Make sure you cost your project out to meet all the needs of the project and the organisation.

1. Costing your project
Make sure you cover all the costs required
for your proposed project.
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2. Introduction
 There is a difference in Core Costs and Project
Costs.
 When funding, you need to look at the core cost
of the project, not the overheads of the
organisation.
 Full cost recovery was recognised by the treasury
in 2002.
 You need to calculate the real cost of each project
and this presentation will help you do that.
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3. Direct Costs
 You need to divide the costs into categories
 Some costs will be directly attributed to the
product or service. This is the direct costs
 Materials, travel incurred for the project are
classed as direct costs
 Deducting the directs costs from the income for a
service will give you its contribution.
 These costs should be put against your
overheads.
 Surplus is then considered gross profit.
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4. Fixed Costs
 Things such as rent, insurance, accounting etc
are considered fixed costs as they do not change
over a short period of time
 These are sometimes considered core costs by
voluntary groups
 However they are not the core costs of the project
or service, they are overheads for the
organisation
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5. Surplus
 It is often thought that the voluntary sector cannot
make profit.
 However making a profit that will go back into the
organisation is allowed and creates more
sustainability
 Surplus is required to purchase capital equipment
and maybe to provide working capital.
 This will help you build a reserve for your
organisation
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6. Staff Costs
 It is important to know how many hours a staff
member will be working on the project.
 If the staff member works solely on the project,
this is easy to calculate
 If the staff member is working on a number of
projects, then you need to know how much is
spent on this particular project
 Staff will need time for training, sickness etc.
 Make sure you calculate how much time other
staff in the organisation may spend on the project
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7. Project Costs
 This is the direct costs + its share of the staff
costs + its share of the overhead costs.
 If you get this right and you raise the funds
needed then you will break even
 You may even make a surplus through the cost of
products of services
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8. Planning
 This should be part of your planning process for
funding
 Use a spreadsheet or a pre planning process
 The planning will also give you a breakdown of
your project/s and you can produce management
accounts
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9. Further Information
 For further information on funding, please go to
http://www.get-funding-ideas.com