Value-for-money and the small charity

IMPACT

Charities have struggled financially in recent times, and are predicted to continue do so for the foreseeable future. In particular, small charities have fewer resources to support financial sustainability. The authors explored the importance of value-for-money (VFM) in small charities, and how it was defined and assessed. This article highlights the importance of VFM to small charities and suggests strategies for managing money more effectively and efficiently to achieve charitable objectives.

ABSTRACT

This article opens a new research pathway by examining value-for-money (VFM) in the charity sector. There is an initial exploration of literature regarding the definitions of VFM and how it is assessed. Research findings highlight that small charities are aware of VFM but do not explicitly operationalize it and have difficulty in assessing it. The authors present original insights into the challenges faced by small charities in defining and assessing VFM and call for the development of an appropriate VFM framework for small charities.

KEYWORDS:

• Beneficiary needs
• charitable resources
• long-term outcomes
• small charities
• value-for-money

Acknowledgements

This study was funded by the British Finance and Accounting Association (BAFA) through its Seedcorn Research Funding scheme.