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.

From 1 January 2019, the Government is delivering on its commitments relating to not-for-profit sector funding and contracting, through amendments to the State Procurement Regulations 2005 and Treasurer’s Instructions.

Effective 1 January 2019, public authorities will be 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 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.

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).

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).