Hannah Clay, Head of Grants & Impact, shares more information about the upcoming changes to the Foundation’s grant making approach.

After months of collaborative work with colleagues, partners and stakeholders to redesign our grant-making from the ground up, we're delighted to be reopening our programmes later this month with a refreshed approach.

Pausing applications over the summer wasn’t an easy decision. We know how vital funding is for community groups and charities across Sussex, especially during such challenging times. But after nearly two decades of local grant making, we recognised it was time to step back and ask: how can we make our processes better for the people who use them?

In recent years, demand for funding across the charity sector has grown rapidly. Success rates have fallen, our application process wasn't working for many, and charities told us that it wasn't always clear what was needed for a successful application. Our systems and processes struggled to keep up with the demand.

We wanted to do better – for the charities at the heart of Sussex communities, and for the donors and fundholders who make our work possible. So, we’ve taken this time to refresh our grant making, making it simpler, more strategic, and more in line with our values as an open and trusting funder.

A simpler, two-step process

One of the biggest changes is the introduction of an Expression of Interest (EOI) stage. Instead of starting with a long application form, which takes up valuable time and energy from community groups, we will now ask applicants to submit a short summary of their work and funding request.

• This is more proportionate, reducing upfront work at the initial stage.
• It’s more accessible, opening the door to smaller or less experienced organisations.
• It allows us to respond more quickly and flexibly – sometimes inviting a full application, sometimes awarding directly where we already have the information and donor match we need.

What this means for charities

Our goal is to reduce time and stress for charities, so they can focus on what matters most: their communities. 

• Feedback will be quicker, and funding more often unrestricted, helping organisations adapt to changing needs.
• A new online applicant portal makes it easier to track progress, upload documents and reduce duplication.
• Some funds will run on a rolling basis, so we can be more responsive when urgent needs arise.

Above all, we’re committed to listening and learning – making sure charities feel heard, and that their insights shape our ongoing improvements.

What this means for donors

For our Fundholders and other donors, the changes mean more choice, flexibility, and a closer connection with local work.

• The EOI stage will generate a wider pool of opportunities to put to our fundholders, including the possibility for ambitious multi-year funds
• Donor priorities can be more closely matched, ensuring giving has the most meaningful impact.
• By reducing unnecessary admin, we can spend more time collaborating with donors to build long-term community benefit, and allow more creative approaches to grant making

What this means for Sussex Community Foundation

For the Foundation, these changes will allow grant making to be more strategic, more streamlined, and more focused on building meaningful relationships.

Our team is evolving in line with these changes. Our three new Grants & Relationship Managers will work directly with both charities and donors, supported by two part-time Grants Administrators and myself as Head of Grants & Impact. Together, we’ll focus on building strong relationships and using our local insight to guide funding where it can make the greatest difference.

Looking ahead

This is just the start. Change always takes time to implement, and we know there will be more learning to do. We’ll keep reviewing and improving – and we’ll keep listening.

But we believe this new approach marks an important step forward for Sussex Community Foundation. It will allow us to respond more flexibly, to connect donors closely with inspiring local work, and to create a grant making process that is fairer, clearer, and better aligned with today’s challenges.

We’re confident that these changes will help us support Sussex communities in the best way possible - now and into the future.

Martin Roberts looks into the latest data on Inheritance Tax (IHT)

Although only about 4% of UK deaths result in a liability to IHT, there were still around 27,000 estates paying IHT in 2020/21. These naturally tend to be concentrated in the wealthier parts of the country and especially those where average property values are higher.

According to the latest published statistics, the Taxman took £5.76bn in IHT in the UK in 2020/21, and estates in the South East were the second biggest contributor to that figure after those in the London area. In fact, the South East contributed a fifth of the UK total - 4,990 estates in the South East paid a just over £1bn in IHT.

In the Sussex area, 176 of those estates paying IHT were in Brighton & Hove; 127 were in the Chichester area, 105 in Arundel and the South Downs, 89 in Lewes and 67 in Mid Sussex. In these five Sussex areas alone, 564 families paid a total of £131m in IHT, an average of over £230,000 per estate.

IHT is currently charged at 40% on assets (in excess of the threshold levels) which are transferred on death, including gifts made within seven years of death and gifts made to and assets contained in certain types of trusts.

There are IHT exemptions for transfers of assets between spouses and civil partners and for transfers to qualifying charities. There are also reliefs for Agricultural and Business Properties and also for Residences transferred to direct descendants.

As a result, most estates (over 95%) pay nothing as they fall below the threshold levels at which IHT kicks in, after applying allowances and reliefs. In fact, 81% of IHT in 2020/21 came from net paying estates valued at £1m or more, and these estates actually amounted to only 4.3% of all estates requiring a grant of representation.

Of course, as the age of the taxpayer increases, less of their wealth tends to be tied up in property, which can attract exemptions or reliefs, and more is held in cash and securities. So, the vast majority of IHT (82%) is paid on estates where the deceased is over 75.

It’s worth remembering that charitable donations to qualifying charities are tax free during your lifetime, and that if charitable donations are left in the will, they are taken off the value of the estate before IHT is applied.

In addition, if 10% or more of the taxable estate is left to charity, a reduced IHT rate will apply to the rest of your taxable estate not passing to charity. Currently, the normal IHT rate of 40% rate is reduced to 36%, saving 4% on the whole of the rest of the taxable estate.

As a result, any negative effect on non-charity beneficiaries is likely to be significantly reduced and, depending on the figures, the effect of the reduced IHT rate can sometimes mean that more is received by the eventual non-charity beneficiaries than would have been the case before the donation.

We always recommend those looking at their estate planning take qualified professional advice. In this case, if the estate is one of the 4.3% facing a potential IHT liability, taking early advise on all the reliefs and exemptions to IHT, including charitable donations to qualifying organisations like Sussex Community Foundation, might well be worthwhile.

At Sussex Community Foundation we make grants to local charities, groups and organisations to address specific needs in the community. Our donors’ and fundholders’ philanthropic effort make an enormous difference in the lives of many in Sussex. Read more about the stories and groups we support here.

Martin Roberts, Trustee