Here are five tips that you should follow if you are looking for sustainable, long-term partnerships with your donors.

Be Reliable

Being reliable can help you build a strong relationship with your donor and be a good partner. Your word should be trustworthy, especially while the project you were funded for is being implemented. The project’s execution is the first stage in which donors may see that they have partners they can rely on. Meet your deadlines, get in touch with people when you promised to, return calls and emails promptly, and just be available for anything that comes up. Naturally, this also entails fulfilling the commitments you made in your proposal. Make sure you do not make projections in your proposal that are not realistic, as you will be perceived as unreliable if you have to admit that in the project report.

The same applies to the aftermath of receiving a grant. You still should prove to be a loyal and reliable partner. If you promised to send additional pictures, do so in time. If the donor wants any further information, provide it immediately, even if it exceeds the original report. All this shows that you have a good management system in place and can be a trusted partner in the future.

Maintain Communication

Maintaining regular communication throughout the project’s duration is essential, as it keeps donors informed about your progress and any challenges you may encounter. By keeping donors in the loop, you open the door for potential assistance in overcoming obstacles that may arise.

Post-project, continuing to stay in contact is crucial for nurturing a long-term relationship. Consider inviting donors to presentations, conferences, or workshops where you showcase your work. Even if they are unable to attend, it serves as a gentle reminder of your ongoing dedication. Moreover, if they do attend, it presents an opportunity to deepen your connection and expand your network. However, it’s essential to strike a balance and avoid overwhelming donors with excessive communication. Sending too many emails can be annoying. Instead, focus on sending important updates and exciting news to your donors. They’ll appreciate staying in the loop without feeling overwhelmed by too many messages.

If you develop a good and maybe casual relationship with your advisor at the donor agency, also make sure to build on this relationship for the future. Do not get too personal, but keeping it friendly even after the end of the project goes a long way.

Prioritize Honesty

Being honest is super important for a good relationship. It’s the foundation of trust. When you’re talking about how well your project is going, it can be tempting to make things sound better than they are. But that’s not a good idea in the long run. If you exaggerate your successes, the donor might be let down later when they find out the truth. It’s better to be honest from the start, even if it means admitting to some challenges.

During the project, it’s crucial to keep the donor updated regularly. Imagine if they hear nothing for months and then find out at the end that there were problems all along. That’s not good for anyone. If you can’t reach a milestone, be upfront about it. Explain why it didn’t happen and what you’re doing to fix it. Sharing problems early isn’t a weakness—it’s being professional. Donors can help you find solutions if you keep them in the loop. And being honest, even when it’s tough, shows that you’re a dependable partner for the long haul.

Deliver Outstanding Reports

Invest time and effort into crafting comprehensive and insightful project reports. Quality reporting demonstrates your organization’s professionalism and commitment to accountability. Show the donors how their support has made a real difference. Explain how their money has led to positive changes. By giving them clear examples of the impact, you’re showing them that their investment was worthwhile. Keep giving them top-notch reports, and they’ll see the value of working together. This sets the stage for more collaborations in the future.

Consider Ways to Provide Value

The donor believed in your NGO and gave you money to help. If you want to keep that relationship going, it’s a good idea to think about how you can help them too. After sending in a great report, there are still more ways to give back. Even long after the project is done, you can find ways to help the donor.

Recommend the donor to others, if you have good cooperation. If you talk about how great it was to work with them at conferences, workshops, or other events, they might hear about it and be grateful. Maybe they will even recommend you to others as well.

Always acknowledge the donor’s contribution. Utilize social media platforms by tagging them in posts related to the project they supported, demonstrating the impact of their investment. Share compelling visuals and evidence of long-term project success with the donor, permitting them to utilize such content for their promotional efforts. This approach reflects a forward-thinking perspective, benefiting both your work and the collaborative partnership.

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By following these tips, you can build a strong bond with your donor. Even if it doesn’t lead to more funding right away, having partners in the sector is valuable. Over time, these good partnerships will benefit your NGO and your projects.

As Europe’s flagship research and innovation program, Horizon Europe offers unparalleled opportunities for any organization that is working on research and innovation. Horizon Europe has a budget of around €95.5 billion for 2021–2027. However, crafting a successful proposal requires more strategic thinking, planning, and persuasive communication. In this article, we will explore the essential steps to writing a compelling proposal that stands out in the Horizon Europe ecosystem.

