VICTORIAN COMMON FUNDING AGREEMENT
Fact Sheet for Victorian government departments
The Victorian Common Funding Agreement (the Agreement) is used by all Victorian government
departments when funding the not-for-profit (NFP) community sector and local government for
human and community services and community projects, including specified capital works1.
What is the Victorian Common Funding Agreement
The Agreement provides a standardised funding agreement for use by all Victorian government departments
when funding the not-for-profit (NFP) community sector and local government for human and community
services and projects, including specified capital works.
Designed to benefit all users by being scalable, predictable and easy to understand, the Agreement is based on
core Terms and Conditions that apply to all funding, and which are used as a basis for three consistent, riskproportionate forms of Agreement:

Short Form used with lower risk funding as an abridged version of the Standard Form

Standard Form used for most types of funding comprising a Schedule and the core Terms and
Conditions (may also be referred to as the 'long form')

Service Agreement form used for funding health, human and early childhood services through the
Department of Health & Human Services (DHHS) and the Department of Education & Training (DET).
A Clause Bank of additional terms and conditions is drawn on to support each form of Agreement, as needed.
The diagram below illustrates the Agreement model and how its parts fit together.
1
Capital works funding which involves Alliance Contracting, Partnerships Victoria including Public Private Partnerships, Major Projects
Victoria, or which is provided by the Director of Housing to housing agencies registered under Part VIII of the Housing Act 1983 (Vic)
or must comply with the Victorian Government Public Construction Policy is out of scope for application of the Victorian Common
Funding Agreement.
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VICTORIAN COMMON FUNDING AGREEMENT
FACT SHEET-FUNDING RECIPIENTS
DECEMBER 2015 VERSION 2.0
Who uses the Agreement and what funding it covers
Users in scope
Victorian government departments use the Agreement with different types of funding recipients in the
following ways:

Mandated for use when funding NFP community
organisations2
For the purpose of the Agreement, NFP community
organisations are:

Authorised for use as the standard funding
agreement when funding local councils as defined
under the Local Government Act 1989 (Vic)
“Organisations that operate for social or
community purposes, do not distribute
profits to members, are self-governing and
independent of government.”

Optional to use when funding individuals or other
types of organisatons3.
Source: Victorian Public Sector Commission (formerly
State Services Authority), 2011
Other funding providers can use the Agreement with their own
recipients under specified Creative Commons licensing
provisions that maintain the integrity of the Agreement.
Organisations with a legal status as an
Incorporated Association, Co-operative, or
Company Limited by Guarantee may fall into this
category.
Funding in scope
In its scope for use, the Agreement covers a broad range of
grant funding for human and community services and projects,
including specified capital works, which may be allocated
through a grant program or other funding initiative on a onceoff or recurrent basis, regardless of whether the funding
process is ad-hoc, competitive, negotiated or targeted.
The Standing Directions of the Minister for Finance under the
Financial Management Act 1994 acknowledge grants as a
discretionary financial benefit.
For the purpose of the Agreement, grant funding is:
“Money given to organisations or individuals
for a specified purpose to achieve objectives
consistent with government policy…
including ad hoc payments, competitive
assessment or when specified criteria are
satisfied.”
Grant funding excludes donations, sponsorships,
the non-contested transfer of funds to a
government entity, and procurement or purchase
of good or services on commercial terms.
Source: Victorian Government ‘Better Grants by Design’, 2014
Why we have the Agreement
The Agreement reduces red tape and streamlines administrative processes associated with the provision of
Victorian government funding in response to sector calls for simpler funding arrangements. In turn, this helps
to strengthen the capacity and performance of funded organisations while improving state and sector
relations.
For more information

Visit the Victorian Common Funding Agreement webpage

Contact VCFA support at cfaproject@dhhs.vic.gov.au or on (03) 9096 1213

Touch base with your funding department’s contact – see your funding agreement for details.
2Examples
of NFP community organisations include Aboriginal community controlled organisations (ACCOs), 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, and volunteer groups.
3The
Agreement may be used for the funding of businesses or non-core services for hospitals, medical centres, professional associations,
religious congregations, research institutes, schools, TAFE colleges, trade unions, or universities.
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VICTORIAN COMMON FUNDING AGREEMENT
FACT SHEET-FUNDING RECIPIENTS
DECEMBER 2015 VERSION 2.0