COMMON FUNDING
AGREEMENT
FACT SHEET FOR NFPs
As of January 2013, all Victorian Government departments started using the whole
of Victorian Government Common Funding Agreement for new funding agreements
with not-for-profit organisations for community services and projects.
What is the Common Funding Agreement?
The Common Funding Agreement provides a standard funding agreement structure and content for use with
the NFP community sector. It has:
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An editable Schedule that is used with locked down, standard Terms and Conditions
An editable Short Form for lower risk funding
A Clause Bank of additional terms and conditions for use with the Schedule or Short Form.
Why has the Common Funding Agreement been introduced?
Victoria’s NFP sector is made up of around 120,000 organisations. The Victorian Government provides
approximately $2.2 billion in funding each year to the sector for a wide range of services and projects that
benefit Victorians.
This funding has been managed using many different agreements. The NFP sector has told the Government
that this has led to increased administrative burden and that funding arrangements need to be simplified.
Led by DHS’s Office for the Community Sector in close collaboration with all departments and NFPs, the
Common Funding Agreement establishes one standard funding agreement to address the sector’s needs.
To what and who does the Common Funding Agreement apply?
Government
Departments need to use the Common Funding Agreement for community
services or project grants of any amount directly administered through a
program or other funding initiative, be they allocated through a contested or
negotiated process or provide on a once-off or recurrent basis.
Statutory authorities or agencies can opt in to using the Common Funding
Agreement.
NFP community organisations
Departments must use the Common Funding Agreement with NFP community
organisations. Many types of organisations fall within this scope, such as:
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Community arts organisations, community clubs, community service
and health providers, co-operatives, drug and alcohol services,
industry organisations, kindergartens and preschools, neighbourhood
houses and community centres, peak bodies, self help groups, social
enterprises, sport and recreation clubs, tourism groups, Victorian
Aboriginal community organisations, and volunteer groups.
NB. Additional work is underway to transition Victorian Aboriginal
community organisations and their relevant funding providers to
enable transition from the Victorian Indigenous Funding Agreement
(VIFA) that they currently use.
Some NFP organisations are out of scope, such as:
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Religious congregations, schools (government and non-government),
universities, TAFE colleges, research institutes, hospitals, medical
centres, trade unions, professional associations, or Local Government.
State Services Authority
(SSA) definition of a NFP
Organisation:
Organisations that operate for
social or community
purposes, do not distribute
profits to members, are selfgoverning and independent of
government.
Organisations with a legal
status as an Incorporated
Association, Co-operative, or
Company Limited by Guarantee
may fall into this definition.
‘Better Grants by Design’
definition of a Grant:
“Money given to organisations
or individuals for a specified
purpose directed at achieving
goals and objectives
consistent with government
policy…for community or
business projects, and for
service delivery…
“Grants do not cover
donations, sponsorships, noncontested transfer of funds…,
commercial contracts or
procurement.”
What does it mean for your organisation?
Departments officially started using the Common Funding Agreement in January 2013. You will notice over
time that your funding paperwork will be streamlined, be more predictable and consistent over time with the
same structure, order and flow of information used in funding agreements issued by departments.
You won’t need to retrofit existing agreements as the Common Funding Agreement does not need to apply:
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Retrospectively to existing funding agreements signed before 1 January 2013
To variations to funding agreements initially entered into before 1 January 2013
To funding agreements that were negotiated by 1 January 2013 and are waiting to be signed.
If your organisation receives services-related funding from the Department of Human Services (DHS),
Department of Health (DH) or the early childhood area of the Department of Education and Early Childhood
Development (DEECD), your funding will continue to be managed under the Service Agreement you currently
have in place which has been aligned with the Common Funding Agreement.
Existing funding management processes and systems will continue to be used with your organisation.
What can you do now?
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Visit the DHS website at for further information, guidance and tools
Refer to the Service Agreement Information Kit and other business guidelines in relation to DHS, DH
and DEECD Service Agreements
Speak to the contact in the department you receive funding from
Contact the Office for the Community Sector at cfaproject@dhs.vic.gov.au or on 9096 1183.
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WHOLE OF VICTORIAN GOVERNMENT
COMMON FUNDING AGREEMENT
FACT SHEET