Fair Market Value for Charities in Partnership Work
Charities face increasing demands from all sectors to support patient and public involvement
(PPI) and to work in partnerships. Partnership work uses funds and resources. Charities must
manage these costs to ensure financial sustainability.
This guidance, created by a coalition of health charities, including Health Research Charities Ireland and UK-based organisations Cancer 52, the Patient Information Forum (PIF), the Charities Research Involvement Group, and the National Rheumatoid Arthritis Society, is designed to help charities and partners calculate Fair Market Value (FMV) when charities decide to work in partnership and to charge for these activities.
Charities have huge value as partners. It is critical this value is understood and recognised in the process of setting FMV. Our aim is to support the independence of charities and increase transparency about payment. For charities partnership work to continue and grow, there must be fair and transparent payment which contributes to the sustainability of the sector.
We urge all partners to implement our recommendations on Fair Market Value.
Recommendations
1. Full cost-recovery to support charity sustainability
Charities need to recover the full cost of their activity including staff costs and central overheads to ensure the sustainability of organisations.
2. Minimum entry point of £100/€120 per hour for the work of charities
Patient Focused Medicines Development (PFMD) has developed an FMV calculator for people with lived experience. This rate is a minimum entry fee to be paid to a charity working in partnership.
3. Equity of payment with healthcare professionals where this is higher than the PFMD rate
The staff of health charities sit alongside healthcare professionals on steering groups and conference platforms. Recognition of this expertise should mean there is equitable payment.
4. Market value add-on costs
When setting FMV the intangible ‘brand’ benefits of partnering with charities should be taken into account.
5. Fair contracting
FMV rates should be agreed at the outset. Contracts should be transparent and simplified.
Payment terms should be 30 days.