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 consistency of 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.