Not-for-Profit Sector Procurement

The South Australian Government has approved a DPC Circular 044 - South Australian Funding Policy for the Not-for-Profit Sector (DPC Circular). This policy aims to support and strengthen collaborative partnerships between government and the not-for-profit sector. It provides a consistent approach to all aspects of SA Government funding, sets clear requirements for public authorities, reduces the administrative burden on NFPs and maintains their independence.

The DPC Circular comes into effect from 1 July 2017 with a transition period to 1 January 2018.

The DPC Circular is based on best practice principles for government and NFP funding relationships including

  • Robust planning and design
  • Collaboration and partnership
  • Proportionality
  • An outcomes orientation
  • Achieving value with relevant money
  • Governance and accountability
  • Probity and transparency
  • Community development principles

The State Procurement Board has updated its policies to incorporate the NFP principles.

A standard not-for-profit funded services agreement is currently being developed to simplify the contracting process for NFP funded services.

The Government has also approved a Standardised Indexation Policy for multi-year funding agreements between the Government and the NFP organisations commencing from 2017-18. There are a small number of specific exceptions to the policy, including services transitioning to the National Disability Insurance Scheme, services transitioning to the Commonwealth government under the aged care reform arrangements and indexation arrangements that have been negotiated as part of a competitive tender arrangement. Initially, an indexation rate of 2% for 2017-18 and 2018-19 and 2.5% for 2019-20 and 2020-21 will apply to all eligible agreements.

Further information on the Indexation Policy can be found here.