LONDON, December 4, 2012 /PRNewswire/ --
This month, the Charities Aid Foundation reported: "Fewer people
are giving to charity and those that do are giving less, resulting
in a £2.3bn real terms fall in total donations in the last year.
Charities with incomes of less than £1m reported total combined
deficits of £306m in 2011, compared with an overall surplus of
£325m in the 2007 financial year."
In 2010, Accountants Baker Tilly spoke about 'managing charity
finances through uncertain times' and reducing costs. "A charity
needs to assess whether its staff have the correct level of skills
to carry out its activities. So whilst it is good news that
charities are reviewing their cost base, the bad news is that 10%
are making staff salary cuts and nearly a third are deferring
projects."
Chris Allison, Managing Director
of Auditel, the UK's leading independent Cost Management
specialist, says: "At this difficult time, charities, like every
other type of organisation, are looking to reduce their operating
costs. But, in our experience, it is possible to retain valued
personnel rather than having to rehire when things improve.
Therefore, to accomplish this, charities need to take a really hard
look at their business costs.
"However, we find it rare for a charity to have a full-time cost
management specialist on their books. It's a luxury that few can
afford. The responsibility usually passes to other members of
staff, many of whom do not possess the relevant experience and have
more than enough duties already!"
Allison adds that as a result, some opt for what appears on
paper to be the 'cheapest' suppliers. Adopting this purely headline
cost-based model may seem logical, but it fails to take into
account a wide variety of additional factors contributing to the
overall situation. Thus, many organisations are spending far more
than they need.
A cost effective solution
Many charities are turning to outsourced independent providers
of cost management services. By so doing, they can access
specialist insider knowledge and eliminate the financial loss of
taking key individuals away from their core responsibilities. This
takes advantage of a thorough methodical analysis of their
expenditure without the cost of employing in-house specialists.
Allison again: "Our Total Cost of Purchase Model® is not about
cost savings, although that's important. It's about a holistic and
ethical method of securing essential business services that not
only look at price, but at every aspect of the procurement
lifecycle. Employing this model, a highly-skilled Auditel
specialist enables charities to lower their business costs year-in
and year-out".
Here are examples of Auditel's many success stories:
Target Housing is a South
Yorkshire based charity which has been providing
accommodation and support to homeless and vulnerable people for
over 21 years.
Savings on Mobile Telecoms 65%; Fixed-Line Telecoms 65%; Gas
37%; Electricity 31%
Total savings to date over
£70,000.
The Peepul Centre is a unique and inspirational social
enterprise, providing a multi-purpose venue for the local
community.
Savings on Gas, Electricity, Contract Cleaning, Washroom
Services and Fire and Security Systems
Total savings to date: £77,477
Ongoing additional projects: Catering and Stationery
Costs.
Papworth Trust is a charity and registered social landlord,
based in Cambridgeshire, working
with people with disabilities across the East of England and London.
Savings on Electricity - £139,640; Gas - £49,063
Total savings to date: £188,703
(25%)
The Deputy Chief Executive of Target Housing reported:
"Auditel's savings mean that our operating expenses are lower and
that we can redistribute the money to subsidise other areas and
improve our services. It would have been impossible for us to
achieve these results.
"Auditel has become an outsourced member of our management team.
They are a breath of fresh air. You always know where you are with
them. They do what they say they are going to do and are completely
honest. I wouldn't hesitate to recommend them to other businesses."
About Auditel
Established in 1994, Auditel is currently reducing financial
waste and improving bottom line profits for thousands of
organisations throughout the UK and Ireland across all areas of business
expenditure. Their clients range from small businesses to global
brands such as Pizza Express, YMCA and Oxford University. Auditel's
flexible fee structure gives clients' choice and the ability to
manage cost and strategy for the long term.
More information: Norman Grossman, PR Officer, Auditel
(UK) Ltd, St Paul's Gate, Cross
Street, Winchester, SO23 8SZ. T: +44(0)7966-436717.
E: norman.grossman@auditel.co.uk