Victorian Common Funding Agreement

The Victorian Common Funding Agreement is used by all Victorian Government departments that fund not-for-profit community organisations to deliver services and projects, including specified capital works*.

The Victorian Common Funding Agreement reduces red tape and simplifies funding arrangements with both the not-for-profit community sector and the local government sector. This is because the agreement establishes a standardised approach to how funding is managed across all Victorian government departments.

The Victorian Common Funding Agreement model is based on core terms and conditions that apply to all funding. These are used as the basis for 3 consistent, risk-proportionate forms of funding agreement:

  • A short form – used for lower risk grant funding
  • A standard form (also known as the ‘long form’) – comprising a schedule and core terms and conditions. Used for a wide range of projects and services 
  • A service agreement form – comprising of standard terms and conditions,  used with a set of schedules. Used for community, health and early childhood services funded through the department and the Department of Education & Training (DET).

There are also standardised additional clauses and user resources that foster consistencyof content throughout each form of agreement.

*Capital works funding, which involves any 1 of the following, are is out of scope for the application of the Victorian Common Funding Agreement:

  • Alliance contracting
  • Partnerships Victoria, including Public Private Partnerships
  • Major Projects Victoria
  • Those which are provided by the Director of Housing to housing agencies, registered under Part VIII of the Housing Act 1983 (Vic)
  • Those which must comply with the Government Public Construction Policy.
  • Updated version of the Victorian Common Funding Agreement- December 2015

    The Victorian Common Funding Agreement has been updated. From December 2015, all Victorian Government departments will be using the updated agreement when funding the not-for-profit community sector and local government, through councils, for services and projects, including specified capital projects.

    The updated Victorian Common Funding Agreement has been released as Version 2.0. Funding recipients should note the following key updates:

    • Amendments to specific core terms and conditions
    • A name change (it was formerly known as the Whole of Victorian Government Common Funding Agreement)
    • A revamped design to reflect current Victorian Government branding.

    The updated Victorian Common Funding Agreement has been developed following a review of the previous version and through extensive consultation with all departments, the not-for-profit community sector and the local government sector.

  • Organisations that benefit from the Victorian Common Funding Agreement

    The Common Funding Agreement is used with many types of organisations in the not-for-profit community sector and local government sector, including:

    • Community arts organisations
    • Community clubs
    • Community service and health providers
    • Cooperatives
    • Drug and alcohol services
    • Industry organisations
    • Kindergartens and preschools
    • Local councils
    • Neighbourhood houses and community centres
    • Peak bodies
    • Self help groups
    • Social enterprises
    • Sport and recreation clubs
    • Tourism groups
    • Aboriginal community controlled organisations
    • Volunteer groups.

    In some cases, departments may also use the Victorian Common Funding Agreement when funding individuals, as well as other organisations for non-core services funding such as:

    • Religious congregations
    • Schools (government and non-government)
    • Universities
    • Research institutes
    • TAFE colleges
    • Hospitals
    • Medical centres
    • Trade unions
    • Professional associations.
  • Service Agreement form of the Victorian Common Funding Agreement

    The service agreement used by the department and the Department of Education &Training (DET) is a form of the Victorian Common Funding Agreement, with shared features including:

    • Many core terms and conditions are the same in the service agreement form and standard form of the Victorian Common Funding Agreement
    • Clauses are written in plain English and presented in the same order 
    • Specific clause differences in the service agreement address the unique requirements of the services environment
    • A 4 year term (2015 to 2019) for terms and conditions with aligned review schedules
    • A similar ‘look and feel’.

    The service agreement terms and conditions contain a combination of the Victorian Common Funding Agreement core terms and conditions and approved additional and substituted clauses, that meet the unique needs of government funding of health, human and early childhood services.

    For more information about the approved additional and substituted clauses in the service agreement form of the Victorian Common Funding Agreement, see Service Agreement Information Kit.

  • Contacts

    For more information about Victorian Government departments, see the following websites or speak to your department funding contact:

    For general information about the Common Funding Agreement, email Common funding agreement project