Funding options

Collaboration and partnership is often expected if public policy objectives are to be realistic and achievable. However, strong and sustainable relationships and partnerships may be difficult to achieve where there are disparities between public entities and Non Government Organisations in terms of power, size, and governance structures.

Public agencies need to consider the principles below, and select the most appropriate resourcing arrangement - contract, grant or another option - in funding Non Government Organisations.

Public entities are accountable for their performance and their use of public resources. This means public entities are accountable for the measurable achievement of the goals that the funding arrangements were designed to meet.

Once a decision is taken that public resources can be best applied for the public benefit through funding arrangements with Non Government Organisations, public entities should seek to understand the context that Non Government Organisations operate in, and work with them to identify and manage the risks to both parties of entering into funding arrangements.

Public entities should consider the principles of lawfulness, accountability, openness, value for money, fairness, and integrity in their decision-making about all funding arrangements.

There is tension between the principle of accountability, the principle of openness, and the trust relationship set out in the Government’s commitment to a genuine partnership with the community and voluntary sector. The Auditor-General considers that relationship-building is essential for the effective operation of public entities’ funding arrangements with Non Government Organisations.

Public entities should be aware of any compromises that need to be made between principles in order to achieve the best possible public benefit. They must manage the risks in this, and be open and transparent about their decisions.

The Auditor-General has published principles to assist agencies with funding of Non Government Organisations.

Public entities are accountable for their performance and their use of public resources. This means public entities are accountable for the measurable achievement of the goals that the funding arrangements were designed to meet.

Once a decision is taken that public resources can be best applied for the public benefit through funding arrangements with Non Government Organisations, public entities should seek to understand the context that Non Government Organisations operate in, and work with them to identify and manage the risks to both parties of entering into funding arrangements.

Public entities should consider the principles of lawfulness, accountability, openness, value for money, fairness, and integrity in their decision-making about all funding arrangements.

There is tension between the principle of accountability, the principle of openness, and the trust relationship set out in the Government’s commitment to a genuine partnership with the community and voluntary sector. The Auditor-General considers that relationship-building is essential for the effective operation of public entities’ funding arrangements with Non Government Organisations.

Public entities should be aware of any compromises that need to be made between principles in order to achieve the best possible public benefit. They must manage the risks in this, and be open and transparent about their decisions.

The Auditor-General has published principles to assist agencies with funding of Non Government Organisations.

A grant is usually not as prescriptive as a contract. It may allow the Non Government Organisations more flexibility in determining how it meets the goals it shares with the funder. Flexibility can be useful for both funder and recipient (eg, when funding contributes to or part-pays the work of an Non Government Organisations and funding agency does not seek a high level of control).

Support for the work of a Non Government Organisation can take forms other than the transfer of money.