Understand the program:

Understand Horizon Europe’s objectives, priorities, and evaluation criteria. Familiarize yourself with the program’s overarching goals, such as promoting scientific excellence, driving innovation, and addressing societal challenges. Take the time to explore the thematic areas and funding priorities relevant to your project, aligning your proposal with the program’s strategic objectives. Check the eligibility criteria before you start the application. Only if you are eligible to apply can you go ahead with the proposal writing.

Horizon Europe typically funds research and innovation projects tackling societal challenges with an emphasis on EU industrial leadership, recovery, and the green and digital transitions (e.g., high-performance computing, artificial intelligence, data and robotics, batteries, smart cities, cancer and rare diseases, the carbon-neutral and circular industry, and the blue economy). The budget is divided among four pillars and 15 components to create a program that supports all the areas of research and innovation: 

1. excellent science, global challenges: 

• European Research Council; 
• Marie Skłodowska-Curie actions; 
• research infrastructure. 

2. industrial competitiveness: 

• health; 
• culture, creativity, and inclusive society; 
• civil security for society; 
• digital, industry, and space; 
• climate, energy, and mobility; 
• food, economy, natural resources, agriculture, and environment; 
• Non-nuclear direct actions of the Joint Research Centre. 

3. innovative Europe: 

• European Innovation Council; 
• European innovation ecosystems; 
• European Institute of Innovation and Technology. 

4. widening participation and strengthening the European research area: 

• widening participation and spreading excellence; 
• reforming and enhancing the European research and innovation system. 

The Horizon Europe Regulation establishes a range of targets concerning the use of the budget:

• 35 % of the budget contributes to climate objectives; 
• there is a substantial increase in spending on main digital research and innovation activities compared to Horizon 2020; 
• 70 % of the budget of the European Innovation Council is allocated to small and medium-sized enterprises; at least 3.3 % of the budget is committed to the program part dedicated to widening participation and spreading excellence; 
• investment in space is commensurate with that under Horizon 2020; 
• the participation of industry in the actions should be supported at levels at least commensurate with those under Horizon 2020; 
• the budget should contribute to the overall ambition of providing 7.5% of annual spending under the MFF to biodiversity objectives in 2024, and 10 % of annual spending under the MFF to biodiversity objectives in 2026 and 2027.

Structure your proposal:

A well-structured proposal is essential for capturing the attention of donors and conveying your ideas effectively. Break down your proposal into various logical sections, including:

• Introduction: Provide a concise overview of your project, highlighting its significance and relevance to Horizon Europe’s objectives.
• Objectives: Clearly define the goals and objectives of your project, outlining the specific outcomes you aim to achieve.
• Methodology: Describe the approach, methodologies, and techniques you will use to conduct your research or implement your innovation.
• Impact and Sustainability: Articulate the expected impact of your project and how it contributes to addressing societal challenges. Discuss the long-term sustainability of your proposed activities. You need to remember that your proposed activities must meet the actions supported by the Horizon Europe programs. The actions that are supported by  Horizon Europe are as follows: 
  • networking and coordination; 
  • research; 
  • innovation; 
  • pilot actions; 
  • market deployment actions;
  • training and mobility actions; 
  • dissemination and exploitation of results, etc.
• Partnerships: Describe the group of organizations involved in your project, highlighting what each partner is good at and what resources they have. Emphasize the collaborative nature of your project and the synergies between different stakeholders.

Develop a convincing narrative:

The primary aim of the proposed project is to secure funding. While organizations may possess profound insights into a particular field and the required interventions, the essence of proposal writing lies in effectively communicating this information to individuals who may lack similar expertise or any background in the subject matter.

A strong intervention needs to show that the organization or project team has the skills and knowledge needed to make the proposed solution work. Within the proposal application, this entails showcasing relevant capacities for leading activities and work packages, as well as a robust project management structure, clear division of roles, effective dissemination and communication strategies, and a comprehensive risk mitigation approach. 

Leveraging Resources and Support

Take advantage of the resources and support available to help you navigate the proposal writing process. Familiarize yourself with Horizon Europe’s guidelines, templates, and support tools, such as the Horizon Europe Engagement Toolkit and Proposal Evaluation Guidelines. Seek feedback from colleagues, mentors, or professional consultants to refine your proposal and address any potential weaknesses. All funding information and procedures on how to apply are on the funding and tenders portal.

Learn more about Horizon Europe here. 

