A
Code
of
Good
Practice
on
Funding
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Building
on
An
Accord
Between
the
Government
of
Canada
and
the
Voluntary
Sector
Developed
by
the
Joint
Accord
Table
of
the
Voluntary
Sector
Initiative
October
2002
Table
of
Contents
- Why
a
Code?
- Principles
Underpinning
the
Code
- Voluntary
Sector
Financing
- Government
of
Canada
Support
of
the
Voluntary
Sector
- Good
Funding
Practices:
The
Code
in
Action
- Moving
the
Code
Forward
Appendices
1.
WHY
A
CODE?
Signed
in
December
2001,
An
Accord
Between
the
Government
of
Canada
and
the
Voluntary
Sector
describes
the
key
elements
of
a
strengthened
relationship
between
the
two
sectors.
It
sets
out
common
values,
principles
and
commitments
that
will
shape
the
sectors'
future
practices
as
they
work
together
for
the
benefit
of
all
Canadians.
This
Code
of
Good
Practice
on
Funding
fulfils
the
Accord's
commitment
to
take
measures
to
put
its
provisions
into
action.
As
such,
the
Code
is
a
tool
for
identifying
practices
related
to
the
funding
aspect
of
the
sectors'
relationship.
By
using
these
good
practices,
both
sectors
are
committed
to
building
that
relationship,
thereby
strengthening
their
ability
to
better
serve
Canadians.
1.1
Link
to
the
Accord
This
Code
of
Good
Practice
on
Funding
has
been
developed
in
accordance
with
the
provision
in
the
Accord
stipulating
that
the
Government
of
Canada
and
the
voluntary
sector
will
develop,
in
a
timely
fashion:
codes
or
standards
of
good
practice
to
help
guide
interactions
between
government
departments
and
voluntary
sector
organizations
on
aspects
of
the
relationship
such
as
policy
dialogue,
funding,
and
other
issues
as
identified.
As
summarized
below,
the
Accord
also
contains
specific
references
to
the
issue
of
funding:
- Recognize
and
consider
the
implications
of
its
legislation,
regulations,
policies
and
programs
on
voluntary
sector
organizations
including
the
importance
of
funding
policies
and
practices
for
the
further
development
of
the
relationship
and
the
strengthening
of
the
voluntary
sector’s
capacity;
(Government
of
Canada
Commitments)
and
- Advocacy
is
inherent
to
debate
and
change
in
a
democratic
society
and
...
should
not
affect
any
funding
relationship
that
might
exist.
(Principles:
Independence)
In
addition,
the
Code
builds
on
the
values
of
democracy,
active
citizenship,
equality,
diversity,
inclusion
and
social
justice,
and
the
principles
of
independence,
interdependence,
dialogue,
co-operation
and
collaboration,
and
accounting
to
Canadians,
which
are
the
basis
for
the
Accord.
1.2
Purpose
of
the
Code
The
purpose
of
this
Code
is
to
guide
interactions
between
the
Government
of
Canada
and
the
voluntary
sector
on
funding
policies
and
practices.
The
Code
is
grounded
in
each
sector’s
recognition
of
its
responsibility
to
be
accountable
to
Canadians
and
the
importance
of
sustainable
capacity
to
enable
voluntary
organizations
to
serve
Canadians.
Voluntary
sector
organizations
have
a
mandate
to
identify
and
respond
to
community
needs
by
providing
programs,
services
and
support
to
improve
people’s
lives.
They
provide
collective
voices
and
involvement
in
issues
of
common
concern.
As
diverse
as
the
Canadian
population
itself,
the
voluntary
sector
includes
an
estimated
180,000
incorporated
non-profit
organizations,
of
which
80,000
are
registered
charities.
These
organizations
differ
enormously
in
their
causes
and
constituencies,
in
size
and
resources,
and
in
the
extent
to
which
they
are
run
by
volunteers
and
paid
professional
staff.
They
range
from
small
community-based
groups
to
large
national
and
international
organizations.
Working
independently,
voluntary
sector
organizations
determine
their
own
priorities
and
manage
their
own
affairs.
Voluntary
sector
organizations
carry
out
important
work
in
many
areas,
including
sports
and
recreation,
arts
and
culture,
health,
religion
and
environmental
protection.
Through
their
staff
and
volunteers,
these
organizations
work
daily
in
communities
across
Canada,
identifying
needs
and
providing
effective
services
to
improve
people’s
lives
and
support
the
well-being
of
communities.
In
addition
to
its
support
role,
the
voluntary
sector
contributes
significantly
to
the
Canadian
economy.
