Armed Forces Covenant Fund Trust: Public Body Review summary 2025
Published 18 March 2026
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1. Armed Forces Covenant Fund Trust: background
The Armed Forces Covenant Fund Trust operates as a strategic grant‑making body, delivering targeted funding to support Armed Forces communities across the United Kingdom. The Trust was established by the Ministry of Defence in August 2015, replacing earlier funding schemes, including the Covenant Community Grant programme.
At its inception, the AFCFT was funded by the Ministry of Defence at £10 million per year to support projects and programmes delivered by organisations across the UK in partnership with the Armed Forces community. The MOD’s policy intent is for the Trust to be funded in perpetuity. The AFCFT is registered with the Charity Commission and publishes annual reports on its funding activity.
2. Review purpose
The review assessed whether the AFCFT remains:
- focused on a clear and relevant purpose and appropriately classified to operate effectively
- resilient, efficient, and aligned with MOD and wider government priorities
- well governed and properly accountable for the delivery of its functions
3. Conclusions and recommendations
The review examined all aspects of the AFCFT’s operating model to assess its continued appropriateness, effectiveness, and contribution to public value. It concluded that the AFCFT’s dual status as a non‑departmental public body and a registered charity provides important flexibility and strategic benefit.
The review found that retaining this status supports continued alignment with Defence priorities and the commitments of the Armed Forces Covenant.
The review also identified priority areas for improvement, including the need for clearer strategic direction from the MOD, strengthened governance and accountability arrangements, greater flexibility in financial planning, and improvements to commissioning and the development of joint impact metrics.