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Writing a winning proposal for Horizon Europe requires a combination of strategic thinking, technical expertise, and effective communication skills. By understanding the program’s objectives, embracing impact orientation, structuring your proposal thoughtfully, crafting a compelling narrative, and leveraging available resources and support, you can increase your chances of success in securing funding for your research or innovation project. Remember, the journey of proposal writing is as much about the process as it is about the outcome—so embrace the challenge, learn from feedback, and continue to refine your skills as a proposal writer in the dynamic landscape of Horizon Europe.

“A green economy is defined as low carbon, resource efficient and socially inclusive. In a green economy, growth in employment and income are driven by public and private investment into such economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, enhanced energy and resource efficiency, and prevention of the loss of biodiversity and ecosystem services.”- UNEP

In 1989, a group of environmental economists commissioned by the UK government proposed the concept of a green economy. The green economy initially focused on national concerns and broadened to address global challenges such as climate change, deforestation, wildfires, and ozone depletion. It prioritizes the energy and transportation sectors, followed by agriculture and forestry.

The United Nations Environment Programme (UNEP) significantly popularized the concept through its 2008 Green Economy Initiative. Aligned with SDGs 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), and SDG 15 (Life on Land), it addresses key global challenges.

What is a Blue Economy?

“Blue Economy is sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.” – World Bank

The blue economy, which has its roots in the green economy, aims to sustain fisheries, and maritime, and coastal resources. It focuses on the sustainable use of ocean resources, marine conservation, and maritime industries and aligns closely with SDG 14 (Life Below Water), which concerns the conservation and sustainable use of the oceans, seas, and marine resources for sustainable development and demands international cooperation for the oceans to get back in balance. According to OECD projections, the Ocean Economy is expected to double by 2030, reaching USD 3 trillion and employing 40 million people. Oil and gas, fishing, aquaculture, shipping, tourism, offshore wind energy, mining, and marine biotechnology are just a few industries that make up the ocean economy, which is expanding quickly.

Source: OECD

How did the concepts of green economy and blue economy emerge in the realm of NGOs?

The origins of the green economy and blue economy concepts among non-governmental organizations (NGOs) can be traced back to their efforts to address environmental degradation, promote sustainable development, and advocate for policy changes in local, national, and international domains. NGOs have played a significant role in shaping the discourse and promoting the adoption of these concepts through research, advocacy, and grassroots mobilization.

Both the green economy and the blue economy have emerged as guiding principles for NGOs. Rooted in the urgent need to address environmental challenges and foster sustainable practices, these frameworks have become the fundamental pillars of NGO initiatives aimed at promoting ecological stewardship and equitable development.

NGOs’ Role in Green Economy

Advocacy and Awareness: NGOs are at the forefront of raising awareness about environmental issues and advocating for policies that support green economic practices. Through campaigns, educational initiatives, and grassroots mobilization, NGOs engage communities and policymakers in dialogue and action toward sustainable development goals.

Capacity Building: NGOs provide training, technical assistance, and capacity-building programs to empower individuals and communities to embrace green practices and participate in sustainable economic activities. By equipping stakeholders with the knowledge and skills needed to adapt to changing environmental conditions, NGOs foster resilience and promote inclusive development.

Policy Engagement: NGOs engage in policy dialogue and advocacy to influence decision-making processes at local, national, and international levels. By collaborating with governments, intergovernmental organizations, and other stakeholders, NGOs contribute to the formulation and implementation of policies that support the transition to a green economy and address pressing environmental challenges.

NGOs’ Role in Blue Economy

Marine Conservation: NGOs lead efforts to protect marine ecosystems, preserve biodiversity, and mitigate the impacts of human activities on oceans and coastal areas. Through marine conservation projects, research initiatives, and advocacy campaigns, NGOs work to safeguard marine habitats, restore degraded ecosystems, and promote sustainable fisheries management.

Community Engagement: NGOs collaborate with coastal communities, indigenous groups, and fisherfolk to promote community-based approaches to marine conservation and sustainable livelihoods. By empowering local stakeholders to participate in decision-making processes and sustainable resource management practices, NGOs foster social inclusion and equity within the blue economy framework.

Eco-tourism and Sustainable Development: NGOs promote eco-tourism initiatives that offer alternative livelihood opportunities while promoting environmental awareness and conservation. By leveraging the potential of tourism as a tool for sustainable development, NGOs support initiatives that prioritize responsible tourism practices, cultural preservation, and environmental education.