(See
Appendix
1
for
a
description
of
the
voluntary
sector
and
Appendix
2
for
an
overview
of
the
sector’s
contributions.)
The
Government
of
Canada
has
a
mandate
to
use
public
funds
for
programs
and
services
that
improve
the
quality
of
life
of
all
Canadians
(see
Appendix
3
for
a
summary
of
the
federal
government’s
contributions).
Almost
every
aspect
of
Canadian
life
is
affected
in
some
way
by
the
Government
of
Canada
and,
each
day,
millions
of
Canadians
rely
on
the
essential
services
it
provides.
The
federal
government
also
plays
an
important
role
in
developing
Canadian
and
global
economies,
and
in
sustaining
relations
with
other
countries
and
multilateral
organizations.
Moreover,
the
federal
government
makes
laws
and
regulations
that
affect
many
aspects
of
Canadians’
daily
lives.
This
Code
examines
the
current
funding
policies
and
practices
between
the
Government
of
Canada
and
the
voluntary
sector,
and
identifies
ways
to
strengthen
these
arrangements
over
time.
Expanding
on
prior
work
by
the
Treasury
Board
Secretariat
to
identify
how
the
Government
of
Canada’s
funding
policies
and
practices
could
be
improved
to
strengthen
its
relationship
with
the
voluntary
sector1,
the
Code
is
also
informed
by
the
input
of
the
voluntary
sector’s
Working
Group
on
Financing.
The
contributions
of
these
bodies
provide
a
strong
foundation
for
the
Code.
[1.
As
part
of
the
Voluntary
Sector
Initiative,
the
Voluntary
Sector
Project
Office
(VSPO)
in
the
Treasury
Board
Secretariat
was
mandated
to
identify
and
propose
solutions
to
impediments
in
federal
funding
practices
and
policies
in
relation
to
the
voluntary
sector,
to
provide
greater
consistency
across
departments
and
to
improve
the
government's
ability
to
strengthen
sector
capacity.
This
work
involved
extensive
consultations
with
the
voluntary
sector
and
across
government,
and
resulted
in
the
Federal
Strategy
on
Funding
Practices
and
Policies,
a
federal
funding
framework
to
improve
administrative
practices
and
help
federal
departments
build
the
capacity
of
sector
partners.
A
key
element
of
the
Strategy
is
a
Guide
to
Improving
Funding
Practices
Between
the
Federal
Government
and
the
Voluntary
Sector,
which
has
now
been
fully
integrated
into
this
jointly
developed
Code
and
is
superseded
by
it.]
The
Code
is
a
guide
to
good
practice
and
a
practical
tool
for
implementing
the
principles
set
out
in
the
Accord.
It
takes
into
account
the
environment
in
which
both
the
voluntary
sector
and
the
Government
of
Canada
work,
as
well
as
the
values
and
other
important
considerations
that
affect
the
funding
aspect
of
their
relationship.
In
the
longer
term,
improved
funding
policies
and
practices
should
achieve
the
following
positive
outcomes:
- enhanced
ability
for
each
sector
to
carry
out
its
mandate;
- greater
transparency,
consistency
and
understanding
between
both
sectors
- clear
and
balanced
accountability
in
the
funding
process;
- good
funding
policies
and
practices
that
are
applied
widely;
and
- strengthened
sustainable
capacity
of
voluntary
sector
organizations.
Ultimately,
the
Code’s
power
to
influence
and
change
behaviour
will
come
from
its
endorsement
by
both
sectors,
as
well
as
through
continuing
discussion
between
the
federal
government
and
the
voluntary
sector.
1.3
Scope
and
Application
of
the
Code
This
Code,
which
builds
on
current
funding
policies
and
practices,
includes
specific
recommendations
to
improve
direct
funding
practices.
Consistent
with
the
financial
management
framework2
of
the
Government
of
Canada,
it
applies
to
existing
and
future
funding
arrangements
between
federal
government
departments
and
agencies
(including
their
regional
organizations)
and
the
voluntary
sector
organizations
they
work
with
at
both
the
national
and
local
levels.
[2.
Includes
Financial
Administration
Act,
and
policies
on
transfer
payments,
contracting,
procurement,
evaluation,
expenditure
management
and
risk
management
as
well
as
international
trade
agreements.]
Both
sectors
are
committed
to
the
full
application
of
the
Code
over
time,
recognizing
that
there
will
be
variations
in
the
pace
at
which
this
is
achieved.
Many
departments,
agencies
and
voluntary
sector
organizations
are
already
using
many
of
the
practices
specified
in
the
Code.
Others
are
at
different
stages.
All
share
a
commitment
to
be
guided
by
these
good
practices.
The
Code
is
expected
to
evolve
based
on
experience
with
its
use.
