Full Cost Recovery. As a business-term, it sounds like something from a Czechoslovakian foundry circa 1973. But it is actually the pricing system for services from the UK third sector.
Full Cost Recovery. Think about that term and what it says. In effect, the message is "You owe it to me to pay the full cost I incurred in producing this service". No more, no less. Not what you want to pay or I am willing to accept. Just the "full costs", full-stop.
This does nobody a service. For providers it eliminates the prospect of profit. Which in turn means you can't build the business. For customers it means you have to pay the costs of production, whatever these happen to be.
So why are we in thrall to this idea? Shouldn't we really be thinking not about how we recover our costs but how we push down our costs so that providers actually want to use our services. I don' buy moral status of the costs of charities. Like all organisations, the cost of charities are subject to drift. To even imply someone else has a duty to meet them is ridiculous.
So let's hear less of Full Cost Recovery and more about how we drive down costs, create profits and grow our impact as a result. Full Stop.