Further reading on funding processes

This page provides links to further NZ and international guidance on good funding practice and principles, contracting and grant-making to NGOs.

Good funding practice - NZ guidance

Achieving Public Sector Outcomes with Private Sector Partners
This report aims to inform leaders and decision-makers about the issues to consider across the public sector and for individual projects. It draws on the experience of overseas jurisdictions, mainly Australia and the United Kingdom, and provides examples of partnering arrangements in New Zealand.

Funding for Results: What Does the Auditor-General Expect?
This paper explores the Auditor-General's expectations around funding agreements with non-government organisations. 2005.

Funding/Grant Programmes – Guidance from the Auditor General
A list of the reports, articles, and presentations produced by the Office of the Auditor-General that discuss funding arrangements or grant programmes. New Zealand

Good Practice in Action seminar presentations
The Office for the Community and Voluntary Sector (OCVS) hosts interactive seminars to promote the sharing of information and good practice to strengthen relationships with the community and voluntary sector. These include full-day Good Practice in Action (GPIA) seminars and 90-minute Good Engagement seminars. The focus is on information sharing, results-based learning, and acquiring knowledge and expertise built on the good practice of others. Many of the presentations explore the topcis of funding, accountability, risk management and the associated relationships with community sector organisations. This page includes powerpoints, presentation notes and video.

Government Procurement - Links Provided by the Ministry of Economic Development
This website includes links to key guidance material on government procurement processes.

Government Procurement in New Zealand: Policy Guide for Purchasers
Government procurement policies (especially in relation to legislative and inter-government commitments) are detailed in the Ministry of Economic Development's report, Government Procurement in New Zealand: Policy Guide for Purchasers.

Managing Funding to Non-government Organisations – From Principles to Practice
The Auditor-General's office expects the principles and risk-based approach outlined in its principles guide to be evident in the management of funding arrangements with Non-Government Organisations. The management of funding arrangements should be appropriate to the risks involved, such as the size and length of the funding arrangement and the "track record" of the provider. This 2008 guidance provides direction based on the examination of nine case studies from the Ministry of Health. New Zealand, 2008.

A Non-government Organisation Perspective on Good Funding Practice
Good funding criteria were developed in 1999 by the New Zealand Council of Christian Social Services in partnership with the New Zealand Federation of Voluntary Welfare Organisations, and in consultation with the New Zealand Council of Social Services. A summary of Criteria for Judging Government Funding Arrangements for the Community Sector: The Views of Community Social Service Providers is available here.

Pre-funding Information: Services for Young People
The Ministry of Youth Development provides government funding and manages contracts for selected youth development services. Services for Young People: Policy and Guidelines provide information on the purpose and processes of funding for youth development across New Zealand.

Principles to Underpin Management by Public Entities of Funding to Non-government Organisations
This good practice guide sets out the principles that the Auditor-General expects public entities to consider – and act in keeping with – to manage funding arrangements with Non-Government Organisations. It takes a principles-based approach to guide public entities when they enter into funding arrangements with Non-Government Organisations. The guide has been developed for central and local government. 2006

Procurement Guidance for Public Entities
This good practice guide updates and replaces the Office of the Auditor-General’s 2001 publication ‘Procurement: A Statement of Good Practice’. At the time of publication, the OAG was considering whether it would be useful to produce equivalent guidelines on grants. NZ government, June 2008

Public Funding of Organisations Associated with Donna Awatere Huata, MP
The Controller and Auditor-General investigated allegations of financial impropriety involving Donna Awatere Huata MP. Some of the money that was the subject of the allegations had originated from public sources – primarily through a series of funding contracts between an Non-Government Organisation and the Ministry of Education. As the auditor of public entities, the Auditor-General had an interest in ensuring the integrity of such funding arrangements. This report summarises the Auditor-General's findings. New Zealand, 2003.

Public Sector Purchases, Grants & Gifts: Managing Funding Arrangements with External Parties
This overarching guidance from the Office of the Auditor-General explains the range of funding arrangements and how to think about which type of arrangement suits a particular circumstance. That range covers conventional purchasing contracts, relational purchasing arrangements, grants, and gifts. The OAG’s good practice guidelines on procurement discuss in more detail the expectations for how public entities will plan and manage arrangements to purchase goods or services. NZ government, 2008.

Tendering Lessons from Auckland City Council
Tender documents legally define the service that is being purchased and must be clear and enforceable. Lessons are drawn from a dispute between Onyx Group Ltd and Auckland City Council.

