An NFP organisation approached us with concerns about an increasing deficit despite stable funding.

Challenge:

The organisation did not have systems in place to track funding against the resources utilised, resulting in limited visibility over cost drivers and service performance.

Our approach:

We guided the organisation in implementing activity-based costing. This included supporting the finance team in understanding the concept, identifying relevant costs, and establishing an effective hourly rate for service delivery.

This enabled more accurate service pricing and improved visibility of productivity across different service segments.

Outcome:

The organisation achieved a significant improvement in productivity, discontinued or repurposed underperforming segments, and improved its overall financial position, resulting in an increased surplus.