This letter is a formal submission from Pillar Nonprofit Network CEO Maureen Cassidy to the City of London’s Community and Protective Services Committee. It outlines Pillar’s concerns that proposed changes to the Community Grants Program, particularly restricting grants to capital projects only, would disproportionately exclude frontline and grassroots nonprofits, reduce equitable access to funding, and weaken the community services Londoners rely on.
Date: January 22, 2026
Dear Chair and Members of the Committee,
On behalf of nonprofit organizations across London, Pillar Nonprofit Network is writing to express serious concerns regarding the proposed changes to the City of London’s Community Grants Program, and the unintended but significant harm these changes could cause to frontline nonprofit services if approved.
Importance of the Community Grants Program
The Community Grants Program has historically provided modest but essential funding to support nonprofits and grassroots organizations in delivering programs and services that strengthen our communities. While relatively small in scale, this program often serves as seed funding that enables organizations to leverage additional investments from other levels of government, foundations, and other funders. These grants play a critical role in ensuring Londoners can access vital services, particularly those who are most vulnerable.
Impacts of Previous Funding Reductions
In 2024, the City reduced the Community Grants Program by half, effective in 2025, despite strong opposition from Pillar and the broader nonprofit sector. This reduction has had significant consequences for organizations, including:
● reduced ability to sustain or expand programs,
● increased competition for scarce alternative funding, and
● diminished capacity to respond to rapidly growing community need.
The previous cuts have already made it more difficult for nonprofits to plan effectively, deliver services, and respond to urgent community needs. Several small organizations have reported scaling back programming or delaying service expansion because Community Grants were often an important source of flexible funding.
Concerns with Proposed Changes
The current proposal to limit funding to capital projects only further undermines the program’s purpose and risks excluding the very organizations that deliver services directly to residents. Key concerns include:
● Most nonprofits do not own property, particularly frontline and grassroots organizations serving vulnerable populations.
● Limiting eligibility to capital projects systematically excludes these organizations, rather than supporting them to deliver programs and services where they are most needed.
● Such restrictions would narrow the reach of the program and reduce its impact at a time when demand for services continues to increase sharply.
● This approach also runs counter to the City’s stated commitments to equity, inclusion, and supporting community-based responses to poverty, homelessness, and wellbeing.
Supporting Program Improvement While Preserving Access
We agree that the Community Grants Program can be improved to better support the sector. However, improvements should focus on helping nonprofits become more sustainable, effective, and resilient, rather than emphasizing the creation of new programs or mandating “innovation” for its own sake. By their very nature, nonprofits are already innovative - they adapt constantly to meet community needs within constrained resources.
We suggest the program provide:
● Seed funding that nonprofits can leverage to attract additional support from other levels of government, foundations, or donors.
● Resources to grow and improve existing programs, rather than forcing new initiatives that may duplicate services or stretch organizations too thin.
● Capital funding where appropriate, while recognizing that limiting eligibility to property owners drastically reduces access for frontline, grassroots, and equity-serving organizations.
Improvements should strengthen the sector’s ability to deliver services, not narrow access or impose arbitrary restrictions.
Our Request
On behalf of London’s nonprofit sector, we respectfully urge the Committee to:
1. Maintain the Community Grants Program as a flexible funding tool that supports program delivery alongside limited operational and capital needs, recognizing that this flexibility is essential for frontline and grassroots organizations.
2. Pause implementation of the proposed capital-only funding model and engage in meaningful consultation with nonprofit organizations to fully assess its equity impacts, unintended consequences, and alignment with community needs.
3. Reconsider the capital-only approach in favour of grant criteria that ensure equitable access for organizations delivering essential services, particularly those that do not own property but are deeply embedded in the community.
4. Explore options to restore funding reduced in 2024, strengthening the City’s ability to respond to rising demand for services and supporting nonprofit sustainability, innovation, and long-term planning.
The Community Grants Program is a critical tool for building resilient, equitable, and well-served neighbourhoods in London. Ensuring it remains accessible, flexible, and responsive to community realities benefits not only the nonprofit sector, but all Londoners who rely on these services. Pillar Nonprofit Network welcomes the opportunity to work with City Council and City staff to ensure any changes strengthen - rather than weaken - London’s community infrastructure.
We appreciate the Committee’s consideration and welcome the opportunity to provide further input.