The green economy and blue economy represent holistic approaches to sustainable development that prioritize environmental integrity, social equity, and economic prosperity. Through their advocacy, innovation, and grassroots engagement, NGOs play a critical role in advancing these agendas and driving positive change toward a more sustainable and resilient future for all.

Bilateral donor funding for the Green Economy and the Blue Economy

Bilateral donor funding plays a pivotal role in advancing initiatives within both the green economy and blue economy sectors worldwide. These funds are crucial for supporting projects that promote sustainability, environmental conservation, and economic development. Some of the major bilateral donors known for supporting environmental and sustainable development projects include:

• United States Agency for International Development (USAID): USAID supports a wide range of environmental and sustainable development initiatives globally, including those related to the green and blue economy.
• European Union (EU): The EU provides funding for various environmental and sustainable development projects worldwide, including support for green and blue economy initiatives in its member states and partner countries.
• Germany’s Federal Ministry for Economic Cooperation and Development (BMZ): Germany’s BMZ is actively involved in funding projects related to environmental protection, sustainable development, and green economy initiatives in developing countries.
• Japan International Cooperation Agency (JICA): JICA supports sustainable development efforts in various sectors, including environmental conservation and blue economy initiatives, particularly in Asia and Africa.
• Norwegian Agency for Development Cooperation (Norad): Norway provides significant funding for environmental and climate-related projects worldwide, including support for initiatives promoting sustainable practices in the blue economy.
• Swedish International Development Cooperation Agency (Sida): Sida funds a wide range of development projects, including those aimed at promoting sustainable resource management and green economy practices in developing countries.
• United Kingdom’s Department for International Development (DFID): The DFID has historically supported various green and blue economy initiatives across the globe.

Private Foundations Funding in the Green Economy and the Blue Economy

In the year 2021, the private foundations that funded the green and blue economies are as follows:

The Ocean Foundation: The Ocean Foundation is a private foundation dedicated to supporting ocean conservation efforts. In 2021, they funded $8.5 million for various projects focused on the blue economy, such as sustainable fisheries management, marine conservation, coastal community resilience, and research on ocean health. The foundation often collaborates with other organizations and partners to implement these initiatives.

The Rockefeller Foundation: The Rockefeller Foundation is known for its support of initiatives related to sustainability, resilience, and social innovation. Along with the Bezos Earth Fund and the IKEA Foundation, the Rockefeller Foundation co-founded the Global Energy Alliance for People and Planet in 2021, and it has since pledged $500 million to the project.

The Rockefeller Foundation has continued to fund projects aimed at advancing the green economy, including investments in renewable energy, sustainable agriculture, clean transportation, and climate resilience strategies in vulnerable communities around the world.

The Gordon and Betty Moore Foundation: The Gordon and Betty Moore Foundation has a strong focus on environmental conservation and sustainability. In 2021, they provided funding for initiatives promoting the blue economy, such as marine protected areas, sustainable seafood practices, oceanographic research, and the development of innovative technologies for ocean conservation and management. In the same year, the foundation allocated $33.7 million towards climate action initiatives.

The MacArthur Foundation: The MacArthur Foundation supports a range of initiatives related to sustainability, including those aligned with the green economy and blue economy. In 2021, they funded projects focused on renewable energy, conservation finance, climate resilience, and sustainable development in both terrestrial and marine ecosystems. During that year, the foundation pledged $39.8 million towards climate action efforts.

“NGO policy” can refer to the policies and regulations that govern the operations and activities of non-governmental organizations (NGOs). These policies can vary widely from one country to another and even within regions, as local laws, cultural norms, and the specific focus and mission of the NGO often influence them.

Here are some common aspects of NGO policies:

• Registration and Legal Status: Most countries require NGOs to register with the government or relevant regulatory bodies to operate legally. The registration process often involves providing details about the organization’s mission, structure, and leadership.
• Funding and Financial Accountability: NGOs may be subject to policies related to their funding sources, financial reporting, and accountability. This can include rules about fundraising, transparency in financial matters, and managing donor funds.
• Governance and Leadership: NGO policies may outline the structure of the organization, including the roles and responsibilities of board members, officers, and staff. They may also include guidelines for conflicts of interest and ethical conduct.
• Program and Project Implementation: NGOs often have policies related to their core activities, including the development and implementation of programs and projects. These policies may address issues such as program design, evaluation, and impact assessment.
• Human Resources: Policies regarding the hiring, management, and treatment of employees and volunteers may be established to ensure fair and ethical practices within the organization.
• Advocacy and Lobbying: Some countries have specific policies regarding NGOs’ advocacy and lobbying activities, which can include restrictions on political involvement or advocacy on certain issues.
• Compliance with Local Laws: NGOs are expected to comply with all relevant laws and regulations in the regions where they operate, and their policies may reflect this commitment to legal compliance.
• Reporting and Documentation: Many NGOs are required to submit periodic reports to government authorities or regulatory bodies to demonstrate their activities, financial status, and impact. Internal documentation and record-keeping policies may also be in place.

