Not-for-Profits (NFPs) provide vital frontline services as key Government partners, including community health services, homeless services, disability services, the environment, arts, sport and recreation, child protection and education.

The South Australian Government is committed to support and strengthen collaborative partnerships between the government and the NFP sector.

The Department for Premier and Cabinet- Circular 044 - South Australian Funding Policy for the Not-for-Profit Sector (external site) (external site) (external site) (external site) (PC044) aims to provide a consistent approach to government funding, with clear requirements for agencies which reduces the administrative burden on NFPs and maintains their independence.

A Common Goal: Review of the South Australian Not for Profit Funding Policy

In 2023-24, Procurement SA partnered with the Not-for-Profit Advisory Group (‘NFPAG’) to jointly undertake a review of PC-044 – The South Australian Funding Policy for the Not-for-Profit Sector.

The purpose of the review was to identify the challenges and barriers experienced by NFPs working with Government; and explore opportunities to reduce ‘red tape’, create greater time and cost efficiencies, and improve value for money.

Procurement SA, in conjunction with the NFPAG, consulted with the largest and most diverse NFP cohort ever engaged by the Department of Treasury and Finance, alongside representative SA Government participants.

Click here (PDF) (PDF) (PDF)for A Common Goal: Review of the South Australian Not for Profit Funding Policy Report (PDF) (PDF) (PDF)

The South Australian Government’s Response to a Common Goal

The Government is committed to working in partnership with the NFP sector to realise benefits and improved outcomes for South Australia. The review has highlighted opportunities to enhance the partnership between Government and the NFP sector through various mechanisms, informed by the insights and experience of both the South Australian Government and sector.

Of the 29 recommendations made by the NFP Advisory Group, 18 have been fully supported and 11 supported in principle by the Government. Implementation of these recommendations will take place over the next four years.

Click here (PDF) (PDF) (PDF) for The South Australian Government’s Response to a Common Goal Review of the South Australian Not for Profit Funding Policy Report (PDF) (PDF) (PDF)

When working with the NFP sector, public authorities should

• Provide longer-term contracts for certain NFP arrangements, where there is ongoing budget and continuing need, agencies will look to establish longer-term contracts with NFP suppliers, where the contract is required for longer than two years and not linked to Commonwealth funding.
• Use simplified funding agreements to simplify and standardise the contracting process for services delivered by NFP organisations on behalf of the government. This Agreement is used where the NFP organisation provides services in exchange for up-front block funding. For more information, https://www.treasury.sa.gov.au/our-services/procurement-services/not-for-profit-sector-funding-and-contracting (external site) (external site) (external site) (external site)
• Apply mandatory indexation to all multi-year funding agreements between South Australian Government agencies and NFP organisations, with some exceptions. More information can be found at https://www.treasury.sa.gov.au/our-services/procurement-services/not-for-profit-sector-funding-and-contracting/indexation (external site) (external site) (external site) (external site)

Not for Profit Advisory Group (NFPAG)