading. The steps below apply whether you seek five hundred pounds or half a million.
- Read the criteria first. Check you are eligible and that your project fits the funder's aims before you write a word, because a mismatch wastes everyone's time.
- Lead with the need. Show the local problem with evidence, such as isolated villages, missed medical appointments or passengers with no other option.
- Set clear outcomes. Say what will change and how you will measure it, for example the number of trips delivered or passengers helped each month.
- Build a realistic budget. Cost every item honestly, split capital from revenue, and explain any match funding you bring.
- Plan for the future. Tell the funder how the service continues once their money ends, because sustainability reassures them.
If a bid is declined, ask for feedback and apply again. Many successful grants follow an earlier no. Do not simply resubmit the same form. Show how the project has developed or how you have answered the concerns raised, and you turn a setback into a stronger second attempt.
How do you manage and report on a grant once you win it?
Winning the grant is the start, not the finish. Funders expect you to spend the money on what you promised and to report on the results, often with numbers as well as stories. Good record keeping protects your funding, keeps you compliant, and builds the evidence you need for the next application.
Most funders ask for two things: how the money was spent, and what difference it made. That means tracking passenger numbers, trips delivered, mileage and outcomes across the year. Trying to gather this from paper run sheets at the last minute is slow and risky, and small errors can undermine an otherwise excellent report.
This is where the right software earns its place. A single platform that records bookings, journeys, passengers and costs turns reporting from a scramble into a few clicks. It also gives you the live evidence funders love, so each grant you deliver well becomes proof that helps you win the next one.
For the wider picture of how grants sit alongside fares, membership and other income, see our guide to community transport finance. If your work touches health services, our guide on securing NHS funding shows how to build a case for that money too.
Frequently asked questions
What is the difference between capital and revenue grant funding?
Capital funding pays for assets you keep, such as vehicles, lifts or equipment. Revenue funding pays for running costs, such as wages, fuel and insurance. Funders rarely let you move money between the two, so read each programme carefully and match your request to the type of money on offer.
Do you need to be a registered charity to apply for community grants?
Not always. Many funders, including the National Lottery Community Fund, accept applications from constituted community groups, not for profit companies, community interest companies and parish or town councils. You usually need a bank account, a governing document and a group of people who run the organisation, rather than formal charity status.
What is the biggest funder of community projects in the UK?
The National Lottery Community Fund is the largest non government funder of community projects, distributing hundreds of millions of pounds each year across the UK. Its Awards for All programme is the most accessible starting point for smaller groups, offering grants of £300 to £20,000 with a straightforward application.
Can community transport schemes still get government funding directly?
Increasingly, government money flows through local councils rather than direct to small operators. From 2026 to 2027 the Department for Transport consolidated bus funding into a Local Authority Bus Grant held by councils. The practical route is to partner with your council and show how you deliver its transport priorities.
How long does a grant application take to be decided?
It depends on the size of the grant. Small grants such as Awards for All are often decided in around twelve weeks. Larger programmes and multi year awards take longer, sometimes several months, because they involve deeper checks. Always read the funder's stated timeline and apply well before you need the money.
What is match funding and why do funders ask for it?
Match funding means a funder gives money only if you raise a share yourself, from fares, donations or another grant. Funders ask for it to spread risk and to prove local commitment to your project. Even a modest match shows that your community backs the service, which strengthens your whole application.
How can transport software help with grant applications and reporting?
Transport software records bookings, journeys, passengers, mileage and costs in one place. That gives you the passenger numbers and outcomes funders want to see, both when you apply and when you report. Clean, live data makes applications more convincing and turns end of grant reporting into a quick, reliable task.
