Defining your relationships: Relationship frameworks and memoranda of understanding
There a various ways to formally clarify and define the type of relationships a government agency has with an NGO, including relationship frameworks and memoranda of understanding.
Relationship frameworks
A relationship framework is a non-binding collaborative agreement. It formalises the good-practice elements of the relationship with NGOs in identified areas of ongoing joint work.
Memorandum of understanding
A memorandum of understanding (MOU) covers a broader range of relationship issues than a standard funding contract. It establishes clear expectations for all aspects of the relationship between the funder and the funded agency.
Like a contract, the MOU includes details of the outputs being purchased and the performance measures. It recognises that the relationship between the funder and funded agency is long-term.
The MOU sets out key aspects of the relationship in order to establish a ‘no surprises’ working agreement including, for example, expectations of behaviour and protocols to guide communications, performance and monitoring.
An MOU describes the whole relationship between the funded and funding agency, and does not just deal with funding questions. Clear performance expectations contribute to a better relationship.
Putting all these requirements into one document makes it easier to monitor progress.
Examples of relationship frameworks and MOU
See examples from the New Zealand Agency for International Development (NZAID), the Ministry of Health, and Ministry of Culture and Heritage, and read about the English Compact and Australia's exploration of a Compact.
