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I'm not sure I can write down my thoughts in more detail, only to share that when the charity I prev worked for starting asking questions about how costs could be recouped by encouraging suggested donations from the beneficiaries of our interventions it was clear the system was breaking imo. This was 10yrs ago.
The extent of this is awful https://www.theguardian.com/society/2023/nov/13/charities-near-insolvency-after-subsidising-public-sector-contracts