Step Change Fund for Charitable Transformation in UK

The Step Change Fund provides £10,000–£50,000 grants to organisations in Oxfordshire to drive transformational change in impact or financial sustainability. Eligible charities and social enterprises must demonstrate strong governance, serve disadvantaged communities locally, and propose strategic changes rather than continuing existing services.

Overview

The Step Change Fund supports organisations in Oxfordshire to achieve significant transformation in impact or financial sustainability.

The fund prioritises forward-thinking organisations ready to restructure, innovate, and improve long-term effectiveness, especially those serving disadvantaged communities.

Key Grant Details

• Location Focus: Oxfordshire
• Grant Amount: £10,000 to £50,000
• Funding Purpose: Organisational transformation (not routine service delivery)
• Funding Cap: Maximum 30% of annual turnover
• Eligible Turnover Range: £100,000 to £1,000,000
• Operational Requirement: Minimum 3 years

Core Objective: What is a “Step Change”?

A “step change” means a fundamental improvement in how an organisation operates, leading to:

• Greater social impact
• Improved financial sustainability
• Increased efficiency and resource use
• Stronger long-term resilience

This is not about small improvements—it is about strategic transformation.

What Types of Projects Are Supported?

Eligible Activities

Projects must clearly demonstrate transformation, such as:

• Strategic restructuring or organisational redesign
• Development of new delivery models
• Expansion to reach more beneficiaries
• Financial sustainability planning (e.g., income diversification)
• Governance or leadership strengthening

Use of Funds

• Core costs are allowed only if linked to transformation goals
• Activities must contribute directly to long-term improvement

Not Supported

• Continuation of existing services without change
• Short-term or low-impact activities
• खर्च already incurred before funding approval

Who is Eligible?

Eligible Organisations

• Registered charities
• Community Interest Companies (CICs)
• Charitable Incorporated Organisations (CIOs)
• Community benefit societies
• Similar not-for-profit structures

Mandatory Criteria

Applicants must:

• Be operational for at least 3 years
• Primarily serve beneficiaries in Oxfordshire
• Focus on improving outcomes for disadvantaged individuals
• Demonstrate strong governance and leadership

Governance Requirements

• Minimum 3 unrelated trustees
• Stable leadership across management and board

Financial Eligibility

Applicants must meet all of the following:

• Annual turnover between £100,000 and £1,000,000
• Requested funding ≤ 30% of turnover
• Maintain at least 3 months of operating reserves

These requirements ensure organisations have baseline financial stability.

Who is Not Eligible?

• National charities
• Public sector bodies
• Animal-focused organisations
• Individuals
• Organisations rejected within the last 12 months

Ineligible Project Types

• Vehicle purchases
• Retrospective funding (already incurred costs)

How to Apply

Step-by-Step Process

1. Assess whether your organisation needs a transformational change
2. Identify a clear strategy to improve impact or sustainability
3. Ensure governance and financial criteria are met
4. Prepare a proposal including:
   • Transformation plan
   • Expected outcomes
   • Beneficiary impact
   • Budget aligned with change objectives
5. Submit the application as per fund guidelines
6. Await evaluation and funding decision

How Applications Are Evaluated

Key assessment factors include:

• Strength of transformation strategy
• Potential for long-term impact
• Leadership and governance quality
• Financial stability and planning
• Clear benefit to disadvantaged communities

Why This Fund Matters

The Step Change Fund is important because it:

• Encourages long-term thinking over short-term fixes
• Helps organisations become more resilient and sustainable
• Improves outcomes for disadvantaged communities
• Strengthens the local non-profit ecosystem

It fills a critical gap by funding organisational transformation, not just service delivery.

Common Mistakes to Avoid

• Proposing continuation of existing services
• Weak or unclear transformation strategy
• Ignoring governance requirements
• Requesting more than 30% of turnover
• Insufficient financial reserves

Practical Tips

• Clearly define what will change and why
• Show measurable long-term impact
• Align budget with transformation goals
• Demonstrate leadership readiness for change

Frequently Asked Questions (FAQs)

1. What is the funding range?

Grants range from £10,000 to £50,000.

2. What does “step change” mean?

A significant transformation in how an organisation operates to improve impact or sustainability.

3. Can existing services be funded?

Only if they are part of a broader transformation strategy.

4. Who can apply?

Charities, CICs, CIOs, and similar organisations serving disadvantaged communities in Oxfordshire.

5. Is there a funding limit based on turnover?

Yes, funding cannot exceed 30% of annual turnover.

6. Are new organisations eligible?

No, organisations must have at least 3 years of operations.

7. What reserves are required?

At least 3 months of running costs must be maintained.

Conclusion

The Step Change Fund offers a unique opportunity for organisations in Oxfordshire to rethink and transform how they operate. By focusing on strategic change, strong governance, and long-term sustainability, the fund supports meaningful improvements in impact for disadvantaged communities.

Organisations with clear transformation plans, solid leadership, and financial stability are best positioned to benefit from this funding opportunity.