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Findings from funding study published in Compact Week
6 Nov 2007
The study looked at ‘Central Government Grants for the Voluntary and Community Sector and the extent to which they comply with the Compact.’
Commission publishes findings from funding study as part of Compact Week 2007 Now | Next
'Central Government Grants for the Voluntary and Community Sector and the extent to which they are comply with the Compact.’ [PDF 220KB, 25 Pages]
Questions and Answers [WORD 32.5KB, 3 pages]
The Commission is working closely with government departments and the third sector to learn lessons and to particularly improve the design and operation of funding programmes after evidence identified a need for greater Compact compliance in a recent funding study
The Commission reviewed 41 government funding programmes operating over the last 3 years which were aimed wholly or partly at voluntary and community organisations. The report revealed progress towards implementing four key Compact undertakings on funding could be improved including; offer three year funding; full cost recovery; payment in advance and at least three months notice.
Out of 41 Government Funding Programmes since 2005 we found:
22 Programmes where three year funding or more was the norm or was allowed for by three year funding settlements or framework agreements, or there was at least one three year funding stream in the programme.
16 Programmes or streams which aimed for Full Cost Recovery or said they fund ‘full costs’, including grant-in-aid core funding arrangements, and a further;
18 Programmes or streams where core costs were funded or overheads were expected to be included, although there were usually exceptions or caveats.
33 Programmes where payment in advance of need was provided or possible.
8 programmes where decisions were made in time to allow a three month lead-in time before the start of the project, and these were mostly National Lottery programmes which do not need to conform to financial years.
14 Programmes were advertised on the Government funding portal, http://www.governmentfunding.org.uk/ a further 5 through the National Lottery funding portal.
Helen Baker, Chair and Interim Commissioner said; “It is vitally important to ensure that Compact is a living means of driving partnerships with good outcomes for all, we will be discussing with all our partners how best to update the Compact, to keep it relevant for the future based on their experience of implementing the Compact so far.”
Other recent findings by the Commission
In July the Commission reported to the Parliamentary Inquiry on commissioning from the third sector. The Commission highlighted that despite the general commitment to the Compact, both government and the sector have a gap to close in practical implementation; particularly when delivering full cost recovery, longer-term funding and reducing disproportionate bureaucracy. There is also a growing tension between open sector-blind service procurement which requires competitive procedures to be fair to all; and the special undertakings that government has made to the third sector in (or alongside) the Compact.
The Commission has also responded this week to the DWP green paper ‘In work Better Off’ reiterating these points and seeking to take forward work with DWP and the sector, to ensure that the DWP’s plans for commissioning link to the government’s commitment to support and nurture the third sector. ‘Commissioning’ is not currently referred to in the Compact and Codes, it is a crucial mechanism for the sector to exercise their voice and advocacy to shape programmes; as well as in funding and procurement and to make arrangements for sub-contracting which reflect Compact principles.
For enquiries contact richard.stone@thecompact.org.uk 0121 237 5900