Surer Funding
The report of the acevo Commission of Inquiry, making recommendations for a more effective funding relationship between third sector and government, was launched on Tuesday 30th November 2004.
Supported by a year-long research project by New Philanthropy Capital (NPC), which has consulted with over 200 third sector organisations and funders during the course of its research, the Commission has examined the views of third sector CEOs and funders on the scope for an increased role in public service delivery, and their experience of the challenges and barriers involved; the scope for more effective funding arrangements, including longer-term service delivery contracts and contracts that involve a more effective distribution of risk.
The Commission proposed the following key principles to guide reform:
- Sharing the responsibility for the risk of delivery
- Contracts are of an appropriate timescale
- Cutting waste caused by bureaucracy
- Fair costing and pricing
These recommendations were reflected in Sir Peter Gershon's 2004 review of efficiency:
"3.30 In light of discussions with representatives of the voluntary and community sector (VCS) and departments I recommend the Government improves its funding relationship with the VCS by:
- improving stability by moving to longer-term, multi-year funding arrangements where possible;
- considering carefully the appropriate assignment of risk between the statutory body and the voluntary and community organisation when contracting for service provision;
- making further progress towards full acceptance of the principle of full cost recovery, ensuring publicly-funded services are not subsidised by charitable donations or volunteers; and
- streamlining and rationalising monitoring, regulatory and reporting requirements."
Gershon 2004, "Releasing resources to the front line" p.28
