The financial viability of charities involved in early years services has been put in jeopardy by a system based
on under-funded contracts. Mary Evans investigates
Some charities operating across the early years sector are effectively subsidising the Government, which is unfair, unlawful and immoral, according to Steve Alexander, chief executive of the Pre-school Learning Alliance.
His comments come in response to a survey which says that charities are putting their financial viability and independence at risk through their growing reliance on under-funded contracts to provide public services.
Only one in eight charities delivering public services is obtaining full-cost recovery in all cases, while just one in four feels free to make decisions without pressure to conform to the wishes of funders, according to the survey, Stand and Deliver: The future for charities providing public services.
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