It’s important to note that the specific policies and regulations governing NGOs can differ significantly depending on the country and local context. NGOs frequently have to juggle a complicated web of legal and regulatory obligations, varying in severity and enforceability.

NGOs Policy

Non-governmental organizations (NGOs) typically follow a wide range of policies to guide their operations and ensure they align with their mission and values.

Some of the key policies that NGOs often adopt include:

• Gender Inclusion Policy: This policy outlines the organization’s commitment to promoting gender equality and ensuring that gender considerations are integrated into all aspects of its work. It may address issues such as gender-based violence prevention, gender-responsive programming, and gender diversity within the organization.
• Child Protection Policy: This policy focuses on safeguarding the well-being and rights of children involved in or impacted by the organization’s programs and activities. It includes guidelines for preventing and responding to child exploitation, abuse, and neglect.
• Governance, Ethics, and Standards of Operation (GESO): This policy sets out the organization’s commitment to good governance, ethical conduct, and adherence to international standards of operation. It covers areas like transparency, accountability, integrity, and responsible use of resources.
• Human Resources Policy: This policy covers various aspects of managing the organization’s workforce. It includes recruitment and hiring procedures, compensation and benefits, professional development, employee rights, and workplace behavior expectations.
• Financial Accountability and Transparency Policy: This policy ensures that the organization’s financial operations are conducted with integrity. It includes guidelines for budgeting, financial reporting, auditing, and the responsible use of funds.
• Environmental Responsibility Policy: NGOs that focus on environmental or sustainability issues may adopt policies that address their own environmental practices, including waste reduction, energy efficiency, and sustainable procurement.
• Data Protection and Privacy Policy: A Data Protection and Privacy Policy in an NGO outlines the organization’s approach to managing and safeguarding personal data and respecting the privacy of individuals associated with the organization.
• Safety and Security Policy: For organizations operating in high-risk or conflict-prone areas, this policy covers measures to protect the safety and security of staff, volunteers, beneficiaries, and assets. 
• Crisis Management and Emergency Response Policy: This policy provides a framework for responding to crises, disasters, and emergencies, including procedures for evacuation, communication, and coordination.
• Donor Relations and Compliance Policy: This policy governs the organization’s interactions with donors and funders. It includes guidelines for proposal development, grant management, and compliance with donor requirements.
• Code of Conduct: A code of conduct outlines the ethical behavior and values expected of all individuals associated with the organization, including staff, volunteers, and partners.
• Advocacy and Lobbying Policy: NGOs engaged in advocacy work may adopt policies to guide their engagement with governments and legislative bodies while ensuring compliance with relevant lobbying laws and regulations.
• Stakeholder Engagement Policy: This policy outlines how the organization engages with beneficiaries, local communities, and other stakeholders. It emphasizes the importance of involving these groups in decision-making processes.
• Monitoring and Evaluation Policy: This policy provides guidelines for monitoring and evaluating the impact of the organization’s programs, ensuring data-driven decision-making and program improvement.
• Prevent Sexual Exploitation and Abuse (PSEA) Policy: The Preventing Sexual Exploitation and Abuse (PSEA) Policy provides assistance to vulnerable populations as it aims to protect beneficiaries, staff, and other individuals from sexual exploitation and abuse by personnel associated with the organization.
• Anti-Corruption and Whistleblower Policy: Organizations may have policies in place to prevent and address corruption, including mechanisms for reporting misconduct (whistleblowing).
• Partnership and Collaboration Policy: For NGOs that work with other organizations, this policy sets out guidelines for building and maintaining partnerships and collaborations, including principles of fairness and shared responsibility.

Why is it important?

