Community Non-Profit Organizations Secretariat

Framework established for multi-year funding for non-profit organizations (09/06/09)

NB 825

June 9, 2009

FREDERICTON (CNB) - A framework for multi-year funding agreements between government departments and non-profit organizations has been established by the Community Non-Profit Organizations Secretariat.

The announcement was made following the approval of the secretariat's 2009-10 budget estimates.

"In Delivering on the Blueprint, we pledged to create an effective partnership with the non-profit sector," said Brian Kenny, minister responsible for Community Non-Profit Organizations. "The establishment of this framework for multi-year funding agreements is evidence of our commitment to this partnership. Once in place, these agreements will offer stability to the non-profit sector."

The framework will be applied within eight government departments and one branch working with the non-profit sector: Education, Social Development, Natural Resources, Environment, Public Safety, Local Government, Health, and Wellness, Culture and Sport as well as the Women's Issues Branch. Several of these departments are revising their funding application process through the Red Tape Reduction Initiative to improve further their working relationships.

"Organizations will be able to plan and count on government support from year to year as they carry out their various projects and programs," Kenny said. "They will have more time to fulfil their organizational goals."

Funding will be based on three- to five-year agreements, depending on the circumstances of each non-profit group.

To qualify, a non-profit group must have received funding in the past and must demonstrate stability, financial accountability, responsible fiscal management and good governance. Audits or reviews may be requested from non-profit groups, and they must file basic annual reports with the departments involved.

"The secretariat has begun working with departments to prepare for applications by non-profit groups for multi-year funding," Kenny said. "It will be up to individual departments to decide which non-profit groups will benefit from long-term funding agreements."

Kenny said the new framework does not mean organizations will be receiving additional funding. Prior funding allocations will be used as the basis for negotiating the agreements. The funds will be allocated over the term of the agreements; funding will be allocated each year provided to the non-profit organizations that apply and meet the criteria set.

"I want to thank the secretariat's advisory committee for its collaboration in putting the framework together," Kenny said. "The committee provided valuable input for establishing the criteria and guidelines. The result is an important step forward in our efforts to support non-profit organizations."

09/06/09

MEDIA CONTACT: Judy Cole, communications, Community Non-Profit Organizations Secretariat, 506-444-3522.

09/06/09