More transparency in NGO funding

Efficiency, transparency, accountability. Anyone working in the international development field has heard the mantra ad nauseum. And yet when it comes to financing NGOs from the EU budget – to the tune of 1.4 billion euros in 2009 – the mantra falls to pieces.

The problem isn’t a new one but research presented November 15 in Brussels suggests that a change in strategy could improve the transparency of operations and the effectiveness of funding. The desk research, carried out independently between June and September 2010, surveyed 120 NGOs and consulted with 40 stakeholders before producing their recomendations, which are included in a report called Financing of NGOs from the EU Budget.

“The first problem is that there is no definition of the term NGO” explains Roland Blomeyer, one of the authors, “the European Commission should consider establishing standard wording in order to enhance the clarity of its funding programmes”.

The report goes on to highlight the innefficiencies of short term project funding and stresses the importance of programme funding which encourages strategic support to NGOs and allows NGOs to improve their organisational development.

According to Blomeyer, NGOs want to be involved in policy dialogue with the EU as it encourages a sense of partnership with the institutions and makes them equal players rather than mere recipients.

Finally, the report points to the complicated and lengthy EU grant administration which diverts limited resources away from project delivery. “Whilst the EU has made considerable efforts in recent years many NGOs are still struggling with the administrative burden of EC grants … the EC should streamline application and implementation procedures and introduce more proportional financial control and reporting requirements” concludes the report.