14. Guidelines for good policy and practice on the part of ''North'' and international agencies

Guideline 14: Funding practices

14/1 Procedures and conditions:

The procedures and conditions of funders should:

- not undermine the integrity and independence of NGOs;
- not distort their identity, objectives and activities nor promote division or discrimination.

14/2 Agreements:

When funds are supplied to an NGO, funder and NGO should have a written agreement or other form of formal understanding or contract which specifies:

- the overall purpose of the grant or contract fee supplied, and the methods and activities to be undertaken;
- intellectual property rights, including material designed for fund-raising or educational purposes;
- reporting operational and financial arrangements and general communications procedures;
- a detailed budget, specifying amounts allocated to external activity costs and internal costs;
- procedures regarding visits by the funder to the NGO and activity being supported;
- procedures for periodic review of the grant or contract;
- procedures for grant or contract amendment by either party;
- procedures in the event of a dispute;
- procedures to be used by either party for contract termination.