Funding relationships

Relationship guidance on this website relates specifically to relationships around funding, however you will also find useful information and guidance on good relationship principles and practice on the Good Practice Participate website.

Government funding of community and voluntary organisations helps to ensure services are delivered cost-effectively by the most appropriate providers. Work is underway to quantify the value of the work being done by community and voluntary organisations.

Consistent and transparent funding of NGOs, including targeting funds for volunteering, helps to build the strength and capacity of the community and voluntary sector.

Good funding criteria can be used to help judge the likely success or failure of funding arrangements.

The Auditor-General emphasises the need for government agencies to be committed to effective relationships with NGOs in the guide Managing funding to non-government organisations – from principles to practice.

A relationship framework is a non-binding collaborative agreement. It formalises the good-practice elements of a relationship between a government agency and NGOs, and ensures consistency and transparency in identified areas of ongoing joint work.

A memorandum of understanding establishes clear expectations for all aspects of the relationship between the funder and the funded agency.