How we're funded
Our origins
Friends Provident Foundation was established in 2004 as part of the creation of Friends Provident plc from the mutual company Friends Provident Life Office. When the company demutualised, some of the unclaimed shares in the new company were set aside or gifted by members to the new independent charitable foundation.
Our founding gift reflected the company’s Quaker values, fairness, stewardship, and social responsibility. Those principles continue to shape our work today.
Our endowment
The majority of our income comes from the returns on our endowment investments. We invest this capital responsibly and transparently to ensure that how we invest is as mission-aligned as what we fund.
Our investments are actively managed to deliver both financial resilience and social impact, and we use our influence as a shareholder to drive positive change in the wider economy.
We publicly share information about:
- Our investment strategy and beliefs
- Our current investment portfolio and managers
- How we vote and engage as a shareholder
- Annual impact reports and updates
Donor-funded grants
The majority of the funds that we distribute as grants are drawn from our endowment. However, alongside this we are supported by donations from external funders, all of which are distributed directly to grantees. None of this donor income is used for our operating costs. Donors receive regular reports on grant impact.
Recent examples include:
- The Dandelion Fund – £400,000
- A private donor – variable amount ~ £100,000
These partnerships allow us to broaden our reach and support more of the applicants that approach us for grant funding.
Programme income
We also receive restricted income from partners and collaborating foundations to deliver a shared initiative led by the Foundation – the Foundation Practice Rating.
This is a collaborative project assessing diversity, accountability and transparency across UK foundations. This work is funded by several philanthropic partners, with Friends Provident Foundation also contributing resources from its own funds. The Foundation takes no fees from this work.
Transparency and accountability
We are committed to openness about how we use and steward our resources. Each year we publish our Annual Report and Financial Statements, which provide detailed information on our income, expenditure and investments.
In 2024/25, our total income came from three main sources: investment returns from our endowment, donations from private donors (including the Dandelion Fund), and restricted grants for the Foundation Practice Rating.
Together, these income streams allow us to use the whole of our capital for public benefit: funding change, influencing systems, and demonstrating how our economy can serve people and planet.