The Power of Partnership: the benefits, challenges and impact of the Collaboration Fund 

The Collaboration Fund is the most ambitious element of the six-year Home-School-Community programme, which brings together organisations that work across the three most significant areas of a child’s life – their home, their school, and their community.  This approach to grant-making has required a hands-on, continuous learning process for all involved. The Fund supported the creation of 12 locally based collaborations, each responding to a specific need. Each collaboration involves at least one school and two to three voluntary sector organisations and is supported through the Collaboration Fund for a duration of three years. 

On 6 March 2025, John Lyon’s Charity hosted its first ever webinar for schools involved in the Collaboration Fund. Clare Gilhooly, our Home-School-Community Programme Manager, was joined by Laura Foster, Assistant Head at Whitmore High School in Harrow. They discussed the benefits, challenges and impact of working in this different way with local voluntary and community sector organisations. We chose the webinar format to create an accessible, collaborative space for schools to share learning and reflect on their experiences. Our aim was to highlight effective practice, encourage peer support, and spark new ideas for partnership working across the sector. 

This collaboration was established in 2022 between Whitmore High School, Wish Centre, Ignite Youth, and Harrow Association of Somali Voluntary Organisations. It started as a joint approach to improving the safety, wellbeing, and achievement of students in the context of increasing mental health challenges, exploitation, and the ever-growing waiting lists for external services. Through the collaboration, support such as psychotherapy, mentoring, sports, and parental guidance have been provided to support the students at Whitmore High School. 

Read on for some highlights of the conversation between Clare and Laura, in particular, how working in this collaborative way was different for the school, the challenges they faced along the way, and the benefits that they experienced. 

Benefits of the collaboration  

• The collaboration has created a stronger safeguarding culture between the school and its collaboration partners. Prior to the project, agencies would come into the school to meet the young people, but there was limited interaction between them and the school beyond this. A huge benefit of the collaboration has been that all professionals involved regularly share updates around safeguarding concerns, creating a shared accountability of safeguarding, and a more rounded understanding of each young person and the challenges that they are going through. In Laura’s words, “when you have everybody working together and sharing information regularly you do build that bigger picture for that child and are able to identify the support they need”. 

• The school now has excellent early intervention provision which has had a very beneficial impact on the students. Laura mentioned a specific young person who was at risk of being transferred to Alternative Provision prior to the collaboration, who is now a completely “transformed child”. The project has enabled the school to be truly inclusive and meet the needs of the whole child. 

How this was a different way of working for the school 

Laura explained how the collaboration has had a huge impact on how the school works with all external agencies,  not just those involved in this specific project.  Previously, referrals to outside services were often made in a scattergun way — isolated and reactive, with little follow-up or coordination. Now, the school takes a more integrated approach, building ongoing relationships with external partners and working together from the outset. There is a shared understanding of roles, responsibilities and a collective commitment to supporting each young person in a more joined-up, consistent way. 

The school’s commissioning process is more strategic now and focuses on commitment from agencies to partnership working, aligned objectives, and a shared accountability. When working together, the school expects regular updates from partner agencies and requires all partners to follow their safeguarding rules. This is a much more sustainable model. It has also made a huge difference for young people, as information sharing is really important to keeping children safe and identifying the right support for them. 

“I think as a as a collaboration, we have actually developed what I think is a model of best practice within a safeguarding culture.”  

Challenges and how these were overcome 

• Facilitating student acceptance by partner organisations. Laura discussed how one partner in the collaboration had very strict thresholds for accepting students, initially creating frustration within the school. Over time, through working together, the school gained an understanding of their eligibility criteria and were able to adapt to this. The school also refined their in-house support that was available to students to help with demand, and the partner organisation supported with this. The partner delivered training to in-house mentors so these mentors could provide lower-level support to students while they waited for mental health and wellbeing support from an external agency.  

