Not-for-profit sector funding and contracts have been simplified. The Government has approved a number of changes designed to simplify funding agreements, mandate the use of standardised indexation and adopt the principles of Premiers Circular PC044 South Australian Funding Policy for the Not for Profit Sector (the NFP Funding Policy). This policy is based on best practice principles and aims to support and strengthen collaborative partnerships between government and the not-for-profit (NFP) sector.
In January 2019, the Government further strengthened its commitment relating to not-for-profit sector funding and contracting, through amendments to the State Procurement Regulations 2005 and Treasurer’s Instructions.
On 17 May 2019, the South Australian Productivity Commission (SAPC) released its final report following stage 1 of its inquiry into Government Procurement. The SAPC made several recommendations relating specifically to NFP sector procurement including that an evaluation of the implementation of the NFP Funding Policy be conducted.
In response to the SAPC recommendations DTF, together with representatives from the NFP Sector, undertook two surveys to review the effectiveness of the NFP Funding Policy. Focusing on identifying any impediments to, and opportunities to strengthen the implementation of the NFP Funding Policy, they developed a Report with 20 recommendations aimed to increase the capability of government to apply the principles of the NFP Funding Policy and provide further transparency and clarity to the NFP Sector.
The South Australian Government is committed to working closely with the NFP Sector to deliver significant benefits and outcomes to South Australian clients and communities and is pleased to release its response and implementation plan relating to the 20 recommendations outlined in the Report on the Effectiveness of the Not-for-Profit Funding Policy.
Simplified Funding Agreements
Effective 1 January 2019, public authorities are required to use the following standard funding agreements. These agreements have been specifically developed for funding arrangements with not-for-profit organisations as defined in the NFP Funding Policy (PC044).
Not-for-profit Funded Services Agreement - for public authorities that are procuring services from a not-for-profit organisation that requires some amount of up-front payment.
Access the Not-for-profit Funded Services Agreement template, user guide, special conditions and execution blocks.
The Funded Services Agreement and not-for-profit Grant Agreements consist of standard terms and conditions relevant to the funding type with an attachment of details specific to the contract, and a clause bank of special conditions. The clause bank contains a number of clauses that may be brought into the contract if needed.
Not-for-Profit Grant Agreement – a standardised grant agreement for all low to medium risk grants to the NFP sector valued at greater than $10,000 (GST exclusive).
- Grant Agreement January 2019
- Grant Special Conditions Clause Bank January 2019
- Not-For-Profit Grant Agreement User Guide
Not-for-profit Low Value Grant – a simple letter agreement for low value grants of up to $10,000 (GST exclusive).
Low Value Non-Recourse Grant – a simple letter agreement for low value non-recourse grants (up to $10,000 GST exclusive).