An organisation that supports voluntary organisations in Wolverhampton has credited the Compact with helping to maintain the city's voluntary sector budget.
Wolverhampton City Council this week decided it would keep its allocation of £2.97m funding for the voluntary and community sector for 2011/12, despite significant budgetary pressures.
Ian Darch, chief executive of Wolverhampton Voluntary Sector Council, said the Compact – the partnership agreement between the council, public agencies and the voluntary and community sector – had helped to keep the budget at existing levels.
"Our Compact has played a key role in developing an environment in which the voluntary and community sector can thrive and we are very pleased that the council has adhered so closely to Compact principles in its response to the financial challenges that we face as a city," he said.
Councillor John Pask, lead member for neighbourhoods and communities, said the council's cabinet made the decision despite a "very challenging budgetary situation".
He added: "The city needs economic growth to be supported by a strong civil society. The council will be working with organisations across the city to establish priorities and achieve further efficiencies, as well as service improvements."