• Capacity. Daily administration of the project has taken substantial time and oversight, including the management of referrals, coordination, ensuring facilities are available, and maintaining contact with parents and social workers. The school managed this challenge by refining the job description of a member of staff who ended up leading on the day-to-day running of the project. This ensured that the project was delivered to a high standard, and as an added bonus, that staff member received a developmental opportunity that was beneficial to them.  

• High demand from young people. Lots of young people were already familiar with some of the sports activities one of the partners already provided in the community and were keen to take part in school. The school tried a few different approaches to managing demand, such as accepting students on a first come first served basis or identifying a particular cohort in need. It was important for the school to be as inclusive as possible, whilst also enabling young people who would benefit most, to access the activities. In the end, some activities were expanded so that the intervention was running more frequently with additional funding provided by the school and delivered at lunchtime in addition to after school. The school was financially able to justify the expansion by focusing on key priorities for the school, including keeping children safe and protecting them from exploitation, which highlighted that the investment was necessary and worthwhile. 

“I think post-pandemic it has taught us that, you know, children’s needs are becoming more and more complex, and we don’t always have the expertise in school, no matter how hard we try and how much we invest. And actually, we do need to build positive relationships with these experts”. 

In summary, the collaboration has had a transformative impact on the school and how it works with external agencies to support the safety and wellbeing of its students. While there have been challenges along the way, they have all resulted in rich learnings and Laura describes the process of collaboration as absolutely worthwhile: 

“Absolutely do it. It’s worth it. And yes, it’s a lot of work, but in terms of the impact and what the benefits that you get from it, absolutely worth it”. 

Reflections and Feedback 

Teachers responded positively to the Charity’s first ever webinar, showing strong interest in the Collaboration model and actively engaging in the Q&A session that followed. Many participants shared reflections from their own contexts, asked thoughtful questions, and expressed enthusiasm for exploring similar approaches in their schools. The high level of engagement highlighted a real appetite for collaborative working and a desire to learn from peers. The webinar format proved effective in creating an accessible, inclusive space for schools to connect, exchange ideas and reflect on their practice. It offered a valuable opportunity to showcase what’s working well, build a sense of community, and inspire new ways of thinking about partnership work. We hope this marks the beginning of many more webinars, providing ongoing opportunities for learning and collaboration. 

---

Building Stronger Communities: The Impact of the Home-School-Community Strategy

The Covid-19 pandemic highlighted stark inequalities across society. The consequences of lockdowns were not felt equally: BAME communities were significantly impacted by the virus, while the prolonged closure of schools disproportionately affected children from disadvantaged backgrounds. This included families with limited financial resources, those with caring responsibilities, and children with Special Educational Needs and Disabilities. Covid-19 exposed and deepened these disparities.

Home-School-Community (HSC) is the strategy developed by John Lyon’s Charity to address these inequalities by increasing support for organisations working with children and young people in the Beneficial Area. Running from 2021 to 2027, the strategy is helping to rebuild the sector as it adapts to the post-pandemic world. Shortly after lockdowns ended, the Cost-of-Living crisis saw inflation rise to a 41-year high of 11.1% in October 2022. Once again, those with limited financial resources were disproportionately affected, spending a greater share of their income on essentials such as housing, food, and utilities. Meanwhile, many children and young people’s organisations faced soaring costs at a time when short-term Covid funding had ended, and new funding opportunities were scarce.

The ambitious HSC Strategy, with £22 million in additional funding over six years ringfenced from the Charity’s endowment, became a lifeline for these organisations. It enabled them to meet increasing and more complex demands while navigating financial shocks in an evolving economic environment. Unusually, HSC allowed organisations to hold multiple grants from John Lyon’s Charity simultaneously—a significant departure from standard grant-making practices, reflecting the severity of the challenges faced by longstanding, highly valued organisations in the Beneficial Area.

The £22 million in additional funding was allocated through five distinct but interrelated funds, designed to help organisations survive (Recovery Fund, Cultural Capital Fund, and Young People’s Foundation Small Grants Fund) and thrive (Replication Fund and Collaboration Fund). HSC was intentional in ensuring that the local voluntary sector remained strong enough to address the increasingly complex needs of children, young people, and their families—needs that the pandemic had exacerbated.

