A survey of voluntary sector organizations was undertaken as part of a larger collaborative problem-solving initiative between Social Development Canada and the Voluntary Sector Forum focusing on the Code of Good Practice on Funding. The survey focused on the funding of administrative costs in federal government agreements with voluntary sector organizations.
The lack of funding to cover administrative costs was identified as one of the most problematic areas of funding during the development of the Code. The Code was intended to strengthen and improve the sustainability of the Voluntary Sector to shore up that hollow foundation.
The funding of administrative costs is comprised of two main components:
the first is the definition of allowable administrative expenses and the funding of those costs and,
the second component is the process and practice of fund administration.
The two are interconnected. Adequate definition and funding of administration expenses can be undone by accountability and fund management practices. This survey therefore looked at the funding of administration expenses in the context of overall fund management.