A leading voluntary sector body has warned that the government's drive to increase charities' involvement in the delivery of public services is being undermined by poor contracts.
Nearly one-third of the 70 charities surveyed by the Association of Chief Executives of Voluntary Organisations reported that they had cancelled or shut services because of poor funding practices.
Deputy chief executive Gail Scott-Spencer said: "We have already shown that bad contracts waste public money and mean worse services for our clients."
The news follows the government's welcome last month of promises from the Big Lottery Fund to adopt the principle of core cost recovery and introduce more flexibility in the length of time funding is available.
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Government Legislation
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