FINANCE NEWS: Community Fund to review core costs policy after Acevo report

MATHEW LITTLE

The Community Fund could broaden its new policy on funding core costs in the light of the findings of the Acevo core-costs project due in November.

The fund last week announced long-awaited concessions on its policy on funding some of the costs charities incur as a result of projects that it supports.

But Third Sector has learned that the fund plans to review its policy when Acevo publishes its guidelines on calculating core costs in November.

According to Ranila Ravi, Acevo's head of communications, this could lead to a further broadening of the Community Fund's core-costs policy.

"The move to funding part of project costs is a first step,

she said.

"But hopefully when they review the policy they will be more open to all types of core-cost funding."

Acevo, in conjunction with charity New Philanthropy Capital and business consultants KPMG, is developing a guide to the calculation of core costs for funding applications. The guide will provide a method by which different kinds of charity can allocate core costs. It is hoped funders will also accept the formulae.

The Community Fund's policy on core costs is a result of extensive consultation with the sector over its new five-year strategic plan.

The fund will now pay for part of the salaries of staff directly supervising employees who are funded as part of a project. But it will not cover the salary costs of senior staff such as finance directors or chief executives, even if they spend part of their time working on a project.

The fund will also pay a share of accommodation, utility and insurance costs specifically for the project it is funding.

Community Fund England director Richard Gutch said: "These changes will be very popular with many of the organisations we fund. In drawing up these new rules we have responded to some of the key issues that have concerned the sector for some time."

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