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Views sought on funding code of practice for Wales

Published : 25/08/23 | Categories: Funding | News |

Welsh Government’s Code of Practice for Funding the Third Sector is currently under review, but why is it being reviewed, what changes are being proposed, and how can the sector ensure its voice is heard?


The Code is an integral part of the Third Sector Scheme and it sets out principles that underpin Welsh Government funding for the voluntary sector and what Welsh Government expects from the sector in return. Its purpose is to ensure fair access to public funding both directly from Government and indirectly through funding provided via public bodies, such as local authorities and health boards to enable the sector to support communities in Wales.

So, isn’t it all already in place? Why does it need to be reviewed? There are a number of issues that have been identified and documented with the current code:

  • As a 30 page document, it’s too long
  • Published in 2014, it’s out of date
  • It is not easy to find on the Welsh Government website
  • There’s a lack of awareness in both public and voluntary sectors

Therefore, although a code of practice already exists, more can be done to make sure it’s working in practice.


Recently the Third Sector Partnership Council’s (TSPC) Funding and Compliance Sub-committee decided it was time to review the Code. But what are they hoping to achieve?

The aim is to:

  • Make the Code more accessible and promote wider awareness of the Code
  • Modernise and simplify the language
  • Produce a one-page summary of the five principles with an overarching aim – with supporting technical guidance sat behind in a shorter document

The outcome will hopefully be a Code that is widely used to improve the design and delivery of funding programmes in Wales allowing the sector to have a greater impact on our communities. In turn, this would lead to improved sustainability of the voluntary organisations delivering them.


These principles are designed to apply to both funders and funded bodies equally in a context of mutual trust, transparency, and safety. Ensuring voluntary organisations and funding bodies are equal partners in any funding conversation within the bounds of managing public money.

The revised proposed principles have been reduced from 17 to five outlined below:

A diagram with connecting circles showing the new proposed principle for Welsh Government's Code of Practice for Funding the Third Sector. There are heading and descriptions for the overarching aim, Early & continuous dialogue, Valuing & outcomes, Appropriate funding basis, Flexibility, and Equity. There is a plain text version available

A plain text version of the diagram is available here.

As is demonstrated by the above diagram, each of the principles overlap and contribute to one another. They are designed to be viewed and used as an interconnected circle of behaviours rather than standalone activities.


This review is not happening in isolation, behind closed doors. The Funding and Compliance Sub-committee want to co-produce a new Code with all stakeholders including those bodies they want to see captured by the Code.

The sector’s involvement is key in this review process. You can provide invaluable insights and contributions to establish whether they’ve got these proposed principles right.


There have been a series of engagement events over the past few months but there’s still time to get involved and ensure your opinion is heard.

We will be hosting a webinar on Wednesday 27 September 10.30 am – 12 pm which will give you an opportunity to find out more about the review, proposed changes and provide your opinion to help shape the next steps.

For further details about the event and how to book your place click here.

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