Code 5: Flexibility and innovation
Encourage innovation
Criterion 5.1
The potential for non-profit organisations to be innovative will be recognised and encouraged.
Indicators required to achieve this include:
5.1.1 Recognition that both the funding agencies and non-profit organisations have expertise in the best way of doing things.
5.1.2 Parties to a funding agreement are encouraged to work together to tailor programmes to meet local needs and priorities.
5.1.3 Incentives to reward innovation may be negotiated as part of the service delivery agreement. Any incentives negotiated are transparent.
5.1.4 The funding agreement should be designed to facilitate innovation (as appropriate) with the emphasis on outcomes or outputs. Any barriers to innovation will be identified and either removed or justified by either party.
5.1.5 Input-based agreements may be used where reasonable and consistent with this code.
5.1.6 Opportunities for two or more funding agencies, and/or two or more non-profit agencies to be part of the funding agreement should be explored.
Encourage flexible approaches
Criterion 5.2
The potential for non-profit organisations to be flexible in meeting agreed outcomes should be recognised and encouraged.
Indicators required to achieve this include:
5.2.1 All parties to the agreement agree to the monitoring framework to be used to measure performance against the desired outcomes.
5.2.2 Where appropriate, the agreed monitoring framework encourages the achievement of multiple outcomes.
5.2.3 Current, relevant research and information are available to support discussions; the funding agreement will specify which party/parties are responsible for providing this.
5.2.4 Funding agreements should include a provision to make amendments to the agreement, by the mutual agreement of all parties, where this allows innovation or adaptation to changing circumstances.
5.2.5 The funding agreement should be designed to facilitate flexibility with the emphasis on outcomes or outputs. Any barriers to flexibility will be identified and either removed or justified by either party.
