New research exploring the volunteering experiences and perspectives of people from the global majority. Find out more
Although you’ll set out your costs in your financial tables, it’s useful to give a summary of your main costs and timescales for expenditure. Again, this helps show how your business will operate over the next few years. It can be helpful to think in terms of ‘fixed’ costs and ‘variable’ costs, to help plan your cash flow.
It’s important to show that your costs (what you spend on resources) match your activity – costs are likely to go up as your activity increases or as your sales volume goes up. You may need to employ more staff, move to bigger premises or buy more supplies. Items like insurance will be more expensive as you get more staff and more customers, so make sure this is reflected in your cost summary and your cash flow.
Make it clear whether you’ve secured the income (for example, a grant or contract that has already been agreed) or if it’s an income forecast (for example, sales of your new product or service).
If you’re heavily reliant on one source, describe any plans you have to diversify your income or what you’ll do if you lose that income source.
If you have, or are applying for, any loans or social investment, set out your plans for repayment.
If you’re trading products or services, use this section to describe your pricing strategy. There are several ways to set a price for your product or service.
Psychology is important: remember that expensive items are perceived to be more valuable by consumers, and many voluntary organisations underestimate the value of their work.
Viable trading activity needs to give a surplus between the price and the cost, and your costs may be higher than the competition’s. Make sure you have worked out how much it costs to deliver your product or service before you set your price.
Trusted Standard helps charities and voluntary organisations improve the quality of their work, and communicate that quality through accreditation
Get involved in these key events for the voluntary sector in 2023
Guidance to help your board learn about the rules on automatic disqualification, who this applies to and applying for waivers.
Learn how to develop your organisation's strategy and how to use the evaluation process to learn and make decisions
How to use and learn from your evaluation findings
Get regular updates on NCVO's help, support and services