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Supporting Scotland's vibrant voluntary sector

Scottish Council for Voluntary Organisations

The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Mansfield Traquair Centre, 15 Mansfield Place, Edinburgh EH3 6BB.

Funding Glossary

Funding termExplanation
Capital costs Costs relating to buying equipment, buildings, vehicles or other physical items.
Core costs Non-project specific costs required to keep a charity going including salaries, utilities or rent. These may also be referred to as overheads.
Designated funds Funds set aside for a future purpose. For example to cover the cost of replacing a piece of equipment or for redundancy costs should the organisation close.
Full cost recovery Securing funding for all the costs involved in running a project. This includes direct project costs and a proportionate share of your organisation’s core costs and overheads.
Gift Aid A government scheme that allows registered charities to reclaim tax on a donation made by a UK taxpayer who agrees to this. Charities can claim an extra 25p for every £1 donated at no extra cost to the donor.
Overheads Costs that are not related to a specific project, but are necessary for the organisation to operate, for example admin costs that relate to the whole organisation. These may also be referred to as core costs.
Project costs Costs that are directly related to the delivery or projects or activities.
Reserves Funds that have been put aside for future plans or to mitigate against future uncertainties.
Restricted funds Money that can only be used for a specific purpose. Typically this is in the form of grant funding and the purposes are set out in your grant award letter.
Revenue costs Costs incurred in the running of your organisation and its activities. It can include project costs as well as overheads.
Unrestricted funds Money that can be used for any purpose that the organisation needs to achieve its aims.

Last modified on 12 October 2022
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