State announces five-year NFP contracts

The state government has today announced an updated community services policy, providing five-year contracts with the aim to give not-for-profit organisations greater funding security.

The policy has been developed after consultation with government, the sector, and the Supporting Communities Forum, and recommends minimum five-year contracts for not-for-profit groups in Western Australia.

It will focus on the experience and knowledge of people receiving and delivering services.

Communities Minister Simone McGurk said the policy would support funding outcomes not output.

“At the moment the state government contributes $1.5 billion to the community sector across the state, and this policy means that, as a default, we’ll have five-year funding tenure for those contracts,” she said.

“We’ll make sure that we’re working in partnership with community organisations when we are developing criteria, it’s not just the state government imposing those criteria.”

Ms McGurk said the Department of Communities alone would disburse over $220 million to not for profits in 2018-19, and the updated policy would provide a framework to support the sector.

Finance Minister Ben Wyatt said the policy would provide surety for service delivery organisations, allowing better and more efficient services in the long term.

“This announcement today brings together an extensive period of consultation with the not-for-profit sector about the best ways we can help them provide the best outcomes and also ensure that taxpayers receive the best value for money from their contribution,” he said.