Speaking at the Funding the Future conference in London today, Bubb said that there was little point in umbrella groups such as ACEVO or the National Council for Voluntary Organisations arguing with the government for full cost recovery if charities don’t know how much this is equates to.

“Charities need to analyse core costs,” he said. “You need to know what the gap in your funding is if you want to have a sustainable organisation.”

Bubb went on to challenge the voluntary sector to demonstrate its professional abilities, and to reject poor funding contracts.

“We accept bad contracts because our mission is about supporting beneficiaries and we’ll take whatever will help us do that. One of the reasons we achieve so much is because we take chances. But now a new arrangement is needed. The current arrangements are bad for everyone involved. They are bureaucratic, waste tax payers money and don’t achieve the outcomes wanted, with users getting a worse service or no service at all. Change could have real impact. Why are people not saying: 'this is a bad contract, we’re not putting up with it?'”

ACEVO used the event to relaunch its guide to full cost recovery, which has been revised to make it easier for smaller organisations to use. Produced in conjunction with New Philanthropy Capital, the research for the guide forms the basis of the Surer Funding Framework, due to be published on 30 November 2004. The Surer Funding Framework aims to secure the future of charities’ role in public service delivery and “ensure more efficient use of taxpayers’ money”.