The National Lottery Community Fund has officially opened applications for The Step Forward Fund, a groundbreaking and equity-driven grant programme designed specifically to support grassroots organizations led by and serving Global Majority and racially minoritised communities across England. With a total pot of 4 million pounds available and individual awards ranging from 100,000 to 225,000 pounds per organization, this fund represents one of the most significant targeted investments in community-led organizations from racially minoritised backgrounds that England has seen in recent years.
This article provides a comprehensive, in-depth guide to The Step Forward Fund — what it is, who it is for, how much funding is available, what the money can be used for, how to apply, and what to expect throughout the process.
What Is The Step Forward Fund?
The Step Forward Fund is a National Lottery Community Fund grant programme that has been co-designed in partnership with The Phoenix Community Trust and their partners. It was developed collaboratively with and for Global Majority and racially minoritised communities, ensuring that the language, design, and priorities of the fund are grounded in the authentic experiences and self-determined needs of the communities it seeks to serve.
The fund has been created to address a specific and well-documented challenge: many grassroots organizations led by Global Majority and racially minoritised communities have successfully received smaller project-based grants, but struggle to make the leap to larger, more sustained investment that would allow them to grow, develop their organizational infrastructure, and deliver long-term impact. The Step Forward Fund is designed to bridge exactly that gap.
It provides multi-year funding to help organizations:
- Continue to advocate for and care for their communities
- Develop and grow their organizational capacity
- Sustain and build on the positive impact of their work
This fund is part of The National Lottery Community Fund’s broader commitment to equity in grant-making — specifically its commitment to investing life-changing funding where there is greatest need and putting community power at the heart of how grants are designed and awarded.
The National Lottery Community Fund’s Commitment to Equity
The Step Forward Fund does not exist in isolation. It is one expression of a much deeper institutional commitment from The National Lottery Community Fund to address systemic inequity in the funding landscape. For decades, research and lived experience have consistently shown that grassroots organizations led by Black, Asian, and racially minoritised communities receive disproportionately less funding than their white-led counterparts — even when they are delivering equally vital or more impactful work in their communities.
The Step Forward Fund directly challenges this imbalance by:
- Prioritizing organizations that have historically been underserved or excluded from larger funding streams
- Centering lived experience of structural racism and oppression as a core eligibility criterion
- Using language co-developed with Global Majority and racially minoritised communities themselves
- Partnering with The Phoenix Community Trust and their networks to ensure community power is embedded in the fund’s design and governance
What Is Meant by “Global Majority and Racially Minoritised Communities”?
The Step Forward Fund uses specific language that has been carefully chosen in consultation with the communities the fund is designed to serve. The term “Global Majority and racially minoritised communities” includes, but is not limited to, the following groups:
- Black, African, and Caribbean communities
- People of any mixed or multiple ethnic background
- Asian communities
- Arab communities
- Jewish communities
- Gypsy, Roma, and Traveller communities
Importantly, this funding is specifically intended for people and organizations with lived experiences of structural racism and oppression. Lived experience in this context refers to knowledge gained through direct, first-hand, and personal experience — not simply professional knowledge or academic understanding of these issues.
The language used in this fund has been developed through research with these communities and agreed upon with The Phoenix Community Trust and their partners. The National Lottery Community Fund uses this language because the communities themselves are the authority on how they wish to be described and represented.
How Much Funding Is Available?
The Step Forward Fund has a total of 4 million pounds available to award across England.
The funding is structured as follows:
- Grants are provided at a rate of 50,000 to 75,000 pounds per year
- Funding periods run for between 2 and 3 years
- The minimum grant available is 100,000 pounds (50,000 pounds per year for 2 years)
- The maximum grant available is 225,000 pounds (75,000 pounds per year for 3 years)
- The National Lottery Community Fund expects to make between 20 and 30 awards in total
This multi-year funding model is significant. Rather than offering one-off project grants, The Step Forward Fund provides sustained investment that gives organizations the financial stability and time needed to genuinely develop their capacity, implement longer-term plans, and grow in a sustainable way.
To be eligible for The Step Forward Fund, an organization must meet all of the following criteria:
- Have received a small grant of 20,000 pounds or less from The National Lottery Community Fund between April 2023 and March 2026
- Have applied to the Reaching Communities fund between April 2023 and March 2026 and been unsuccessful in that application
- Have a board or leadership team where the majority of members are from Global Majority and racially minoritised communities
- Prioritize services and activities specifically for Global Majority and racially minoritised communities
- Have an annual income of less than 300,000 pounds per annum, based on a three-year average
These criteria have been set deliberately to target organizations that are at a specific and recognizable stage of their development — organizations that have already demonstrated their value and potential by receiving some National Lottery funding, that have shown ambition by applying for larger grants through Reaching Communities, and that are now ready to take a meaningful step forward with the right level of support.
