Share

Costs of public service delivery creep up

Costs of public service delivery creep up
News

Costs of public service delivery creep up

Finance | Ian Allsop | 23 Apr 2008

Charities are falling increasingly behind in achieving full cost recovery on public service delivery, according to new research from the Charity Finance Directors’ Group (CFDG).

The worst-performing quarter of respondents to CFDG and Agenda Consulting’s annual benchmarking study, Finance Count 2008, are making a loss of 8.8 per cent or more in their income on public service delivery activities, compared with a 3.3 per cent loss last year.
 
More encouragingly, a quarter made a surplus of at least 1.6 per cent of income. And the percentage of contracts that were fully-funded crept up, with an average of 71 per cent fully-funded this year compared to 67 per cent last year.

But only 44 per cent of respondents believed their budget-holders were fully aware of central costs, and the study recommended raising awareness of full cost issues across organisations. 

Room for improvement on gift aid

Gift aid recovery levels appeared fairly low, with charities claiming an average of less than 60 per cent of the gift aid available to them.

The study suggested there was significant scope for increasing the amount of available income claimed, as some respondents reported recovery levels of almost 100 per cent.

“Increasing the percentage recovered will become ever more important for charities in the coming years if they wish to maintain current levels of gift aid income,” said CFDG. 
 
Overall, the study concluded that “finance directors are clearly not complacent”. It identified internal reporting as by far the most common priority for future development, followed by financial planning and budgeting.

“Finance directors’ most frequently mentioned issues included efficiency and competitiveness, full cost recovery, staffing issues, and future income sources.”

Finance Count 2008 involved benchmarking the performance of 237 medium and large voluntary and community organisations from across the UK, representing almost 18 per cent of the voluntary sector workforce, and combined total net assets of over £5.2bn.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Action for Children plans to boost investment in fundraising

23 Sep 2014

Action for Children is planning to boost its investment in fundraising in a bid to offset the vagaries...

Too many charities 'moan and whinge', says Scope CEO

23 Sep 2014

Most charities would prefer to “moan and whinge about how hard life is” rather than innovate to drive...

Kids Company could close without more government funding

22 Sep 2014

The chief executive of the children’s charity Kids Company has said that it is at risk of closure unless...

UK Community Foundations wants government to discourage new private trusts

23 Sep 2014

Umbrella body UK Community Foundations has recommended tougher restrictions on private trusts in order...

National Children’s Bureau sells publishing arm to commercial publisher

23 Sep 2014

National Children's Bureau has sold its book publishing arm to commercial publisher Jessica Kingsley Publishers...

Kids Company could close without more government funding

22 Sep 2014

The chief executive of the children’s charity Kids Company has said that it is at risk of closure unless...

JustGiving page for Manchester Dogs’ Home receives four donations a second

15 Sep 2014

JustGiving has said that donations going to an appeal for the Manchester Dogs’ Home following an arson...

Commission's new online charity search to launch soon after delay

15 Sep 2014

The Charity Commission’s searchable online register of charities is due to launch in beta this autumn,...

Charities warned that digital campaigns can be 'counterproductive'

9 Sep 2014

Charity digital campaigns can be counterproductive and will need to change to keep the attention of those...

Join the discussion

 Twitter button

@CSFinance