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What is Full Cost Recovery?
Full Cost Recovery means securing funding for all of your organisation costs associated with a project, including direct costs of your project and the overheads. It is a way to make your organisation more sustainable as it means that all the costs of running a project will be covered by the funder.
Full cost recovery is becoming more common so make sure you know whether the funder you are applying to will allow you to use this method.
How to work out Full Cost Recovery
There are normally 2 types of cost associated with delivering a project:
Start by making a list of all of your costs involved in your project
Think about all the costs associated with starting up, running the project and closing it down at the end.
Typical start up costs could include:
Typical running costs could include:
Typical closing down costs could include:
Identify your overheads
This could include: salaries of core staff (e.g. managers, admin assistants), rent of your premises, administrative support costs. Don’t forget to allow for VAT and inflation if necessary.
Full Cost Recovery should now allow you to allocate a proportion of your overheads to a particular project. You should share your overheads between different projects.
There are a number of ways which you can allocate your overheads including:
When working out your Full Cost Recovery you should always check that your estimation seems fair and reasonable, and are enough to cover only what you will need. Funders may ask you to explain how you worked out the costs so make sure you can answer their questions. Remember Full Cost Recovery is about getting your costs covered, not making a profit!
ACEVO Full Cost Recovery http://www.fullcostrecovery.org.uk/main/
Big Lottery Fund http://www.biglotteryfund.org.uk/full_cost_recovery
Information from Mid and North Beds CVS and Big Lottery Fund ‘Applying for your project overheads’ booklet