The role of wellbeing in grant funding

Charities can boost their chances of securing funding by focusing on an increasing interest among funders in improving wellbeing. This includes backing projects that support people’s mental and physical health as well as their emotional resilience.

 

Interviews with those supported can help prove to funders the effectiveness of their funding. But increasingly a deeper dive is sought after, whereby the financial benefits of improving people’s wellbeing can be calculated. This already happens with the UK Government’s Treasury.

 

In this article we look at evidence that funders could use this same government measurement to further gauge how their grants reap rewards for society. We also look at how charities are already calculating their impact on people’s mental health and some of the funders who are prioritising evaluation of wellbeing.

 

 

Calculating wellbeing

 

Currently the Treasury looks to measure the financial benefit of wellbeing gained from each of the projects it funds.

Through this, it looks to calculate a ‘Wellbeing Adjusted Life Year’ (WELLBY), measuring the extent to which wellbeing has increased, often using the measure of Life Satisfaction.

 

As well as measuring benefits around health, earning power, and education WELLBY can also capture improvements, such as the emotional benefits of leisure activities and how community involvement can tackle loneliness.

 

Think tank Pro Bono Economics (PBE) is urging funders to adopt this measure, with its Chief Economist Jon Franklin saying it can offer a more “robust, insightful, and proportionate impact measurement”.

 

He adds that using this measure comes in the context of a “growing credible evaluation movement whereby more and more funders and social sector organisations are applying monetary value to increases in wellbeing to assess policies and interventions”.

 

“With practical tools, considered support, and a focus on measuring people’s lived experience, funders and policymakers can make smarter investment decisions that are evidence-based and impact-focused,” he said.

 

 

Good causes measuring wellbeing

 

In recommending funders follow the Treasury’s lead on measuring wellbeing, PBE has looked at evaluation of charitable programmes backed by Spirit of 2012,  the social legacy organisation following the 2012 London Olympics and Paralympics. This was founded with a £47m National Lottery Community Fund endowment for 13 years from 2013.

Women’s social action initiative EmpowerHER is among programmes looked at. The charity delivered £5 of wellbeing benefits for every £1 spent using the Treasury’s valuations. It works to support challenges facing African women and their families in Scotland. This includes offering a support network and aid.

Another is disability programme Get Out Get Active, which delivered £3.70 of wellbeing benefits for each £1 invested. This supports disabled and non-disabled people to participate in physical activity such as swimming clubs and walking groups. Seven in ten of those that took part have continued to be active.

Meanwhile, surf therapy youth mental health scheme City To Sea Wave Project, which ran for three years until 2021, also delivered benefits that outweigh costs, according to PBE’s analysis. This supported young Londoners with complex physical and mental health needs who were vulnerable to isolation.

 

Funders prioritising wellbeing

 

Among funders already looking to support health and wellbeing is the Peter Sowerby Foundation, which in June 2025 launched its Impact in Healthcare Fund. Strong evaluation is key to its funding awards with the funder saying it is “placing greater emphasis on projects that are already delivering tangible impact”.

 

“We are witnessing a critical moment in health and social care. With services under strain, the need for innovation and locally-led solutions is more urgent than ever,” said the Foundation’s Chair David Aspinall. 

 

“This new strategy focuses our funding where it can make the greatest difference – in communities, through technology, and by preventing illness before it escalates.”

 

Another is the Co-op, which, in June 2025, launched a £5m pot of funding to improve mental wellbeing, as well as provide opportunities for young people and support people’s access to food. This was made through the retailer’s Local Community Fund.

 

“Our members have told us that they want Co-op to focus on the real issues affecting people’s lives, and act on the issues that matter most, said the Co-op’s Head of Community Partnerships, Funding and Impact David Luckin.

 

The importance of data gathering to charities, as they look to improve and assess the impact of their support, is a priority of mental health and wellbeing charity Prudence Trust. In 2025 it handed £1m worth of funding to five to six charities to use on improving their use of data.

 

“We believe well-evidenced practice is vital to advancing young people’s mental health and we believe this sector can have even more impact when they have the skills and tools to make the most of what they know,” said the Trust.