Moreover,
it
will
be
subject
to
regular
review
at
meetings
between
Ministers
and
sector
representatives,
as
set
out
in
the
Accord.
In
addition
to
direct
funding,
the
federal
government
also
supports
the
voluntary
sector
indirectly
by
providing
tax
relief
to
individual
Canadians
and
corporations
for
donations
made
to
registered
charities.
However,
tax
treatment
of
donations
as
well
as
levels
of
funding,
and
partnership
with
other
sectors
and
other
levels
of
government
fall
outside
the
scope
of
this
Code
(see
Appendix
3
for
more
information).
2.
PRINCIPLES
UNDERPINNING
THE
CODE
Building
on
the
Accord,
this
Code
is
based
on
the
following
shared
principles:
The
Voluntary
Sector's
Value
A
healthy
and
active
voluntary
sector
plays
an
important
role
in
helping
the
federal
government
achieve
its
public
policy
objectives.
By
its
very
nature
and
particularly
because
of
its
connection
to
communities,
the
voluntary
sector
brings
a
special
perspective
and
considerable
value
to
its
activities,
including
those
it
undertakes
with
the
Government
of
Canada.
Strengthened
Sustainable
Capacity
Sustainable
capacity
consists
of
resources,
expertise
and
infrastructure
that
allow
organizations
to
manage
themselves
and
carry
out
their
mandate
over
time.
Maintaining
this
capacity
is
critical
for
organizations
to
continue
serving
their
clients,
including
undertaking
work
in
partnership
with
federal
government
departments
and
agencies.
The
Government
of
Canada
and
the
voluntary
sector
recognize
the
importance
of
sustainable
capacity
for
organizations
and
how
funding
policies
and
practices
can
affect
that
capacity.
This
capacity
requires
resources
and
support
from
a
variety
of
sources,
including
the
federal
government.
Co-operation
and
Collaboration
A
close
working
relationship
between
the
voluntary
sector
and
the
Government
of
Canada
will
foster
the
co-operation
and
collaboration
needed
to
maximize
their
complementary
skills,
expertise
and
experience.
Innovation
The
voluntary
sector
and
the
Government
of
Canada
encourage
and
support
innovation
in
communities
across
the
country.
The
sectors
will
collaborate
to
leverage
their
strengths
and
expertise,
enabling
them
to
explore
new
and
creative
ways
of
responding
to
community
needs.
Through
its
strong
connection
to
community,
the
voluntary
sector
is
well
placed
to
identify
emerging
priorities
and
offer
innovative
proposals
for
change.
For
its
part,
the
federal
government
can
play
a
role
by
developing
funding
practices
that
encourage
innovative
policies
and
programs.
Diversity
and
Equitable
Access
The
voluntary
sector
derives
much
of
its
strength
from
the
diversity
of
its
people,
organizations
and
sources
of
support.
Reflecting
the
face
of
Canada,
the
people
who
work
and
volunteer
in
the
sector
are
drawn
from
a
range
of
backgrounds
and
offer
a
wealth
of
unique
abilities
and
experiences.
The
Government
of
Canada
and
the
voluntary
sector
will
work
together
to
ensure
that
funding
policies
and
practices
take
account
of
the
specific
needs,
interests
and
diversity
of
the
sector,
including,
for
example,
groups
representing
women,
visible
minorities,
persons
with
disabilities,
Aboriginal
people,
linguistic
minorities,
sexual
orientation,
remote,
rural
and
northern
communities,
and
other
sectors,
so
that
such
groups
do
not
face
even
greater
challenges
in
accessing
federal
government
funding
and/or
programs
and
services.
As
well,
policies
and
practices
must
respect
the
provisions
of
existing
legislation,
including
the
Canadian
Charter
of
Rights
and
Freedoms,
the
Canadian
Human
Rights
Act,
the
Employment
Equity
Act,
the
Official
Languages
Act,
the
Multiculturalism
Act,
the
United
Nations
Universal
Declaration
of
Human
Rights
and
other
international
conventions
to
which
Canada
is
a
signatory.
Policies
must
also
respect
all
amendments,
extensions
or
replacements
to
these
laws
and
policies.
Accountability
Accountability
is
the
requirement
to
explain
and
accept
responsibility
for
carrying
out
an
assigned
mandate
in
light
of
agreed-upon
expectations.
The
two
sectors
will
fulfil
their
respective
accountabilities
as
described
below:
- Voluntary
sector
organizations,
through
their
boards
of
directors,
are
accountable
to
multiple
constituencies,
including
funders,
donors,
clients,
members,
volunteers,
staff,
government
and
the
general
public.
