Community Network, a national charity and company limited by guarantee, provides telephone conference call services to the third sector. It has 15 staff, of whom eight are full time, plus five trustees, and an income of nearly £500,000. It is based in rented accommodation in London, The service is available Monday to Sunday 8.30am – 10.30pm with PIN access outside these hours.

The Network has more than 800 regular users – organisations that range from large household name charities to small self-help and support groups. Approximately 50,000 individuals used the service last year. Currently Community Network receives core funding from the Active Community Unit, Big Lottery Fund and Lloyds TSB Foundation, and project funding from the Department of Health. It also generates 46-50% of its income from conference sales.

In 2003 Essex County Council invited the Network to tender to provide conference call based support for carers across the county. Community Network recognised a potential new, and replicable, income generating opportunity, and used the template to ensure an accurately costed and priced bid. Although at first glance the full cost recovery process didn’t seem appropriate to its size or structure, it encouraged examination of the Network’s existing methods and a more rigorous approach to cost allocation.

Community Network was successful with its bid and when it undertook an internal project review six months later the figures still stood up. Since then, using the same template, it has been awarded contracts for a further two years. Initially it took considerable time and effort on behalf of the Chief Executive and Head of Finance – but building full cost recovery into its operational processes, including a review of its existing reserves policy, allowed the Network to take a more robust stance with both funders and clients by clearly demonstrating actual service costs.