Good Practice Funding

Code 1: Respect

Foundations of respect

Criterion 1.1 

The relationship between the funding agencies and non-profit organisations will be based on respect and will acknowledge the accountability, complementary roles, and responsibilities of each of the parties.

Indicators required to achieve this include:

1.1.1 The funding agreement sets out a relevant description of each party and the purpose and objectives of the agreement, including why the non-profit organisation has been selected. 

1.1.2 The roles which may include providing leadership on particular issues, of each of the parties to the funding agreement, will be specified.

1.1.3 Explicit recognition in the funding agreement of the independence and autonomy of the non-profit organisation.

1.1.4 Recognition of the expertise of the non-profit organisation to manage its affairs consistent with its constitution and other legal obligations.

1.1.5 Acknowledgement of the non-profit organisation to have the right to act as individual or system advocates without putting their funding agreement at risk.

1.1.6 Acknowledgement of the need for both parties to meet accountability requirements, including demonstrating integrity, probity, and value for money, for the expenditure of public funding.


Good faith

Criterion 1.2 

Any negotiation is conducted in good faith.

Indicators required to achieve this include:

1.2.1 Recognition in the funding agreement that the agreement is a joint endeavour in which all parties have shared goals to achieve benefits for specific people, groups, or communities.

1.2.2 All parties, or their representative, to the funding agreement agree on the services or outputs to be delivered.

1.2.3 The process allows for negotiation of the terms of the funding agreement. Where standard service specifications are used for contracting, the opportunity to negotiate is normally undertaken at the appropriate level, that is, sector level rather than on an individual organisation basis.