When
they
accept
public
funds,
as
with
any
other
funds,
they
are
accountable
for
how
these
funds
are
used.
Accountability
requirements
differ
depending
on
the
type,
purpose,
duration
and
amount
of
funding
and
should
be
linked
to
realistic
and
measurable
outcomes.
- The
Government
of
Canada
is
accountable
to
Parliament
and
the
Canadian
people
for
the
use
of
public
funds.
It
is
guided
by
Results
for
Canadians
(a
management
framework
for
the
federal
government)
and
the
financial
management
framework
of
the
Government
of
Canada.
The
Office
of
the
Auditor
General
of
Canada
also
plays
an
important
role
in
monitoring
accountability
for
the
expenditure
of
public
funds.
Transparency
and
Consistency
More
consistent
application
of
funding
policies
and
practices
across
the
Government
of
Canada
and
the
voluntary
sector
as
a
whole
will
lead,
over
time,
to
more
harmonized
and
streamlined
processes
that
will
benefit
both
sectors.
Both
sectors
require
clear
and
timely
information
on
all
aspects
of
funding
processes
in
an
open
and
transparent
manner.
Efficiency
and
Effectiveness
The
Government
of
Canada
and
the
voluntary
sector
recognize
the
importance
of
efficient
and
effective
allocation
of
funds.
Application,
reporting
and
monitoring
requirements
must
also
be
manageable
and
realistic.
3.
VOLUNTARY
SECTOR
FINANCING
The
voluntary
sector
is
a
significant
economic
force
in
Canada3
:
- The
sector
employs
1.3
million
people,
about
9
percent
of
the
workforce.
- The
contribution
of
this
workforce
is
increased
by
the
6.5
million
volunteers
who
dedicate
more
than
one
billion
hours
each
year
through
the
voluntary
sector
organizations
in
their
communities
-
the
equivalent
of
580,000
full-time
jobs.
- The
voluntary
sector
generates
about
$90
billion
in
annual
revenues
and
has
$109
billion
in
assets.
[3.
See
Appendix
2
for
more
information
on
the
contributions
of
the
voluntary
sector.]
A
strong,
resilient
voluntary
sector
draws
its
support
from
a
variety
of
sources,
including:
- 22
million
Canadians
who
make
financial
and/or
in-kind
donations
totalling
almost
$5
billion
to
help
organizations
achieve
their
missions;
- millions
of
individuals
who
volunteer
their
expertise
and
labour;
- governments,
foundations,
charitable
funding
organizations
(e.g.,
United
Ways-Centraides)
and
corporations
that
provide
financial
and
in-kind
resources;
and
- funds
raised
by
voluntary
sector
organizations
through
service
fees,
product
sales,
investment
income
and
other
charitable
fund-raising
activities.
In
response
to
changing
government
priorities
and
available
funding
over
the
past
decade
or
so,
voluntary
sector
organizations
have
explored
opportunities
to
further
diversify
their
funding
sources.
The
private
sector:
Corporations
were
encouraged
to
increase
their
donations
and
they
did
so.
Although
the
private
sector
plays
an
important
role
in
voluntary
sector
funding,
it
has
not
been
able
to
offset
reduced
government
funding,
which
remains
the
sector's
largest
source
of
revenue.
Moreover,
the
private
sector
provides
primarily
one-time
or
short-term
funding;
this
is
problematic
as
voluntary
sector
organizations
require
ongoing
funding.
Individual
donors:
Individual
donations
can
be
a
consistent
and
significant
source
of
revenue,
but
most
smaller
voluntary
sector
organizations
do
not
have
the
broad
public
profile
needed
to
raise
significant
funds
from
individuals.
In
recent
years,
the
government
has
increased
tax
assistance
for
charitable
donations
(mainly
in
1996,
1997
and
2001)
resulting
in
an
increase
in
average
donations
reported
by
individuals
on
tax
returns.
Foundations,
community
funds
and
charitable
funding
organizations:
Voluntary
sector
organizations
regard
these
flexible
and
innovative
funding
sources
as
essential
elements
of
their
long-term
sustainability.
Governments:
Federal,
provincial,
territorial
and
local
governments
together
provide
more
than
half
of
the
voluntary
sector's
total
annual
revenues,
with
the
large
majority
of
funding
(more
than
85
percent)
coming
from
the
provincial
and
territorial
levels
of
government.
4.
GOVERNMENT
OF
CANADA
SUPPORT
OF
THE
VOLUNTARY
SECTOR
Although
direct
federal
funding
is
not
the
largest
source
of
public
funds
to
the
voluntary
sector
(provincial,
territorial
and
local
government
funding
are
considerably
larger),
it
is
nonetheless
significant.
