Voluntary and community organisations are increasingly providing services under contract in the community, whether it is caring for the elderly or running playgroups for children. These offer third sector organisations a valuable new source of revenue, but also pose risks.
One of the main dangers is that a failure to recover the full cost of delivering a service - including a share of the overheads - will leave the organisation facing a constant scramble for funding. By taking extra time and effort in the beginning to follow the principals of Full Cost Recovery (FCR), these risks can be minimised.
This overview sets out the importance of FCR to the survival to an organisation.
