Glossary

The amount of money left in a charity’s bank account at the end of a year (after income and expenditure have been accounted for). In a company structure this would be described as ‘profit’, but it’s more like a ‘savings account’ or a financial buffer, to be used in the event of unpredictable income caused…

Costs to your charity which do not directly relate to the charitable work you’re undertaking (but would be unable to operate without

Items which can be attributed to a specific, time bound activity and which have their own outputs and outcomes.   These can be capital, revenue, overheads or a mix of all three.

Costs which for the most part are recurring and ongoing and do not relate to specific items or objects, e.g. labour (salaries / contractors / facilitators), venue / equipment hire, volunteer expenses etc. Revenue costs relate directly to charitable activities and are slightly different to overheads.

Material objects, specific items, often a one off or occasional purchase e.g. building materials, furniture, vehicles, equipment etc Capital items of significant value (e.g. buildings) will be listed in a charity’s accounts as assets.  Many will depreciate in value and will therefore need to be replaced.

Costs needed to run core services

Activities which form the day to day operations of your charity.   They happen sufficiently regularly to necessitate inclusion in your annual budgeting process and are usually the last things to be cut in the event of a funding shortfall.

“The way in which an organisation is organised, managed, governed and the practices which are undertaken to ensure that standards are met in accordance with the relevant compliance”. Charities are required to follow governance practices as set out by the Charity Commission.  Fundraising practice is set out in a code of practice owned by the Fundraising…