21st Century Skills for Non-Profit Managers by Don Macdonald

Author:Don Macdonald
Language: eng
Format: epub
Tags: Personal & Professional Development
ISBN: 9781947098190
Publisher: Business Expert Press

Costs

Costs and income must be tightly calculated as part of the tender, with accurate forecasts for the years of the contract; there is no point gaining a contract on which your organization loses money to deliver. In addition taking over existing contracts invariably involves taking on some or all of existing staff teams which can be onerous. One enormous issue is taking on staff pension responsibilities; this issue is one reason why contracting-out services to social enterprises has moved so slowly in the UK National Health Service.

Case Study

A small UK charity in inner city London for vulnerable people, ran a night shelter and day center, with an existing kitchen for these services. It then decided to start a social enterprise running a meals delivery service for housebound elders and other vulnerable people on a contract with the local council. This was worth £300,000 per annum, a figure which had been sharply reduced from the previous privately run contract. There was an ongoing tension between managing costs and maintaining standards: food quality and transport to name two elements. The manager reckoned the charity had to spend 30 percent more than they received to provide what they considered a satisfactory service for the 100 vulnerable clients. In fact this became so costly that the charity had to give this contract up, even though it still maintains a more economical catering service for its center users. Subsequently they have obtained other more manageable contracts from the health service.

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