Four Years On

Recovery Fund – Twenty-six organisations were awarded Recovery Fund grants for their core costs, receiving between £90,000 and £150,000 over three years. These grants provided crucial breathing space, allowing organisations to determine their recovery path post-Covid and address underlying operational challenges. Four years on, all 26 organisations have survived, with most thriving in their new normal. Many reported that the funding helped them avoid redundancies, rebuild reserves, and secure additional funding, leaving them in a stronger financial position. Some organisations used the grant to move beyond day-to-day challenges, focusing on strategic objectives, recruitment policies, and fundraising. Others sought external expertise to improve financial management or bid-writing, strengthening their long-term sustainability.

However, some organisations are still in survival mode, as the funding landscape remains challenging. For a few, the Recovery Fund may have delayed, rather than prevented, their eventual closure. As a relationship-based funder, John Lyon’s Charity was committed to making a final attempt to help longstanding organisations address deep-rooted operational challenges. The focus on resolving underlying issues, alongside Covid-specific impacts, has now been incorporated into the Principal Grants Fund when awarding core cost grants.

Cultural Capital Fund – The Cultural Capital Fund (CCF) was designed to reinvigorate arts education post-pandemic and encourage schools to prioritise cultural activities as a means of addressing broader issues caused by Covid-19. To date the CCF has provided £3,637,890 for arts and cultural activities in schools over four years. Initially budgeted at £2.5 million, demand was so high that an additional £1.1 million was allocated from the HSC budget. The Fund has supported 39 arts organisations and 305 schools, benefiting 25% of the children and young people that live in the Charity’s Beneficial Area—many of whom rely on their schools as their only access to arts and cultural experiences.

The overwhelming demand and success of the Cultural Capital Fund has led to its incorporation into the Principal Grants Fund, ensuring that arts and cultural activities remain central to school life in the Beneficial Area. It is now open for applications from both Arts organisations and schools.

Young People’s Foundations Small Grants Fund – The Charity recognises the value of micro-organisations and small community groups embedded in local neighbourhoods. Often volunteer-led, these groups lack the capacity to access mainstream funding but played a vital role during the Covid-19 lockdowns. The Young People’s Foundations Small Grants Fund enables John Lyon’s Charity to reach these smaller organisations, that are often not eligible to apply directly to JLC, by leveraging the knowledge and networks of Young People’s Foundations (YPFs) in each borough. This mechanism allows grassroots organisations to access funding and support, build a track record of prudent financial management, and demonstrate their local impact.

The success of this approach has shaped the Charity’s strategic direction, recognising that YPFs are best placed to distribute smaller grants, while the Charity focuses on longer-term and larger-scale funding.

Replication Fund – The Replication Fund addresses gaps in provision of vital services, ensuring greater equity of provision across the Beneficial Area. It provides funding for organisations delivering successfully in one location to replicate their offer into a new area. This is done sensitively, with the support of both the local YPF and Local Authority, to ensure that the new service is successfully embedded into these new communities. For example, local authority areas can differ in the availability of support for care experienced young people taking on their first tenancies. With support from the Replication Fund, Settle Support has been able to replicate its service that enables young people to confidently transition into independent living and thrive. Settle have replicated its original offer in Barnet and Camden into Brent and Hammersmith & Fulham. The Fund enables successful service models to be replicated in underserved areas, ensuring all young people, regardless of location, have access to high-quality support.

The key criteria for successful replication projects have now been integrated into the Principal Grants programme, allowing the Charity to continue addressing service gaps where needed. Ingredients of projects that are a strong fit to replicate are those that have tight inputs, outputs and outcomes that can be ‘codified’, picked up and with the same inputs will broadly garner the same outcomes in a different location.

