National newscaster Charity Digital has produced guidance to help charities apply for full cost recovery when applying for funding grants.
Full cost recovery
(FCR) allows charities and similar organisations to secure funding that covers all the costs involved in running a project, meaning you should be able to ask for funding which covers a suitable share of your organisation’s overheads as well as funding for direct project costs.
A project is often a specific and unique piece of work that a charity wants to be funded for, especially if the subject of the funding is specific to a given client base or regional concern.
Direct project costs are the expenses that relate clearly and directly to a project, such as wages for project workers, expenses for volunteers or dedicated equipment for the project itself.
Overheads are costs that partly support the project, but it can also support other products or services that a charity offers. These could be things like a portion of salaries for core staff, moneys for rent or utilities costs, even an organisation’s legal and auditing fees.
But how does a charity apply for full cost recovery?
Charity Digital looks to explore this. From Reviewing your entire Cost Base
to Cost Allocation
, they have produced a guide designed to help a charity apply for full cost recovery when applying for funding grants.
To read their guide
, visit the Charity Digital website