New guide for funders

Finance | 1 Jun 2006

The Treasury has published a document designed to act as a guide for all funders of charities. It has been designed to help funding bodies, including government departments, to improve the funding process and distribute money efficiently.

According to the Treasury, the third sector will benefit directly from the document as it will give an insight to the funders' considerations, which will help with ways of approaching them for funding. According to the Treasury: "The government realises that getting the funding relationship right is increasingly important if the financial stability of service delivery organisations is to be assured."

The guidance has had a mixed review from UK director of corporate resources at Barnardo's, Ian Theodoreson: "Particularly helpful is the encouragement to departments to enter into longer term contracts. Contracts of three years or less are incredibly inefficient and costly for both provider and commissioner and we should be looking in many instances for a minimum of five years.The guidance is a helpful reiteration of policies and guidance that is already in place. However, unless government is prepared to make the money available to back up these laudable commitments the guidance is hollow."

Directory: Barnardo's | HM Revenue & Customs (HMRC)

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