When should charities expect and negotiate for full cost recovery?
The short answer Charities should expect and negotiate for full cost recovery in any case where a public authority is purchasing a service from them, unless the charity decides it is in its beneficiaries’ interests to forego full cost recovery. In more detail Different types of funding agreements: The terminology used to describe funding agreements can be very confusing and imprecise. There are important differences between the different types of funding agreement. These differences are legally complex, but for the purposes of this guidance: • A grant is a gift or donation. The donor has no right to receive anything in return, but may attach terms and conditions specifying how the grant is to be spent, which could make it a restricted fund within the charity’s accounts. Spending the grant on anything else would be a breach of trust. Any surplus funds will be subject to the same restrictions unless the terms of the grant stipulate otherwise. • A contract is a legally enforceable agreeme
