Agency to pass on material (8)
I believe the answer is:
organdie
'material' is the definition.
(organdie is a kind of material)
'agency to pass' is the wordplay.
'agency' becomes 'organ' (as in an organ of government).
'to pass' becomes 'die' (I've seen this before).
'organ'+'die'='ORGANDIE'
'on' is the link.
(Other definitions for organdie that I've seen before include "Badly ignored a fine cotton muslin" , "Oddly ignored a fine cotton muslin" , "Dress material" , "Fine stiffened translucent fabric" , "Translucent cotton fabric, usually stiffened" .)