RESOURCE CENTRE MANUAL
HEALTHLINK WORLDWIDE
They may also include some initial start-up costs, such as the services of a
consultant to plan the resource centre, or the purchase of an initial stock of
materials.
It is sometimes useful to divide capital costs into large and small costs.
Identifying large costs – for example, specific equipment such as a photocopier
or computer – might be helpful in describing specific fundraising targets.
Recurrent costs are costs that need to be met regularly. They are sometimes
called running costs or operating costs. They are usually estimated on an
annual basis. Start by finding out the current cost. Then add a reasonable
amount for inflation to cover these costs in later years. It is useful to know
what the expected rate of inflation will be during the period you are budgeting
for.
The largest recurrent costs are usually salaries and resource materials. A typical
breakdown of recurrent costs might be:
salaries and benefits
60–70%
resource materials
20–30%
stationery/small items
5–7%
insurance
1%
Larger recurrent costs are likely to include:
• staff costs (including salaries, increments, promotions, social welfare
contributions, training and travel)
• building rental
• building maintenance
• electricity
• water rates
• telephone, fax, e-mail
• auditors’ and bank fees
• new additions to the collection (books, posters, videos, slides)
• annual subscriptions to periodicals
• computer hardware upgrades
• computer software upgrades including anti-virus protection.
Smaller recurrent costs may include:
• producing health learning materials, information packs and so on
• publicising the resource centre
• stationery
• postage
• computer supplies (paper, disks, printer ribbons/toner)
• small library equipment
• insurance
• miscellaneous items.
8 SECTION 2: MANAGEMENT AND FINANCE