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New standard contracts big boost for SA not-for-profits

The not-for-profit (NFP) sector is set to receive fairer funding terms and easier-to-use templates when applying for grants and procurement of services.

By standardising contract templates, NFPs will benefit by saving time and money on what was an inconsistent and often onerous process.

The State Government has introduced the new standardised contracts as of 1 January 2019 as part of the South Australian Funding Policy for the NFP Sector Framework after two years of negotiation with sector representatives.

The contracts will cover hundreds of millions of dollars in government funding across arts, sport, environment, child protection, family welfare, low income support, drug and alcohol and gambling rehabilitation and other social services.

SACOSS CEO, Ross Womersley said, “These new contracts will make the work of the non-government health and community services sector easier and better enable us to provide vital services to vulnerable and disadvantaged people in our state.

“We are confident that the new standardised contract templates will provide significant red tape reduction for our sector because the contract conditions will be the same regardless of which department or agency is providing the funding.

“The new contracts also remove many vague and intrusive clauses and conditions in the old contracts which constrain the independence of our sector.”

Volunteering SA&NT CEO, Evelyn O’Loughlin who chaired the NFP sector/Government Working Group said, “Negotiation of these contracts began under the former government and the incoming government promised to complete the process and implement the new contracts – which they now have.

“The finalisation of these standardised contracts is a significant milestone of reform which we want to acknowledge.

“After such a long negotiation, it is certainly good news. These new contact templates replace the former two-step process and reduce the need for legal checks and potential disputes over basic terms.”, said Ms O’Loughlin.

Information and training sessions for NFPs will be held in February, please visit SACOSS website for the details.

*All contract negotiations begun after 1 January 2019 should use the new templates. Existing contracts remain unaffected, but Master Agreements will not apply to the new contracts.

Published Date: 
Friday, 18 January 2019