Charity manager or trustees normally become frightened with the word “outsourcing” though they don’t realise that everyday this is being already done in their charities.  While working with many charities/NGOs, I noticed that the sense of “loss of control” seems the main issue while considering the outsourcing. It is the physical distance from the charity to outsourcer office that create the “loss of control” feeling. We managed to demystify the myth with one charity, we are currently working with. the charity in question is a classic small charity scenario e.g around £ 4ook annual income mainly from grants and have 2 full-time and 2 part timer. Before outsourcing their accounting and related back office function to us they employed a part-time accountant/ book-keeper who was available part-time as per the employment contract.  Since outsourcing, the charity realise that they can contact us anytime over the phone or email and they are enjoying this advantage. Just being available when they needed has made them an outsourcing fan.

While cost is an obvious factor in outsourcing decision but we always emphasis that charities should not only think about cost reduction. In the above case on top of at least 40% cost savings, the charity is enjoying access to diverse skills (e.g book-keeper, accountant, finance director level etc) and anytime access.

The most important aspects of the outsourcing is that charity should build a partnership with the outsourcer not just another cost saving supplier.  Obviously, charities know the value of partnership better than anyone.

If you are considering to outsource charity accounting and related back office function, you might like to contact Charity Accounting Services, specialised with smaller charity/ NGOs.

Wish you all the best.

Golam Morshed

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