This research, commissioned by Charity Business (providers of outsourced services to the charity sector) in the summer of 2008, looks at the potential use of outsourcing in the voluntary sector, particularly in light of the current economic climate.

Mark Freeman, CEO of Charity Business, says, "With our clients realising an average saving of 40% on their back office costs, these figures could mean a total of £136 million extra for charitable activities."

The research found that several functions are already routinely outsourced by the sector, including training, financial advice, annual accounts preparation and IT, particularly amongst charities with incomes between £1-5 million.

Whilst 76% of those surveyed thought outsourcing might have an important role for charities in the current financial climate, there was some apprehension about the risks involved. Identifying suitable providers, impact on the charity's reputation, relationships between external and internal staff, were amongst the risks put forward.

The advantages of outsourcing, such as gaining additional expertise, freeing up resources to focus on their mission for example, were acknowledged. A key finding however was that many charities have simply not considered outsourcing, perhaps due to the limited amount of information available on the subject.

To address the significant gap in information, a number of suggestions are put forward, including the development of clear and accessible information on what is available, and promoting access to information amongst infrastructure and membership bodies.

Click below for a full summary of the report. A copy of the full report and results can be obtained from Charity Business by calling 01793 554204 or by emailing marketing@charitybusiness.com.