1. Diversification of funding sources:
Key to independence and sustainability of CSOs
Izabella Toth, CORDAID
14 April 2011, Brussels
European Open Forum for CSO Development Effectiveness
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2. SUMMARY
• Factors that influence the present donor aid
modalities: the Aid Effectiveness Agenda
• CSO Policies and future trends at the level of donors
• Preconditions for successful resource acquisition
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3. Factors that influence the donor aid architecture and
modalities
The 2005 Paris Declaration (national ownership, alignment, donor
harmonization, managing for results & mutual accountability): focus on
the role of the Southern Government.
Accra Agenda for Action, 2008: Art. 20:
need for participation of csos in national policy formulation,
need for creating an enabling environment for csos,
need for effectiveness of csos &
need to respect the autonomy of csos.
Donors need to be more strategic and focused with
their funds (concrete measurable deliverables).
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4. Some of the factors influencing the debate on the
future EU multiannual Budget (2014-2020)
• Chinees model for develpment?
• « inclusive growth »= « economic growth » = new mantra for development
• Private sector = potentially new actor
• Global common goods (climate, good governance) via pooled funding
• Migration & development issues
• Security / common foreign security policy predominant when making
choices
• Increased reliance on multilateral aid (via EC, WB, UN ed)
• Bilateral donors give more & more support via Direct Budget Support
• Emphasis on country context AND
• Emphasis on country différentiation: choices according to specific
priorities, such as economic interests of the donor)
• Donors seek alternative development aid providers: local authorities,
private sector, consultancies even…
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5. Civil Society seen by donors as..
• Contractors to implement government programs
• Watchdogs to monitor implementation of the government programs
(incl budget monitoring)
• Substitutes for the State in Fragile States
• Actors towards broadening participation in National Development
Planning.
The policy goal of supporting a vibrant civil society is not
operationalised in mechanisms that make inclusive approaches
possible.
Following the Maghreb revolutions: Donors have to give attention
to “support destabilization” (recognition & support to civic
movements and CSOs), instead of supporting “stabilization”
(deriving from own geopolitical interests)
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6. CSO Policies and future trends at the level of donors
(source: Intrac Study for DFID, May 2010)
Multilaterals:
• CSO policy focused on need for consultation & participation in programs
at country level + the inclusion of Global CS groups in lobby towards
multilaterals towards their policies.
• Perception of role CS: moving from service delivery towards agenda-
setting role in multilaterals policies and practices.
• UNDP, UNICEF and EC encourage “upstream” strategy for involvement
of CS (in national policy dialogue).
• Greater focus on contextual understanding of the needs (context
analysis per country / region)
• Mapping exercises of CS in countries, for better understanding of the
local spectrum.
• UNICEF and African Development Bank:: developing Guidelines on
partnership with CS-groups.
• EC: requires Delegations to consult with local CS during Country
Strategy. Mandatory Guidelines to involve CS in sector programming
are also on their way.
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7. CSO Policies and future trends at the level of donors
(Intrac study May 2010)
Bilaterals:
• Objective of CS policy: approach towards strengthening CS for its
own sake
• Civil Society has greater role at global level (international foray and
Human Rights framework): added value CS in advocacy (besides
service delivery) and strong focus on capacity building.
• Increased focus on contextual understanding of needs (context
analysis per country / region).
International Private Foundations:
Focus driven by the interests and passions of the founders
Mission: increase opportunity and equity for those most in need
Delivering results with the resources they gave is of the utmost importance
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8. Space for CSOs in the aid architecture and respective
modalities?
• Have we become over dependent? Do we still follow our own
vision & mission? Or do we adjust “accordingly”?
• How do we deal with the limitations (in access to voice and access
to funding) provided by the present architecture?
• Are we able to “show value for money” as interpreted by donors?
Do we have and want to do that?
• Can we / our partners truly fulfil watchdog roles, given the
challenging environment CSOs work in? Processes need long
term, sustainable funding. How do you explain “need funds to
change power relations” to a donor?
• Call upon donors: formulate strategies for cooperation and support
of CS. See CS as agents for change.
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9. Develop an own fundraising strategy
Invest in proper Fundraising strategy development,
owned by the whole organisation (from senior manager
to implementing staff)
Reflect upon
• Sort of actions to be presented to a funder.
• What’s the added value of your action? (to your
strategy, to your target group’s needs? To the donor’s
priorities?)
• Is your action visible and marketable?
• Which financing modality fits best YOUR organisation?
• Which partners do you sollicit? Do they sollicit you as
well?
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Which donors do you approach, Why and HOW? 9

10. Suggestions for successful resources acquisition
Use a good Communication strategy
• knowledge management / policy papers / position
papers on your unique selling points
• visibility plan for the organisation and / or actions
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11. Suggestions for successful resources acquisition
Invest in Relation management with potential donors
(public & private)
• Be proactive
• Contact personally delegations, embassies,
government representatives
• Organise events and invite potential donors
• Give exposure to your organisation
Highlight your best practices and successes
(individually AND in coalitions)
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12. Suggestions for successful resources acquisition
- Create your own alert system:
- On donor priorities, eventual publication cycles, for
calls and other trackable opportunities
- Work with professionals for writing – or reserve capacity
to acquire expertise when requested
- Establish clear division of labour within your
organisation – during acquisition and implementation
- Make sure that institutional capacity of your
organisation is adequate
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13. Preconditions for successful resource acquisition
Eligibility Criteria of Organisation:
• Proven trackrecord on the subject of the funding possibility / call
• Sound management system
• “matching funds” available
At Level of the Proposal:
• Sharp needs assessment (including knowledge of donor priorities)
• Good Planning
• Sharp proposal for execution
• Sound monitoring and evaluation plan
• Sound methodology proposed for sustainability of action
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14. Preconditions for successful implementation
…this is your track record….
Sound institutional settings:
• good internal management (committment of the
whole organisation, from Board to Staff)
• proven finance and accounting system
Good knowledge of - and capacity for implementing rules
and regulations set by donors
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15. What would any donor like to see? (any donor!)
• Awareness of, and links with donor strategies, or vision
upon goals to be reached (general public)
• Work together in Consortia and coalitions structures
• CSO ownership of the action (incl. own financial
contribution)
• Measurable and visible results
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16. Thank you.
Questions?
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