The International Federation does not make any profit from its logistics or procurement services, but it must maintain financial stability. Services agreements were first piloted with a small number of National Societies in order to provide a cost recovery model for the International Federation. National Societies sign service agreements, which specify the fees per service bases on the total value of the order.
In order to set the level of service fees, we carried out an historical analysis of income and expenditure. We revise the fees on a yearly basis in order to adjust any discrepancies and we continuously review this cost recovery model.
How much is the service fee?
The service fee is incorporated into the cost estimate. For services provided to National Societies through service agreements, the service fee is pre-determined for each type of service. The service fee ranges from 1.5 per cent to 4.5 per cent depending on the total value of the order.
For full details of all the fees that may be applicable, please see service fees.
You can download a standard National Society service agreement.
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