As
discussed
in
Section
1.3,
the
Government
of
Canada's
provision
of
tax
relief
also
has
a
significant
impact
on
the
voluntary
sector.4
[4.
See
Appendix
4
for
more
information
on
the
contributions
of
the
Government
of
Canada.]
The
Government
of
Canada
has
a
clear
interest
in
ensuring
a
healthy
and
active
voluntary
sector
in
communities
across
the
country
so
that
they
can
work
together
for
the
well-being
of
Canadians.
Funding
policies
and
practices
must
encourage
this
by
removing
any
barriers
to
an
effective
working
relationship.
4.1
Purposes/Activities
for
Which
Direct
Funding
is
Provided
Federal
government
departments
and
agencies
make
different
types
of
direct
funding
available
to
voluntary
sector
organizations
for
a
range
of
purposes
and
activities5
to
ensure
that
government
policy
objectives
are
met
in
a
flexible
and
appropriate
manner.
However,
not
all
types
of
funding
are
provided
by
every
department
and
agency.
Each
federal
department
and
agency
determines
the
type(s)
of
funding
best
suited
to
fulfil
its
mandate
and
policy
objectives.
Departments
and
agencies
are
guided
by
their
individual
policy
and
program
priorities
as
well
as
by
the
terms
and
conditions
of
the
specific
funding
programs
they
provide.
Although
most
federal
government
funding
is
allocated
for
a
one-year
period,
some
departments
and
agencies
also
provide
funding
on
a
multi-year
basis.
All
funding
agreements
are
subject
to
the
annual
appropriation
of
funds
by
Parliament.
[5.
Descriptions
of
each
of
these
funded
purposes/activities
can
be
found
in
Appendix
4.]
In
considering
their
mandate,
federal
departments
and
agencies
may
make
funding
available
for
various
purposes
and
activities,
including:
- program
and
service
delivery;
- strengthened
sustainable
capacity;
- strategic
investment;
- alliances
and
partnerships;
- policy
dialogue;
- advocacy;
- research;
- innovation;
and
- capital
expenditures.
4.2
Direct
Funding
Mechanisms
The
federal
government
provides
the
vast
majority
of
its
direct
funding
to
the
voluntary
sector
through
four
main
types
of
funding
mechanisms6,
in
accordance
with
the
Treasury
Board
of
Canada's
Policy
on
Transfer
Payments
and
Contracting
Policy:
- contributions;
- grants;
- contracts;
and
- other
transfer
payments.
[6.
The
four
funding
mechanisms
are
described
more
fully
in
Appendix
5.]
Of
these,
most
funding
is
provided
through
the
first
two
mechanisms
(i.e.,
contributions
and
grants).
Some
funding
is
also
provided
through
contracts
for
specific
professional
services.
The
last
mechanism
is
restricted
to
special
and
specifically
defined
arrangements,
for
example,
transfer
payments
to
other
levels
of
government.
Funding
arrangements,
including
their
duration,
should
reflect
the
nature
and
scale
of
the
issue
to
be
addressed.
For
example,
chronic
or
systemic
social
issues
are
not
likely
to
be
solved
through
short-term
project
funding.
Project
funding
has
a
place
in
the
overall
funding
mix
for
problems
that
are
expected
to
be
solved
in
the
short-term
or
for
time-limited
activities.
However,
many
issues
(e.g.,
racism,
climate
change,
HIV/AIDS)
are
longer
term
in
nature
and
may
require
long-term
funding
commitments,
as
well
as
collaboration
and
partnership
activities,
to
make
real
progress.
4.3
Other
Government
of
Canada
Support
of
the
Voluntary
Sector
In
addition
to
providing
voluntary
sector
organizations
with
direct
funding
as
mentioned
above,
federal
departments
and
agencies
can
provide
access
to
other
support
and
resources.
Such
non-monetary
contributions
are
made
at
the
discretion
of
individual
departments
and
agencies
and
may
need
to
be
charged
against
a
department's
appropriations.
Although
awareness
of
them
varies,
the
types
of
non-monetary
contributions
listed
below
can
be
found
in
some
federal
departments
and
agencies.
As
specific
circumstances
will
determine
the
details
of
any
funding
arrangement,
departments
and
agencies
may
adapt
and/or
build
on
these
examples.
Key
determining
factors
are
the
availability
of
resources,
and
congruence
with
federal
government
priorities
and
the
department’s
or
agency’s
specific
strategic
aims
and
policy
priorities.
