Calculating the Cost of Service Delivery

Introduction

Do you know the true cost of delivering your programmes and services? When negotiating contract amounts with funders, having an accurate breakdown of your expenses is crucial for ensuring your organisation’s financial sustainability.

This practical resource provides a clear, three-step framework to help your organisation break down financial data into direct and indirect costs. It guides you through determining specific programme expenses (such as venue hire, wages, and travel) versus organisational overheads (such as admin labour, rent, and insurance).

Inside the quick guide, you will find easy-to-follow calculation examples demonstrating how to allocate indirect overhead percentages, figure out the total cost per individual session, and determine the true cost per client. It also offers essential tips on using these calculations to successfully negotiate multi-year funding agreements and manage inflation adjustments.