Costingyourproject

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

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Costingyourproject

  1. 1. Costing your project Make sure you cover all the costs required for your proposed project.www.get-funding-ideas.com
  2. 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.www.get-funding-ideas.com
  3. 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.www.get-funding-ideas.com
  4. 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 organisationwww.get-funding-ideas.com
  5. 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 organisationwww.get-funding-ideas.com
  6. 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 projectwww.get-funding-ideas.com
  7. 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 serviceswww.get-funding-ideas.com
  8. 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 accountswww.get-funding-ideas.com
  9. 9. Further Information For further information on funding, please go tohttp://www.get-funding-ideas.com

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