Departments
and
agencies
whose
current
terms
and
conditions
do
not
permit
them
to
provide
these
types
of
support
should
be
aware
that
they
can
seek
approval
to
amend
those
terms
and
conditions
to
permit
the
following
activities:
- In-kind
contributions,
such
as:
- access
to/use
of
hard
and
soft
assets
(e.g.,
libraries,
meeting
space,
video
teleconferencing
equipment
and
facilities);
- recyclable
equipment
(e.g.,
office
furniture,
computer
hardware);
- access
to
training
opportunities
(e.g.,
professional
development);
- training
for
voluntary
sector
organizations
on
Government
of
Canada
funding
practices,
mechanisms,
processes
and
outcomes;
and
- federal
government/voluntary
sector
personnel
interchanges.
- Differential
pricing:
- consideration/recognition
of
many
voluntary
sector
organizations’
reduced
capacity
to
pay
for
participation
in
conferences
or
training
programs
(note:
support
of
this
kind
can
also
be
provided
through
direct
funding
in
the
budget
of
an
eligible
initiative);
and
- access
to
Government
of
Canada
bulk
pricing
rates,
in
the
case
where
a
supplier
has
agreed
to
extend
preferential
rates
to
a
voluntary
sector
organization.
5.
GOOD
FUNDING
PRACTICES:
THE
CODE
IN
ACTION
Building
on
the
principles
presented
in
Section
2
of
this
Code,
the
funding
practices
outlined
below
identify
specific
measures
to
improve
the
flexibility,
responsiveness
and
consistency
of
funding
arrangements,
taking
into
account
the
realities
of
the
two
sectors.
Many
of
these
practices
are
already
in
place
in
some
federal
departments
and
agencies
and
in
the
voluntary
sector.
Where
appropriate,
these
practices
could
be
applied
more
broadly
in
both
sectors.
A
living
document,
the
Code
will
evolve
as
new
practices
are
identified
and
improved
upon.
Progress
will
be
achieved
when
this
process
of
continuous
improvement,
based
on
shared
principles
and
supported
by
ongoing
dialogue,
becomes
common
practice.
5.1
Voluntary
Sector
Responsibilities
for
Funding
Practices
Building
on
the
Code’s
shared
principles,
the
following
good
practices
by
the
voluntary
sector
will
help
guide
interactions
between
the
voluntary
sector
and
the
federal
government.
The
voluntary
sector
commits
to:
5.1.1
The
Voluntary
Sector’s
Value
- demonstrate
and
communicate
value
in
the
delivery
of
programs
and
services;
- inform
federal
government
departments
and
agencies
of
areas
in
which
the
voluntary
sector
possesses
particular
expertise
and
knowledge;
and
- stay
informed
about
federal
government
policy
and
program
areas
that
are
relevant
to
their
areas
of
operation.
5.1.2
Strengthened
Sustainable
Capacity
- invest
in
organizational
and
human
resource
development
management;
- develop
its
funding
sources
and
diversify
them
to
the
extent
possible;
- demonstrate
through
the
application
of
equitable
and
efficient
operating
policies
and
practices
its
readiness
to
work
with
government;
- explore
with
government
funders
the
possibility
of
using
multi-year
funding
agreements
and
identify
the
potential
impact
of
such
agreements
on
organizations’
stability
and
long-term
planning
processes;
and
- identify
and
include
infrastructure-type
costs,
such
as
information
management
and
information
technology,
memberships,
facilities,
human
resources
and
financial
management
obligations
(e.g.,
audits),
when
developing
budget
estimates.
5.1.3
Co-operation
and
Collaboration
- acknowledge
funding
sources,
including
the
Government
of
Canada,
in
promotional
material;
-
use
its
extensive
networks
to
communicate
information
and
co-ordinate
among
organizations
as
appropriate
to
avoid
duplication;
- take
steps
to
stay
current
with
existing
government
planning
tools
such
as
program
expenditure
priorities
and
plans,
contribute
to
these
as
required,
and
work
to
improve
the
effectiveness
of
the
sector’s
related
planning
tools
and
practices;
and
- work
with
government
funders
to
identify
ways
to
make
programs
more
responsive
to
local
needs.
5.1.4
Innovation
- identify
innovative
funding
pratices
to
improve
existing
program
delivery;
- engage
with
federal
departments
and
agencies
in
dialogue
about
innovative
funding
approaches
to
address
emerging
community
issues
and
needs;
and
- where
appropriate,
examine
opportunities
to
share
innovative
approaches
with
other
voluntary
sector
organizations
and
government
funders.
5.1.5
Diversity
and
Equitable
Access
- implement
policies
to
ensure
equality
of
opportunity,
both
in
employment
practices
and
service
provision;
and
- publicize
government
or
other
funding
policies
broadly
and
share
that
information
across
the
diverse
sector.
