Poor management and planning hamper full cost recovery

Voluntary organisations don't implement full cost recovery because they lack of proper staff management and governance planning, according to the NCVO.

Research by the umbrella body’s UK Workforce and Governance Hubs has shown that while 43 per cent of the sector’s expenditure is on staff, two thirds of voluntary and community groups do not have a dedicated human resources manager.

In addition, half the organisations surveyed by the NCVO did not have a budget for governance costs. In a statement, the NCVO said that charities often found themselves out of pocket or unable to train or support their employees or trustees adequately because they did not take development costs into consideration when planning and fundraising.

“Our research shows that organisations just do not realise the importance of developing their workforce,” said Janet Fleming, Head of the UK Workforce Hub. “We are appealing to voluntary and community organisations to be aware of the benefits of better planning and costing of their workforce to further the sustainability of their organisation.”

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