In 2010-2011, AANDC provided $28 million in core funding to 5 national and 40 regional Aboriginal organizations and an additional $73 million in project-based funding for a total of $101 million (2010-2011 Report).
The Government values its relationship with Aboriginal Representative Organizations and recognizes the contribution they make on behalf of their members. To support the work of AROs, AANDC provides both core funding and project funding. Core funding supports basic operations such as salaries, rent and utilities.
Project funding is allocated on a case-by-case basis based the proposed projects' alignment with Government of Canada priorities and funding availability. Typically, project funding is accessed through proposals for specific projects or initiatives with fixed timeframes.
We are taking steps to ensure that government funding for organizations is directed at the delivery of essential services and programs for Aboriginal peoples.
Our new approach will ensure that projects being funded are better aligned with our shared priorities: education, economic development, community infrastructure, and other initiatives that promote greater self-sufficiency in Aboriginal communities.
The changes to core funding will also create greater funding equity among Aboriginal organizations across Canada.
To minimize the impact of these changes on organizations, we are streamlining their reporting requirements, and we are implementing them over time. This will allow Aboriginal organizations to adapt their operations, and should they desire to do so, seek out new funding sources.
Under the new funding formula, all National and Regional AROs in receipt of core funding in 2012-2013 will have their funding reduced. Core funding for national Aboriginal Representative Organizations will be reduced by 10 percent. Regional AROs will either have funding reduced by 10 percent or have a ceiling up to $500,000 applied to their core funding. Reductions are based on current 2012-2013 funding levels.
There will also be gradual reductions in the amount available for proposal-based project funding. Overall project-based funding will be more closely aligned with key priorities.
In order for Aboriginal Representative Organizations to have sufficient time to adjust their operations, these changes will be implemented over two fiscal years, with reductions in project funding starting in 2013-14 and reductions in core funding taking effect in 2014-2015.
The revised amount of funding for projects will be targeted to priority areas, where real and concrete results can be achieved. This will mean more accountability to members and, in keeping with AANDC's commitment to reducing the reporting burden for funding recipients, will include a streamlined application and reporting mechanism for project-based funding.