5.1.6
Accountability
- ensure
sound
financial
management,
including
accounting
procedures
that
are
in
accordance
with
generally
accepted
accounting
principles;
- provide
effective
board
governance;
- adhere
to
ethical
fund-raising
practices;
-
ensure
that
sufficient
monitoring,
internal
management
and
client
and
funder
accountability
systems
are
in
place;
and
-
ensure
that
organizations
have
the
level
of
financial
expertise
needed
to
fulfil
all
their
financial
management,
recording
and
reporting
obligations.
5.1.7
Transparency
and
Consistency
- ensure
openness
and
transparency
of
activities
and
financial
records,
including
management
and
overhead
costs,
and
volunteer
involvement;
-
provide
essential
financial
information
and
notify
the
federal
government
of
any
changes,
delays
or
irregularities
related
to
funding,
in
a
timely
manner;
and
-
co-operate
with
any
external
reviews
of
funding
that
may
be
required,
including
monitoring,
evaluation
and/or
audit.
5.1.8
Efficiency
and
Effectiveness
- ensure
that
systems
are
in
place
to
monitor
and
evaluate
activities
against
agreed-upon
objectives;
- ensure
the
timeliness
of
its
responses
to
accountability
requirements;
- plan
program
investments
strategically;
- periodically
evaluate
(in
consultation
with
users)
its
use
of
public
funds
to
ensure
it
meets
“value
for
money”
criteria;
and
- work
with
government
funders,
where
appropriate,
to
develop
user-friendly
forms
and
reporting
requirements.
5.2
Government
of
Canada
Responsibilities
for
Funding
Practices
Building
on
the
Code’s
shared
principles,
these
good
practices
by
the
Government
of
Canada
will
help
guide
interactions
between
government
departments
and
agencies
and
voluntary
sector
organizations.
The
Government
of
Canada
commits
to:
5.2.1
The
Voluntary
Sector’s
Value
- communicate
with
voluntary
sector
organizations
that
may
be
well
qualified
to
compete
for
research
funding
alongside
the
private
sector
and
universities;
- include
as
one
criterion
the
“particular
value”
that
voluntary
sector
organizations
bring
to
specific
activities
they
undertake
with
the
Government
of
Canada
(e.g.,
access
to
networks,
knowledge
of
specific
issues,
expertise
in
service
delivery,
ability
to
promote
equality
and
social
inclusion)
when
considering
a
funding
proposal;
- include
a
legitimate
proportion
of
the
cost
of
providing
this
particular
value
as
part
of
the
budget
for
a
funded
activity
when
it
is
integral
to
the
project’s
successful
implementation;
and
- establish
opportunities
for
voluntary
sector
organizations
to
access
federal
contracts
through
means
such
as:
- the
creation
of
standing
offer
lists
of
voluntary
sector
organizations
that
have
been
“pre-qualified”;
and
- the
development
of
service
registries
(i.e.,
listings
of
voluntary
sector
organizations
with
a
particular
expertise).
5.2.2
Strengthened
Sustainable
Capacity
- use
multi-year
funding
agreements
and
develop
and
implement
mechanisms
to
facilitate
their
use,
in
appropriate
circumstances,
in
order
to
enhance
organizations’
stability
and
capacity
for
longer-term
planning;
- allow
a
reasonable
and
flexible
transition
period
when
major
changes
are
made
to
a
funded
activity
already
underway;
- use
flexible
arrangements
available
to
departments
and
agencies
in
accordance
with
the
Treasury
Board
of
Canada's
Policy
on
Transfer
Payments
(e.g.,
making
advance
or
installment
payments
to
meet
program
objectives,
including
the
carry-forward
of
nominal
unused
advances
over
year-end,
not
exceeding
expected
expenditures
for
the
month
of
April);
- make
payments
according
to
an
agreed-upon
timetable
and
consider
both
the
size
and
nature
of
the
proposed
funding
and
the
applicant
organization;
- in
proposed
budgets
for
programs
or
projects
to
be
delivered
by
voluntary
sector
organizations,
include
among
allowable
expenditures
infrastructure-type
costs
(e.g.,
information
management
and
information
technology,
memberships,
facilities,
human
resources
and
financial
management
obligations
(e.g.,
audits))
that
are
integral
to
successfully
implementing
eligible
initiatives;
- manage
funds
effectively
to
eliminate
problems
caused
by
the
distribution
of
a
concentrated
amount
of
funding
to
organizations
at
the
end
of
the
fiscal
year;
and
- use
the
Strategic
Investment
Approach
to
strengthen
the
capacity
of
voluntary
sector
organizations
to
collaborate
over
the
longer
term
with
government
on
key
policy
and
program
goals
of
mutual
interest
(see
Appendix
6).