Treasury Funding Guidelines
These Treasury guidelines are intended to help government agencies develop better practices in contracting with non-government organisations. The guidelines cover planning, choosing a provider, negotiating the terms of the contract, managing and monitoring the contract, and review and evaluation.

Youth Development Partnership Fund
The Youth Development Partnership Fund provides an opportunity for the Ministry of Youth Development, territorial authorities and young people to work together to provide new and innovative local youth development projects. The webpage gives more detail about the fund.

Overseas guidance

Foundation Boards Should Demand Failure, Expert Claims: Stanford Social Innovation Review
This brief article discusses the call of Dr Joel Orosz (founder of The Grantmaking School) for funders to plan for "experimental failure". Stanford Social Innovation Review, USA, July 2007.

GEO's General Operating Support Action Guide
Grantmakers can go a long way in supporting the effectiveness of their grantees to achieve their missions. Providing general operating support is one of the most powerful ways to do so. General Operating Support Action Guide and Listen, Learn, Lead are excellent starting points for anyone who is looking to master the basics. Grantmakers for Effective Organisations, USA.

Governmentfunding.org.uk
This British Government site provides online access to grants for the voluntary and community sector from the Department for Communities and Local Government, Department for Education and Skills, Department of Health, Home Office and Government Offices for the Regions. Users can register free to search for grant information and to apply online.

Grant Funding Guidance
The UK Department of Health is responsible for setting health and social care policy in England. The Department's work sets standards and leads a "modernisation" agenda across all areas of the National Health Service, social care and public health. As well as policy documents, this section of the site contains guidance on grants to voluntary organisations in England whose activities support the Department's policy priorities. International Government – United Kingdom.

Grantmakers for Effective Organisations Change Agent Project (Powerpoint, 508KB)
Washington-based Grantmakers for Effective Organisations (GEO) recently completed the Change Agent Project which examined ways in which grantmakers can help grantseekers be more successful. The Change Agent Project started from the premise that grantmakers are successful only to the extent that their grantees achieve meaningful results. This presentation is from GEO’s Director of Programmes, Courtney Bourns, who facilitated a series of funder forums in New Zealand in July 2008.

Grassroots Grants
Grassroots Grants is a £130 million programme that aims to invest in the UK community sector. It is funded by Office of the Third Sector and delivered by the Community Development Foundation. The programme is divided into two parts: an £80 million small grants fund for community organisations; and a £50 million endowments programme to enable local funders to generate additional donations on a matched basis and invest them in endowments, thereby building their capacity to provide long-term funding for frontline community organisations. United Kingdom, 2008.

In Search of Impact: Practices and Perceptions in Foundations' Provision of Programme and Operating Grants to Nonprofits
One of four research studies commissioned by the Aspen Institute Nonprofit Sector Research Fund on funding of core operating costs of non-profit organisations. Centre for Effective Philanthropy, USA, 2006.

Making Grants Efficiently in the Culture, Media and Sport sector
This UK National Audit Office report looks at the cost-efficiency of making grants in the culture, media and sport sector. In 2006-07, the nine principal grant-makers in the sector, sponsored by the Department for Culture, Media and Sport received some £2 billion in funding from the Exchequer and the National Lottery and awarded grants totalling £1.8 billion. International Government, United Kingdom, 2008

Paying for Overheads: A Study of the Impact of Foundations' Overhead Payment Policies on Educational and Human Service Organisations
One of four research studies commissioned by the Aspen Institute Nonprofit Sector Research Fund on funding of core operating costs of non-profit organisations. Centre on Philanthropy, Indiana University, USA, March 2007.

Recent Grantmaking Changes: Vancouver Foundation
In 2006, the Vancouver Foundation (BC) met with groups across the province in an exercise called "Community Conversations." The purpose was to have frank discussions with its various stakeholders on how Vancouver Foundation could better serve their needs. While the Foundation was praised for how it has addressed the gaps in government funding, its willingness to fund leading-edge projects, its helpful resources, and the status that a grant from Vancouver Foundation can bring to a charity, there were also suggestions for how it could better assist struggling not-for-profits. International Non-Government (2006)

Restricted Funding Misses the Point: Stanford Social Innovation Review
This brief article outlines the dangers of only thinking in terms of "project" funding and the value of operating grants. Stanford Social Innovation Review, USA, June 2007.