Our Policy Priorities: Burden Reduction in Provincial Funding Agreements

ONN POLICY PRIORITIES 2019-2020

BURDEN REDUCTION IN PROVINCIAL FUNDING AGREEMENTS

Reducing red tape in transfer payment agreements so nonprofits can focus on outcomes

THE ISSUE

A high administrative burden costs government, nonprofits, and the communities we serve.

Funding agreements (called transfer payment agreements) with the Ontario government impose a significant administrative burden on nonprofits. There is a need to simplify and streamline application processes, agreements, budget templates, and reporting requirements – in a nutshell, to modernize the funding relationship to focus on service delivery outcomes.

POLICY STATEMENT

ONN advocates for reduced red tape in transfer payment agreements so that government and nonprofits can have a shared focus on accountability for outcomes. We advocate that new forms of funding (such as social impact bonds) must be rigorously evaluated to ensure that they contribute to cost-effective, sustainable programs that provide long-term benefits to participants and local communities while strengthening the nonprofit sector to continue to innovate. We advocate for governmental and non-governmental funders to provide open data, and to engage in administrative data sharing arrangements that provide valuable information on programs and services while respecting privacy.

NEXT STEPS

Advocate for the Ontario government to:

Work with the nonprofit sector to reduce red tape in transfer payment agreements so organizations can focus on delivering the vital programs people rely on and government can manage fewer agreements.

We propose three specific measures:

  • Reduce the number of transfer payment agreements (TPAs) by introducing umbrella agreements for nonprofits that deliver more than one service on behalf of government.
  • Apply across government lessons from Transfer Payment Administrative Modernization pilots that saved time and money for both government and nonprofits.
  • Reduce the number of IT systems (currently 40+) used across government to manage TPAs – or enable them to interface so information can be collected once and used many times.

Work with the Ontario nonprofit sector to:  

  • Provide input to the Ontario government’s red tape reduction efforts for nonprofits.
  • Explore the impact on nonprofits of funding models such as individualized funding, the lead agency model, and accountable care networks.