This document discusses diversification of funding sources for CSOs and key factors that influence donor policies and aid modalities. It notes that the Paris Declaration and Accra Agenda have focused donor support on governments and that donors want measurable results. It also outlines trends in the EU budget that may influence funding, including emphasis on private sector partnerships and global issues. The document advises CSOs to invest in fundraising strategies, communication, and relationship management with donors to strengthen proposals and acquisition of resources from a variety of sources.

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?
•24-5-2011
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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