Neill Summerfield, a charity expense reduction analyst, recently helped the Royal Academy of Dance save over £1m in costs. He gives his top ten tips on how other charities can reduce their own expenditure.

Tip 1: Have a thorough review – Many charities decide to cut costs but don't carry out a thorough review first and make rash decisions that might not be the most effective cost savings in the long run

Tip 2: Make a list and prioritise – After conducting a review, list every element of expense within the charity and look at the ROI of each of the costs, this will help make clear which expenditures to cut first

Tip 3: Listen to staff – After recognising potential cost savings speak to staff about their thoughts on reducing the expenditure. They might agree or point out a reason why the expense is vital to the charity

Tip 4: Be Objective – Weigh up all options and look at the issue from all areas of the charity before making the decision to cut or change supplier

Tip 5: Shop around – It's tempting to stay with the same suppliers for years due to lack of time to 'shop around', but this time can equate to large cost savings. What was the best deal 5 years ago, probably isn't now, so look at what other suppliers can offer

Tip 6: Negotiate – Suppliers across all sectors and industries want your business so barter with them. Don't automatically take the first offer, keep going back to each telling them you've been offered a better price

Tip 7: Take Control – Many charities allow staff to make purchasing decisions but managerial control is vital to ensure costs are kept to an absolute minimum. If this is not possible all purchases need to be visible through statements and receipts

Tip 8: Read the small print – Charities often get stung as they haven't fully understood the legalities behind contracts and agreements with suppliers. Always read the small print before signing any contract and seek advice if unsure

Tip 9: Keep up-to-date – Technology is evolving as fast as ever and there are always new ways of making tasks quicker and easier

Tip 10: Don't lose sight of quality – In difficult economic times cutting costs might seem like the only way to survive, but never make any decisions that will impair on the quality of your services. It's just not worth it.

Neill Summerfield is director of the Leeds franchise of Expense Reduction Analysts.