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Budget remains a key challenge for education, with Unions recently stating that 9/10 secondary schools and three quarters of primaries will not be able to afford their costs next year. This has forced over 95% of school leaders in England to generate income through other sources and last year saw an 8.6% increase in revenue generated in this way.
While traditional fundraising is still the go-to, more schools are now taking a structured approach—tapping into external funding, sponsorships, and community partnerships. But big challenges remain: awareness, capacity, and aligning income generation with long-term goals.
In our latest Thought Leaders Series, experts dived into how schools can bring in extra income while balancing risks, capacity, and strategy in our session on ‘Recovering revenue: Additional income generation for schools and trusts’.
Our hosts Jen Elliott (CEO), Andy Mackey (COO), and Rachel Kershaw (Director of Leadership & MAT Development) were joined by a panel of experts with a wealth of experience in income generation, strategic partnerships, and school development. Stephen Mussett (Strategic Lead for Sport and Leisure at Redcar and Cleveland Borough Council) specialises in securing major funding and managing large-scale sporting projects. Dan Wilson (CEO of Rotherham United Community Trust and Chair of Governors) has spent a decade helping organisations grow through bid writing, fundraising, and corporate partnerships. Mark Davis (Director of Blue Apple Education) supports trusts and schools in strategic marketing to boost pupil numbers and long-term financial sustainability. Finally, Ben Riggott (Trust Development Lead at Embark Federation) brings leadership experience from a trust of 21 schools, focusing on collaboration and sustainable growth.
The hesitancy around income generation
Whilst many schools are already successfully sourcing additional income from activities, Governors and Trustees don’t always have an appetite for risk, particularly for investments in capital fundraising and working with high-net-worth individuals, and can be hesitant to invest in the resources required.
The reality? There are many funding opportunities and sources of additional income out there—schools just need to know how to access it. As our CEO, Jen Elliott, put it: “There’s not a shortage of clubs and organisations with money to spend. People want to be seen supporting communities because of ESG agendas, but schools aren’t always tapping into these opportunities.”
Stephen Mussett emphasised the need for proactive management: “We actively want to work with trusts and schools, especially in sports and physical activity, but sometimes struggle to get through the door.” The same goes for arts and cultural projects, where funding exists but remains underutilised.
Despite the potential, a poll of attendees revealed that 30% of schools hadn’t applied for external grants, often due to lack of knowledge and capacity.
Rachel Kershaw addressed the perception that securing external funding is overwhelming: “It can feel like a lot of work to get this off the ground, but support is available—from financial planning to understanding how to make lettings work better.” Schools that see income generation as a strategic, long-term endeavour rather than a quick fix tend to get the best results.
Thinking ahead & working smarter
Income generation works best with a strategic approach. Dan Wilson explained: “Many funders have cyclic approaches, so planning ahead lets you tailor applications to fit their priorities.” Schools that rush last-minute applications risk missing out on valuable opportunities. Investing time in crafting strong narratives and forming strategic partnerships to bring more partners around the table boosts success rates.
Ben Riggott recommended a quick Google to search a variety of databases with dozens of different grants. He highlighted the need for a more systematic approach: “You’ll get regular updates about new grants that are out and available. Interestingly, we’re trying to get away from centralised access so more staff can contribute.” The more people involved in identifying and applying for grants, the better the chances of success through using collective experience and intelligence.
Dan also pointed out that “many funders now prefer consortium bids,” meaning schools that collaborate with others are more likely to strengthen their application. Rachel added: “You don’t have to be part of a large trust—partnering with local schools can enable you to access some of this funding.” Working together means less competition and more chances to win funding for shared initiatives.
AI, storytelling & the future of grant applications
AI is becoming a common tool in grant applications, but funders are catching on. Dan warned: “One funder told us they saw a 4000% increase in applications last year—many AI-generated. They now use software to filter out AI-written bids.” AI can help with structuring applications and getting some data. Still, the human element makes all the difference – referring to the unique context of your School, understanding the local context, and bringing the story to life to differentiate from the computer-generated applications.
Ben agreed that personalisation and authenticity set winning applications apart from generic, AI-generated ones.
Mark Davis highlighted the importance of branding and messaging, something that Blue Apple Education supports with: “A clear ethos and strong messaging make your bid stand out. Focus on impact and what matters most.” Schools that develop a clear funding strategy based on their unique strengths and needs are better positioned to secure long-term support.
The power of community and business partnerships
Building strong community ties can open new funding streams. Ben highlighted the impact of networking: “Our CEO immersed himself in local events, leading to sponsorships and funding opportunities we wouldn’t have otherwise accessed.” Schools have secured funding for everything from sponsorship of school award evenings to subsidising student trips to West End theatre experiences for disadvantaged pupils.
Despite their potential, business partnerships are completely overlooked as income sources, according to our live poll results. Jen found this surprising, “We’re working with a local school on a work experience scheme, but business partnerships in education don’t seem strong enough in the education sector.”
Ben reiterated the importance of partnerships and shared how attending industry events and networking with major companies has led to funding for student programs: “Those connections later funded trips, awards, and employability initiatives.” Schools that actively build business relationships don’t just gain financial support—they create career pathways and other long-term benefits for pupils.
Added to this, Rachel commented, “it’s about knowing what’s out there and the opportunities available. It’s really important to build a strong relationship with your Schools and your community.” Mark agreed, “from a trust and school point of view, it’s all about making sure you’re thinking strategically about what you do. It comes down to making sure you’ve got a handle on the strategic marketing because the way you’re attracting the community to hire out spaces can form part of an overarching strategy for communicating with the local community.”
Maximising school facilities & external support
Schools are sitting on valuable assets—especially their facilities. Stephen shared how a condemned Astroturf pitch turned into a quarter of a million pounds redevelopment project thanks to local authority collaboration resulting from a trust being proactive and having a good relationship with the LA. Other schools generate income by renting out spaces for parking on weekends, yoga classes, language courses, sports meetups, gaming groups, and even film shoots. One attendee also shared that beekeeping on their school site generates £1,000 a year, whilst another audience member confirmed that their halls are let out to the local community where parties over the Ramadan period are currently being held – evidence of some very clear, self-serving initiatives.
Local authorities and external agencies can also help secure funding. Stephen explained: “For large projects, councils can handle some of the heavy lifting. Many grants even cover professional fees, allowing schools to bring in consultants to develop community-driven proposals.”
Rachel pointed out that funding isn’t just about extra income—it can offset costs schools already bear. “Many schools run after-school or holiday clubs. Instead of dipping into their budgets, it’s about getting volunteers or people you know who can run those.” By thinking strategically, schools can fund key initiatives without stretching their resources.
Considerations to keep moving forward
This discussion clarified one thing: successful income generation in schools is about proactive engagement, strategic collaboration, maximising available resources, and being open to new opportunities. Invest time in planning, building relationships, and exploring income streams beyond traditional budgets.
As we plan future sessions in the Thought Leaders Series, we want to tackle the biggest challenges schools and trusts face. If you or a colleague have insights to share, want to join a panel, or have topic suggestions, get in touch—we’re committed to finding solutions together!
Did you know we can provide a Financial Health Check to help schools and trusts manage resources more effectively? Our expert team (including accredited SRMAs - there are only 150 in the country) can spot risks, savings, and efficiencies, giving you a fresh perspective. You'll get a clear report with tailored recommendations and support to put them into action. Talk to our Finance Team for more details.
