FEWO Committee Report

INTRODUCTION

The Women’s Program at Status of Women Canada provides over $10 million in grants to women’s and equality seeking organizations annually. When the Committee met with women’s groups and equality seeking organizations in the fall of 2004 to identify priority areas for action, many witnesses indicated that the shift from core funding to project funding had had a detrimental impact on the ability of organizations to mobilize for greater equality between women and men. In its first report, tabled in the House of Commons on 10 February 2005, the Standing Committee on the Status of Women recommended that the federal government increase funding to the Women’s Program at Status of Women Canada by at least 25% for investments in women’s groups and equality seeking organizations.

Although concerns about government funding featured prominently among the issues equality-seeking organizations wanted the Committee to consider, the Committee did not have an opportunity to question groups specifically on their funding concerns during its initial roundtables in the fall of 2004. As a result, it decided in May 2005 to invite groups to speak specifically to the impact of the current funding arrangements between equality-seeking organizations and the Women’s Program at Status of Women Canada, and on potential solutions to improve the functioning of those funding arrangements. This report is based on the testimony of the diverse women’s groups and equality seeking organizations, from Newfoundland to British Columbia, which participated in two roundtables on funding which the Committee held on 3 May 2005 and 10 May 2005. This report also draws on the testimony of witnesses from Status of Women Canada which appeared before the Committee on 1 February 2005.

CORE FUNDING AND PROJECT-BASED FUNDING IN FEDERAL GOVERNMENT PROGRAMS

A 2003 report on funding of the voluntary sector, prepared by the Canadian Council on Social Development for the Voluntary Sector Initiative, identified the three key distinctions between core funding and project-based funding as follows: ^[1]

• “Core” funding refers to financial support that covers basic “core” organizational and administrative costs in addition to program specific requirements. Providing funding to an organization to operate its own chosen programs is a clear example of core funding. By contrast, program or project funding tends to focus exclusively on project costs. An organization is typically allowed to include a portion of administrative costs such as phone or rent in a project budget, but there are strict terms and conditions detailing what is an acceptable expenditure and what is not.
  
  
• An important distinction between a core and project based funding model is the degree of autonomy that the organization exercises. Non profit and voluntary organizations under a core funding arrangement retain a significant degree of independence in selecting and implementing program and organizational objectives. Within a project-based funding model, the control of the content generally lies with the funder.
  
  
• Core funding tends to be of longer duration, and is considered a more predictable form of funding. Project funding is invariably short-term. Organizations find themselves gearing up on a project only to conclude, then starting over again with yet another activity.

Over the past decade, federal government departments and agencies have been under increasing pressure to reduce risks and to demonstrate results of programs and funding. Although there has been a resulting trend in federal government funding away from core funding to project funding, certain departments continue to provide core funding or to cover organizational costs.

The Treasury Board Secretariat’s Policy on Transfer Payments ^[2] provides broad parameters within which government departments have discretionary power to develop programs, including the definition of eligible recipients and the determination of eligible costs. Nothing in the Policy on Transfer Payments would prevent a department from developing a program which would provide grants to cover the core funding needs of an organization.

OVERVIEW OF THE WOMEN’S PROGRAM

The Women’s Program has provided funding to women’s organizations and equality-seeking organizations in Canada since 1973. Currently managed by Status of Women Canada, the mandate of the Women’s Program is

to support action by women’s organizations and other partners seeking to advance equality for women by addressing women’s economic, social, political and legal situation. This support includes financial support and technical support (such as linking different groups that share a common goal, helping groups gain access to various parts of the government, or providing access to resource materials and tools that help organizations to work more effectively) ^[3].

The Women’s Program spends approximately $10.8 million per year in grants. Projects funded under the Women’s Program must fall within three broad areas of focus, including:

• improving Women’s Economic Status
  
  
• eliminating Systemic Violence Against Women and the Girl Child
  
  
• achieving Social Justice