Finance issues

This section provides information on loan finance and full cost recovery.

Loan finance

Charity Bank

Charity Bank has the ability to offer financial support to organisations with a charitable cause, providing unsecured working capital loans as well as long-term secured asset or investment funding.

See website: www.charitybank.org/

CAF Venturesome

CAF Venturesome provides loans to charities, social enterprises and community groups when grants may not be available and access to traditional financial institutions is difficult.

See website:www.cafonline.org/charity-finance--fundraising/banking-and-investments/loans-and-capital.aspx?

Loans and Equity Finance - Introductory overview

See website www.financehub.org.uk/loans_and_equityfinance/loans_and_equity_finance/introduction.aspa

Working with finance: key issues for social enterprises - Introductory overview

See website http://www.financehub.org.uk/loans_and_equityfinance/working_with_finance/default.aspa

Tools for Loans and Other forms of Finance

Document produced for the Finance Hub by NCVO Sustainable Funding Project, it provides a series of exercises and checklists designed to support advisers working with groups on procurement and contracting. It includes materials designed for those just starting to look at contracting (introductory), those ready to explore the topic further (intermediate), and for those wanting to look at contracting more seriously (advanced).

www.financehub.org.uk/uploads/documents/fh_tools_for_loans_and_other_forms_of_finance_May07_50.pdf

What is full cost recovery?

Full cost recovery is the principle of paying for the direct and indirect or overhead costs associated with delivering a service. Below are documents which relate to full cost recovery.

National Audit Office - Implementation of full cost recovery

This review examines the progress government has made towards marketing its commitments to implement full cost recovery across its contacts with third sector providers, including charities, voluntary and community organizations, and social enterprises.

It recommends that the Office of the Third Sector and HM Treasury should expand on their commitment to the implementation of full cost recovery.

Download document from http://tinyurl.com/yzzebn3 (URL shortened using TinyURL)

Full cost recovery - WYCAS

A brief step-by-step guide as to how to apply the principles of full cost recovery to your organisation, developed by West Yorkshire Community Accountancy Service. This is a costing exercise for you to see what your services cost, in full. Whether anyone will fund your services in full is of course another matter! Nevertheless it will give you a clear target to aim for.

Download document from www.fit4funding.org.uk/help_and_advice/preparation/full_cost_recovery/

Commissioning