From Civil Society
More charities are now using their own resources to subsidise public service contracts than at any point in the past five years, according to the Charity Finance Group’s latest research into full cost recovery.
Charity Finance Group (CFG) reported that the sector’s overall median deficit is now 0.5 per cent when delivering public service contracts, compared to breaking even in 2016.
This is despite core costs remaining similar to previous years, between 12 and 14 per cent of income generated through contracts.
But CFG found that the largest charities in its sample, with an income of £50m or more, are making less of a deficit that two years ago, 9 per cent instead of 11 per cent.
However, the sample for this band is only seven charities and the overall picture for the 72 organisations of all sizes that responded this year is the worst since CFG first collected data in 2013.