Collaboration Fund – The Collaboration Fund supports partnerships between schools and voluntary organisations, fostering innovative approaches that are often hindered by siloed funding structures. Post-Covid, the challenges facing children, young people, and families exceed the capacity of any single organisation, making collaboration essential.

This is the most complex and ambitious element of the HSC Strategy. Over four years, the Charity has invested in nine collaborative projects involving 28 organisations, with three additional collaborations in development. Each project is unique in its focus and partnerships, but common themes are emerging regarding the benefits and challenges of collaborative working.

What’s Next

With £18m committed as of March 2025, the final £4m is expected to be allocated by the end of the year. In collaboration with Lucent Consultancy, we are reflecting on key learnings to date, leading to the publication of a review on the impact of each of the five Funds, starting in late 2025. A final report in 2027 will capture the overall impact of six years of the HSC Strategy.

Insights from the HSC Strategy will continue to inform the Charity’s main grant-making programme. Best practices developed through the Core Recovery and Refurbishment Fund and the Cultural Capital Funds are already being integrated as early examples of this approach.

Conclusion

Four years into the HSC Strategy, its impact is evident. By responding to the inequalities exposed by the pandemic and evolving in response to new challenges, John Lyon’s Charity has strengthened the children and young people’s voluntary sector in the Beneficial Area. As the strategy progresses, the lessons learned will continue to inform the Charity’s approach, ensuring long-term sustainability for organisations and lasting benefits for the communities they serve.

---

Understanding Financial Sustainability for Small Voluntary Organisations – Insights from Ampacc

As a funder, John Lyon’s Charity are committed to understanding the needs and challenges faced by organisations supporting children and young people in our Beneficial Area.

The precarious financial situation of many small grassroots organisations, especially since the Covid-19 pandemic and the ongoing Cost-of-Living crisis, has been a growing concern for us. We’ve witnessed many of these essential small groups constantly struggling to survive, often without a clear understanding of the full costs involved in running their services. This financial instability threatens the continuity of the vital support they provide to young people.

In response, John Lyon’s Charity has taken proactive steps to help voluntary organisations better understand and manage their finances. In 2023, 35 locally-based voluntary organisations were supported, via the Young People’s Foundations (YPFs), to engage with Ampacc – a unique financial sustainability tool – and go through the online support process. As part of our Home-School-Community Strategy, we provided the funding for 25 locally-based voluntary organisations, and the remaining 10 were funded via Brent’s NCIL (Neighbourhood Community Infrastructure Levy) through the Young Brent Foundation.

What is Ampacc?

Developed by Clear Thinking Consultancy, Ampacc is a tool that enables small voluntary organisations to adopt universally-recognised full cost recovery principles. This helps groups accurately calculate the full costs of delivering their services, including both direct expenses like staff, travel and materials, and a proportionate share of overheads such as office rent, IT, and insurance.

By understanding these costs, organisations can make more informed financial decisions, ensuring their services are sustainable over the long term. Ampacc has been implemented with small voluntary organisations for over six years, and its impact is clear: it helps charities articulate their financial needs more effectively to funders – like John Lyon’s Charity – and allows for better resource allocation and long-term stability.

Insights into a Thriving Small Charity Sector – Webinar

On 17^th October, Clear Thinking Consultancy (CTC) will be hosting an online webinar with funders and their funded partners focused on Ampacc, with the aim of exploring and sharing insights on how to support a more robust and sustainable small charity sector – one that is truly thriving and, therefore, is best placed to support its communities to thrive too.

The session will feature Clare Gilhooly, Home-School-Community Programme Manager at John Lyon’s Charity, alongside CTC Director Kita Ikoku and Donna John from IGNITE Youth. In this session, they will talk about about Ampacc’s findings from carrying out financial analysis and support for voluntary groups to implement full cost recovery during the past twelve months, and what this tells us about the support needs for the wider small charity sector.

These workshops offer a valuable opportunity for participants to explore the challenges facing small charities today and discover actionable solutions to help them thrive. We encourage everyone to join via the link below and contribute to building a stronger voluntary sector equipped to support its communities.

