Not-for-Profits (NFPs) provide vital frontline services as key Government partners, including community health services, homeless services, disability services, the environment, arts, sport and recreation, child protection and education.

The South Australian Government is committed to support and strengthen collaborative partnerships between the government and the NFP sector.

The Department of the Premier and Cabinet - Circular PC044 South Australian Funding Policy for the Not for Profit Sector (PC044) is based on best practice principles and aims to support and strengthen collaborative partnerships between government and the NFP sector. It provides a consistent approach to government funding, with clear requirements for agencies with an aim to reducing the administrative burden on NFPs and maintains their independence.

A Common Goal: Review of the South Australian Not for Profit Funding Policy

In 2023-24, Procurement SA partnered with the Not-for-Profit Advisory Group (‘NFPAG’) to jointly undertake a review of PC044.

The purpose of the review was to identify the challenges and barriers experienced by NFPs working with Government; and explore opportunities to reduce ‘red tape’, create greater time and cost efficiencies, and improve value for money

Procurement SA, in conjunction with the NFPAG, consulted with the largest and most diverse NFP cohort ever engaged by the Department of Treasury and Finance, alongside representative SA Government participants.

Click here for A Common Goal: Review of the South Australian Not for Profit Funding Policy report.

The South Australian Government’s Response to a Common Goal

The Government is committed to working in partnership with the NFP sector to realise benefits and improved outcomes for South Australia. The review has highlighted opportunities to enhance the partnership between Government and the NFP sector through various mechanisms, informed by the insights and experience of both the South Australian Government and sector.

Of the 29 recommendations made by the NFP Advisory Group, 18 have been fully supported and 11 supported in principle by the Government. Implementation of these recommendations will take place over the next four years.

Click here for The South Australian Government’s Response to a Common Goal Review of the South Australian Not for Profit Funding Policy report.

Historical Reviews

2020-21: The Not-for-Profit Funding Agreement Co-Design Team: Report on the Effectiveness of the Not-for-Profit Funding Policy (PDF) and the South Australian Government’s Response to the Review of the Effectiveness of the Not- for-Profit Funding Policy (PDF).

Simplified Funding Agreements

Effective 1 January 2019, the Government approved several improvements designed to simplify funding agreements, including requiring public authorities to use standard agreements specifically developed for funding arrangements with NFPs and mandating the use of standardised indexation.

These 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 special clauses that may be brought into the agreement if needed.

NFP Funded Services Agreement – for when procuring services from an NFP that requires some amount of up-front payment.

Access the NFP Funded Services Agreement: template, user guide, special conditions and execution blocks (external site).

NFP Grant Agreement – for low to medium risk grants to an NFP (for a grant valued greater than $10,000 (GST exclusive).

NFP Low Value Grant Letter – for low risk and low value grants of up to $10,000 (GST exclusive).

NFP Low Value Non-Recourse Grant Letter – for low risk and low value non-recourse grants (up to $10,000 GST exclusive).