Research commissioned by the Community Fund has found that most charities funded by the body continue to operate after their three-year grants expire.
The research, carried out by consultancy Martin Price Associates, discovered that 75 per cent of projects that intended to continue are still operating at more or less the same level of activity. Most secured funding from the fund or from charitable trusts.
The research comes as the fund tries to press home the importance of exit strategies so projects can have lasting impacts. Community Fund chair Diana Brittan said: "We must ensure that projects have a long-lasting impact on the lives of disadvantaged people."
The fund is to strengthen its approach to ensure that community groups have the right project-planning skills from the outset.
Martin Price said: "Successful grant-holders realised the importance of business planning as a management tool rather than just as a way of getting money."