12. Guidelines for good policy and practice on the part of NGOs

all text © Commonwealth Foundation

Guideline 12: Funding policies

12/1 Partnership:

Funders' policies and actions should be underpinned by a policy and philosophy of partnership, both with those who supply their funds, and those NGOs to which they are made available.

12/2 Consultation:

Funders need to honour responsibilities and be accountable to their funding sources. In formulating their policies, they should, nevertheless, consult with relevant NGOs and NGO networks, with other funders, and where appropriate with governments about:

- overall funding policies, strategies and priorities;
- the social, legal and economic environments in which NGOs are operating;
- the needs of NGOs, their capacities, potential and limitations;
- criteria and practices for funding, including procedures, conditions, agreements and time-scales for the disbursement of funds;
- management, reporting, accountability and evaluation arrangements.

12/3 Research:

As well as consulting NGOs and others in the process of developing their policies, funders should also inform the development of such policies through undertaking appropriate research.

12/4 Communication:

Funders should be transparent by:

- communicating their mission, objectives, policies, activities, geographical scope, decision-making, fund- raising and grant-giving methods and procedures and criteria both to their sources of funds and to potential
NGO recipients;

- producing and disseminating reports on their income and expenditure;

- engaging in regular dialogue with NGOs.