Applications from the following will not be considered:
- Individual people — this fund is exclusively for organizations, not individuals
- Organizations that do not have a majority of board or leadership members from Global Majority and racially minoritised communities
- Organizations whose primary focus is not on services and activities for Global Majority and racially minoritised communities
- Organizations based outside of England — this fund is for England only and does not apply in Northern Ireland, Scotland, or Wales
- Organizations with an annual income of 300,000 pounds or more
- Organizations that did not receive a small National Lottery Community Fund grant between April 2023 and March 2026
- Organizations that did not apply to Reaching Communities between April 2023 and March 2026
The Funding Aims of The Step Forward Fund
The Step Forward Fund has been designed with clear and purposeful aims that go beyond simply providing money. The broader purpose and specific aims of the fund are as follows:
The overall purpose is to:
- Provide funding and practical support to grassroots organizations from Global Majority and racially minoritised communities
- Help them transition from smaller, project-based funding cycles to larger grants and sustained investment
The specific funding aims are to:
- Invest in the genuine growth and organizational development of grassroots organizations
- Provide encouragement and support to organizations that want to deliver on longer-term strategic plans
- Generate learning that improves The National Lottery Community Fund’s own grant-making practice
- Influence positive and systemic changes across the wider funding and community development sector
What the Funding Can Be Used For
The Step Forward Fund is intended to support organizational growth and sustainability, not just project delivery. While specific eligible expenditure will be detailed in the application guidelines, the fund is broadly designed to help organizations:
- Develop and strengthen their organizational infrastructure and capacity
- Invest in staff, leadership, and governance
- Sustain and expand the services and activities they provide to their communities
- Build the systems, processes, and partnerships needed for long-term impact
- Advance their ability to engage with larger funding streams in the future
Applicants are encouraged to review the full guidance on the National Lottery Community Fund website for detailed information on eligible spending categories.
The Step Forward Fund wants to see applications that clearly demonstrate:
- The organization’s roots in and connection to Global Majority and racially minoritised communities
- The lived experience of structural racism and oppression among the organization’s leadership and community
- A clear vision for how the funding will enable the organization to grow and deepen its impact
- Evidence of existing work and positive outcomes for the community
- A credible and realistic plan for how the multi-year grant will be used
- Alignment with the fund’s aims around organizational development, sustained advocacy, and community care
How to Apply
Applications for The Step Forward Fund must be submitted through The National Lottery Community Fund’s application portal. The programme is currently open to applications.
Key application details:
- Project location: England only
- Grant amount: Between 100,000 and 225,000 pounds
- Decision timeline: Applicants can expect a decision within approximately 21 weeks of applying
- Programme status: Open to applications
Prospective applicants are strongly encouraged to read all available guidance on the National Lottery Community Fund website before beginning their application, and to make use of any available support resources to ensure their application is as strong as possible.
For organizations that have previously been unsuccessful in applying for larger funding, or that feel uncertain about whether they qualify, the fund’s co-design with The Phoenix Community Trust and their partners means there is genuine community expertise embedded in the programme to support the process.
Once an application has been submitted, The National Lottery Community Fund will review it for eligibility and quality. Organizations can expect to receive a decision within approximately 21 weeks. Successful organizations will receive multi-year funding and the support needed to begin implementing their plans.
The fund is also designed to generate learning — meaning that The National Lottery Community Fund will be actively working with funded organizations to understand what is working, what challenges arise, and how the experience of this fund can improve future grant-making practice and influence the wider sector.
Visit HERE for more information about the Step Forward Fund 2026.
Conclusion
The Step Forward Fund represents a genuine and substantive commitment to equity in community funding in England. For grassroots organizations led by and serving Global Majority and racially minoritised communities that have been navigating the challenging gap between small project grants and the larger investment they need to grow, this fund could be genuinely transformational. With between 100,000 and 225,000 pounds available per organization, a multi-year funding model that allows for real organizational development, and a design process that has centered the voices and language of the communities it serves, The Step Forward Fund is a rare opportunity to take a meaningful step forward.
If your organization has received a small National Lottery grant, has tried and not yet succeeded with a Reaching Communities application, is led by and serves Global Majority and racially minoritised communities, and has an annual income below 300,000 pounds, then this fund was designed with you in mind. The programme is currently open to applications. Review the full eligibility criteria on The National Lottery Community Fund website, prepare a thoughtful and detailed application, and take the step forward your organization has been working toward.
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