---

Key Findings from the Ampacc Programme

1. Most of the workforce is in insecure or unpaid employment

At the start of the process, participating organisations tell us how many and what types of workers they engage to deliver services. Through this we learned that only 16% of the workforce is on PAYE with most of them paid on a sessional basis or working in a voluntary capacity (58%).

For many organisations this is because they do not have the long-term secure funding that would give them the confidence they need to commit to increasing their payroll, or the structures in place to meet their increased responsibilities as an employer. This also accounted for many founders invoicing their organisation as a contractor.

2. Levels of reserves aren’t getting any better for micro and small voluntary organisations

Various pieces of research during the pandemic made clear that reserves amongst smaller voluntary organisations were low. Out of those that we worked with, over 60% were micro and small (up to income of £100k) and out of those, 60% of them had fewer than a month of running costs in reserves. We saw several examples of founders who were not taking a consistent income out of fear that, to do so, would leave the organisation in financial difficulties.

It is widely considered that a minimum of three months’ running costs put aside in a separate bank account (and not used as ongoing support for cash-flow) is the minimum necessary for an organisation to be able to function well and respond to unforeseen events.

The table below shows the level of reserves held by each of the 35 groups that were supported.

3. The sector is struggling to find, develop and retain talent

Anecdotally, it became clear early on that the sector has lost lots of its time and capacity to HR issues especially recruitment. We learned that participating organisations were putting out recruitment posts two or even three times without success and had lost staff due to not being able to increase its salaries in line with cost of living increases. We noted that only 1 in 4 participating organisations have an intern – this accounts for 8% of all workers, reducing to 2% if we omit figures relating to one outlier organisation (who strategically support a higher number of interns as part of their core work).

Training budgets were nominal and low – commonly equating to £50 per person or £500 – £1,000 in total.  Many participating organisations did not have a training budget at all and, whilst they made good use of the free training and resources available from their local YPF, did not feel able to respond to specific and specialist support needs within their workforce.

4. Space matters

Where space is made available for little or no rent, usually from the local authority, this makes a significant difference to the total amount of overheads and, therefore, the costs of the charity. In places where space was at a premium and particularly with music and sports development charities, where specialist equipment and/or extensive space was needed to deliver services, this inflated associated costs for these small charities, making it challenging for them to demonstrate value for money and to keep their costs competitive.

5. The sector is paying too much to meet their governance and operating obligations

There are some costs that charities cannot avoid paying and, in some areas, these organisations are committing a significant proportion of their expenditure on them. Costs like insurance, IT and auditors/independent examiners are essential and, where high, they can impact heavily on a charity that is not apportioning their overheads against their project costs correctly. We also noted high costs for some participating organisations for office equipment whereas others had been able to benefit from accessing these at little or at no cost through existing business relationships or their local YPF.

All these expenses affect an organisation’s overheads and, therefore, their service costs. Where an organisation is being funded less than it costs them to deliver their services they are creating and compounding a deficit, which is overstretching the workforce and impacting on service quality.

Moving Forward  – Conclusion by John Lyon’s Charity

This initiative has not only helped these organisations better understand and manage their costs but also provided valuable insights into the state of the small charity sector, which underscores the importance of doing more to help these essential groups thrive.

We strongly encourage all organisations applying for funding to invest time in fully understanding the true costs of delivering their services and to use tools like Ampacc to clearly communicate those costs to funders.

We also would like to call on funders, within their funding application processes, to make provision for applicants to share the consideration they have given to implementing full cost recovery and covering their overheads so that funders can be confident of resourcing the services that they are funding fully.

As we continue to work with Clear Thinking Consultancy and roll out the Ampacc programme to a further 40 organisations this year, we remain committed to strengthening the small charity sector. The insights we gain from this process will shape how we support these vital organisations in the future, ensuring they are equipped to thrive and continue their essential work within their communities.

To find out more about Ampacc, organisations should contact their local YPF or with Clear Thinking Consultancy directly.