Funding and financial planning

Funding

Community transport services need funding to cover both start-up and running costs. Passenger fares rarely cover everything, so it’s important to plan for other sources of income.

Start by preparing a detailed budget. Include one-off costs like buying or leasing a vehicle, insurance, training and publicity. Then set out your ongoing costs, such as fuel, maintenance, driver expenses and admin. Look at similar schemes to guide your estimates and set fares that are affordable but realistic.

You may be able to apply for funding from:

  • Hampshire County Council, through the Bus Service Improvement Plan (BSIP+), for services that support the wider public transport network
  • district and borough councils, some of which offer small community grants
  • local voluntary organisations, such as your Council for Voluntary Service
  • charitable trusts, including the National Lottery Community Fund, Motability, Masonic Charitable Foundation (please see Community Transport Association for more details)

You can also raise money locally through events, donations, sponsorship and crowdfunding platforms. Local business may help with sponsorships, (however section 19 permit holders need to be careful that sponsors are not incidentally profiting from the service). This can help meet match funding requirements, which are often part of grant conditions.

Some grants expect you to raise part of the cost yourself. Planning for this early can strengthen your application.

Think ahead to how the service will continue once initial funding ends. Consider:

  • growing passenger numbers
  • reducing operating costs
  • securing long-term local support
  • building partnerships with other organisations

Sustainable planning helps ensure your service remains viable and responsive to community needs.

Cost recovery with Bus Service Operators Grant (BSOG)- Go electric, go further

If your community transport scheme operates a registered minibus service, you may be eligible to reclaim fuel or energy costs through the BSOG.

Electric vehicles benefit from enhanced BSOG rates, offering lower running costs and reduced emissions. Fuel vehicles (petrol and diesel) are also supported under the scheme.

For full guidance and eligibility criteria, visit the Department for Transport’s BSOG page.

Financial monitoring

Keeping track of finances helps you plan ahead and supports decisions about fares, fundraising, and grant applications. 

Appoint a treasurer to monitor finances and report to the committee, use simple accounting tools or spreadsheets to track income and expenditure, and review finances regularly to avoid instability that could affect users and volunteers