13. Guidelines for good policy and practice on the part of funders

Guideline 13: Funding purposes

13/1 Internal costs:

In formulating their policies and criteria, funders should recognise that as well as requiring funds for their programme, project and service activities, NGOs also require funds to meet the internal and often hidden costs of:

- training and human resource development, including gender equity;
- administration, management and financial management;
- research and development;
- evaluation;
- communication.

13/2 Sustainability:

Funders should also be prepared to consider support which will strengthen the long-term sustainability of NGOs. Such support could include:

- making investment possible by NGOs or by funders on their behalf;
- offering long-term, comprehensive and flexible support rather than short-term, partial or project-specific funding;
- encouragement and support for co-operation and networking among NGOs.

13/3 Umbrella NGOs and NGO networks:

Funders should also be prepared, individually and collaboratively with other funders, to provide financial support for umbrella NGOs, NGO networks and organisations which provide services to support and strengthen the management and organisational capacities of NGOs.