5.2.3
Co-operation
and
Collaboration
- solicit
and
consider
voluntary
sector
views
on
better
ways
to
meet
new
or
existing
needs
through
funding
programs;
- provide
voluntary
sector
organizations
with
access
to
useful
planning
tools
and
routinely
share
information
on
departmental,
agency
and
government-wide
priorities
and
plans
(for
policies,
programs
and
research),
to
facilitate
long-term
planning
in
voluntary
sector
organizations;
and
- be
flexible
in
implementing
new
programs
that
address
broad
federal
priorities
and,
where
appropriate,
tailor
these
programs
to
meet
local
needs.
5.2.4
Innovation
- identify
and
bring
forward
emerging
issues
with
respect
to
funding
policies
and
practices,
and
use
new
funding
approaches
to
address
community
needs;
- recognize
the
potential
of
voluntary
sector
organizations
as
a
source
for
innovations
that
could
be
used
to
advance
departmental
or
agency
or
program
priorities;
and
- recognize
the
benefit
of
targeting
a
portion
of
new
program
funding
for
innovation
at
the
design
stage,
incorporating
appropriate
risk
assessment,
risk
management
and
accountability
measures.
5.2.5
Diversity
and
Equitable
Access
- recognize
the
potential
of
diverse
community
organizations
(e.g.,
faith,
cultural)
to
contribute
to
program
development
and
delivery
of
services,
and
demonstrate
sensitivity
to
cultural
differences;
and
- make
an
effort
to
provide
equitable
access
to
funded
programs
for
organizations
that
may
face
greater
challenges
in
accessing
federal
funding
(e.g.,
groups
representing
women,
visible
minorities,
persons
with
disabilities,
Aboriginal
people,
linguistic
minorities,
sexual
orientation,
and
remote,
rural
and
northern
communities)
by:
- making
information
available
on
existing
and
new
funding
programs,
including
application
procedures,
in
a
variety
of
easily
accessible
formats
(e.g.,
through
outreach
activities,
the
press,
umbrella
and
intermediary
organizations,
voluntary
sector
networks,
directories,
newsletters
and
the
Internet,
and
in
formats
accessible
to
persons
with
disabilities);
- writing
application
forms
in
plain
language
to
increase
clarity
and
reduce
complexity;
and
- ensuring
that
eligibility
criteria
and
funding
practices
do
not
create
unintended
barriers
for
smaller
organizations
with
limited
resources
or
without
a
federal
“track
record”.
5.2.6
Accountability
- make
application
and
accountability
standards
and
procedures
flexible
enough
to
accommodate
a
variety
of
approaches
and
the
limited
capacity
of
smaller
organizations,
while
still
ensuring
effective
protection
of,
and
proper
accountability
for,
public
money;
- take
into
account
monitoring
procedures
already
agreed
to
by
a
voluntary
sector
organization’s
other
funders,
as
well
as
any
quality
assurance
system
introduced
by
the
organization,
when
discussing
the
content,
quality
and
format
of
federal
information
needs;
- agree
on
well-defined,
measurable
results
and
clear
roles
and
responsibilities;
and
- ensure
mutual
respect
for
diversity
and
recognize
that
different
community
groups
can
manage
their
resources
in
different
ways
and
still
meet
the
federal
government’s
accountability
requirements.
5.2.7
Transparency
and
Consistency
- develop
a
harmonized
process
across
the
Government
of
Canada
to
facilitate
the
joint
funding
of
projects
when
several
departments
or
agencies
are
working
collaboratively
on
the
same
or
several
initiatives
with
a
common
client;
- ensure
a
clear
understanding
and
consistent
application
of
the
Treasury
Board
of
Canada’s
funding
policies
across
the
federal
government
(e.g.,
transfer
payments,
contracting,
risk
management)
and
make
them
known
to
the
voluntary
sector
organizations
they
work
with;
- clearly
state
the
objectives
of
funding
programs
and
their
eligibility
criteria,
and
ensure
that
application
forms
are
understandable
and
concise;
- use
common
elements
in
application
and
reporting
forms
across
the
federal
government;
- ensure
that
all
applicants
receive
precise
information
concerning
the
application
process
and
the
stages
and
timing
of
decision-making;
- establish
realistic
planning
timeframes,
service
standards
for
funding,
and
performance
commitments
of
departments
and
agencies
for
providing
full
information
in
a
timely
manner;
and
- identify
a
point
of
contact
for
each
funding
program
and
include
it
in
the
application
