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8 september 2003

GUIDANCE TO FUNDERS

Background

The cross cutting review of the Role of the Voluntary and Community Sector in Service Delivery recommended that Treasury publish Guidance to Funders, to clarify what is and is not permitted under Government Accounting as it applies to the voluntary and community sector (VCS).

The cross cutting review found that often there is a lack of consistency in the interpretation of Government Accounting Rules, and a widespread perception that so-called “Treasury rules” are inflexible.

The Government realises that getting the funding relationship right is increasingly important if the financial stability of service delivery organisations is to be assured, and if government can look confidently to the voluntary and community sector to deliver services.

Guidance to Funders document

The guidance is intended to help government departments, non-departmental public bodies (NDPBs), other funding bodies themselves distributing public money to voluntary and community organisations.  It will also be of interest to the VCS, who as recipients of funding, can be able to better understand the considerations that funding bodies need to bear in mind during the funding process.

The document addresses two specific issues:

  • It clarifies what Government Accounting says about the timing of payments by funders to voluntary and community organizations (responding to recommendation 19 of the cross cutting review).
  • It explains the opportunities for moving to more stable funding relationships between funders and voluntary and community organizations (responding to recommendation 21 of the cross cutting review).

Documents

PDF file of Guidance to Funders document , (288Kb) September 2003
Press Notice, September 2003

Compact Working Group consultation on the Compact Funding Code of Good Practice

In addition to Guidance to Funders, there is a series of other guidance produced both by Government and by the voluntary and community sector (or representatives there of).  One of these is the Compact Funding Code of Good Practice.

The Compact Working Group, the body which takes forward the Compact in the voluntary and community sector, issued a draft new version of the Compact Funding Code on 3 November 2003.  For more information, see the  Compact Working Group website , or contact Carol Osbourne.

Launched in 1998, the Compact aims to provide a framework for partnership relations between government and the voluntary and community sector.  Over the past five years, five good practice codes on volunteering; consultation; black and minority ethnic community organisations; funding; and community groups have been developed.

 

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Cross cutting review of the role of the voluntary sector index

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