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PART ONE: WELSH GOVERNMENT FUNDING PRINCIPLES<br />

This chapter of the Code sets out the principles which underpin Welsh<br />

Governm<strong>en</strong>t funding of the Third Sector.<br />

I. Delivery of strategic policy objectives<br />

Welsh Governm<strong>en</strong>t expects that funding will support the delivery of its<br />

strategic policy objectives. Ongoing <strong>en</strong>gagem<strong>en</strong>t with the Third Sector will be<br />

needed to <strong>en</strong>sure mutual understanding of these objectives, as they develop<br />

over time, and will inform the basis of what Welsh Governm<strong>en</strong>t funds and the<br />

Third Sector’s role in delivering agreed outcomes.<br />

The role of the Third Sector, the needs of governm<strong>en</strong>t and the needs of<br />

society, will be tak<strong>en</strong> into account as part of this <strong>en</strong>gagem<strong>en</strong>t. There are likely<br />

to be many areas of mutually agreed policy objectives, but Welsh Governm<strong>en</strong>t<br />

policy objectives will inform all funding decisions. Issues must be worked<br />

through as part of policy developm<strong>en</strong>t processes, underpinned by dialogue to<br />

foster continued understanding of how we can work together and what we can<br />

achieve.<br />

Welsh Ministers will expect Third Sector organisations putting forward funding<br />

proposals to have tak<strong>en</strong> account of the priorities of Governm<strong>en</strong>t set out in its<br />

strategic policy docum<strong>en</strong>ts.<br />

Where the principles of this Code are being applied at local and regional<br />

levels, for example, grant funding from local authorities to the Third Sector,<br />

account may need to be tak<strong>en</strong> of locally defined outcomes and priorities that<br />

contribute to Welsh Governm<strong>en</strong>t’s national priorities.<br />

II.<br />

Respect for the <strong>sector</strong>’s indep<strong>en</strong>d<strong>en</strong>ce<br />

Welsh Governm<strong>en</strong>t recognises that Third Sector organisations are<br />

indep<strong>en</strong>d<strong>en</strong>t, non-governm<strong>en</strong>tal bodies established voluntarily by people who<br />

choose to organise themselves. They are value driv<strong>en</strong>, motivated by social,<br />

cultural or <strong>en</strong>vironm<strong>en</strong>tal objectives and committed to reinvesting their<br />

surpluses to further their social aims and for the b<strong>en</strong>efit of people and<br />

communities in Wales. Welsh Governm<strong>en</strong>t respects the <strong>sector</strong>’s<br />

indep<strong>en</strong>d<strong>en</strong>ce.<br />

Welsh Governm<strong>en</strong>t also acknowledges that some Third Sector organisations<br />

have a variety of roles including, for example, providing advice for their<br />

members and supporting the developm<strong>en</strong>t of policy as well as delivering<br />

services on behalf of Welsh Governm<strong>en</strong>t or other funders. The Third Sector<br />

has the ability to raise funding through non-statutory routes and delivers<br />

services that complem<strong>en</strong>t or are additional to statutory funded services.<br />

Co-operation betwe<strong>en</strong> Welsh Governm<strong>en</strong>t and the Third Sector will promote a<br />

relationship based on reciprocity, recognising the desire to achieve the same<br />

outcomes for people and communities in Wales. This should include mutual<br />

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