NGO policies serve as a foundational framework for responsible and effective operations. They protect the organization, beneficiaries, and the environment while also demonstrating a commitment to ethical conduct and transparency. Here are some reasons why it is important:

• Donor Requirements: NGO policy is important because donors often require them to demonstrate transparency, accountability, and adherence to ethical and legal standards to ensure that their contributions are used effectively and responsibly. These policies, which cover topics like governance, financial openness, human rights, gender equality, environmental stewardship, and ethical behavior, are essential for reassuring donors that their contributions will be used to further the organization’s mission and foster trust, credibility, and long-lasting relationships.
• Transparency and Trust: Transparent policies foster trust among donors, beneficiaries, and the public. By openly sharing their commitment to ethical standards and responsible practices, NGOs demonstrate their integrity and gain credibility.
• Legal Compliance: Many NGO policies are rooted in international legal standards, ensuring that organizations operate within the legal boundaries of the regions in which they work. This minimizes legal risks and consequences.
• Good Governance: NGO policies promote good governance by establishing principles and guidelines for ethical leadership, decision-making, and conflict resolution. They prevent abuses of power and promote fair and ethical practices.
• Preventing Conflicts of Interest: Policies like the Conflict of Interest Policy help prevent situations where individual interests could compromise the organization’s objectives. This protects the organization’s integrity and ensures that resources are used for their intended purposes.
• Protecting Vulnerable Populations: Policies such as the Safeguarding and Child Protection Policies emphasize the importance of protecting the well-being of vulnerable populations that NGOs often serve. This ensures that the organization acts in its best interests.
• Gender Equality: Policies may address gender equality and non-discrimination, promoting diversity and inclusivity within the organization. This is not only a moral imperative but also enhances the quality of services and decision-making.
• Environmental Responsibility: NGOs working on environmental issues may have policies addressing responsible environmental practices. This reflects a commitment to sustainability and reduces the organization’s environmental footprint.
• Ethical Conduct: Ethical codes of conduct guide the behavior of staff and stakeholders, setting high standards for professionalism and integrity. This fosters an organizational culture that values ethical behavior.

NGO policies are essential frameworks that govern their operations, ensuring they function in a responsible, transparent, and accountable manner. These policies cover various aspects, including registration, funding, governance, program implementation, human resources, advocacy, and compliance with local laws. NGO policies help instill trust among donors, beneficiaries, and the public, emphasizing good governance, ethical conduct, and social and environmental responsibility. NGOs, with their extensive global reach and expertise, play a vital role in influencing policy-making at local, national, and international levels. They serve as a link between civil society and policymakers, organizing public opinion, supporting international cooperation, and holding governments responsible for the implementation of policies, making them important participants in the world of international affairs.

UNDEF was established by UN Secretary-General Kofi A. Annan in 2005 as a United Nations General Trust Fund to support democratization efforts around the world. UNDEF funding projects include empowering civil society, promoting human rights, and encouraging the participation of all groups in democratic processes. The main funding areas of UNDEF are community development, media, rule of law and human rights, tools for democratization, women, and youth.

What is the grant range?

Grants range from US$100,000 to US$300,000. The funding areas are:

• Support for Electoral Processes
• Women’s Empowerment
• Media and Freedom of Information
• Rule of Law and Human Rights
• Strengthening Civil Society Interaction with Government
• Youth Engagement

Who can apply?

The following institutions are eligible for UNDEF grant funding:

• Civil society organizations and Non-Governmental organizations are engaged in promoting democracy. These are anticipated to receive the bulk of the funding.
• Independent and Constitutional Bodies, including Election Commissions, Ombudsman Institutions, National Human Rights Institutions, and other independent governance bodies, for project proposals facilitating the inclusion of the voice of civil society.
• Global and regional inter-government bodies, organizations, and associations other than the United Nations for project proposals that strengthen the voice of civil society.

UNDEF’s priority is civil society organizations and Non-Governmental organizations, and the majority of UNDEF funds go to local civil society organizations, both in the transition and consolidation phases of democratization. The organization must be legally constituted.

Check the proposal guidelines here.

What are my chances?

UNDEF receives an average of about 2,000-3,000 proposals a year and only some 50 are selected.

In March 2023, UNDEF received 1,872 project proposals from organizations in 133 countries. Short-listed -34 projects for the 17th Round of funding totaling over $8 million. Proposals originated from Asia, Eastern Europe, Latin America, the Caribbean, Middle East and North Africa, and Sub-Saharan Africa, adding further to the growth the Fund has experienced since its creation in 2005 and bringing the total number of projects supported by the Fund to more than 970. Projects fall under one or more of six areas: the rule of law and human rights, youth engagement, women’s empowerment, support to electoral processes, strengthening civil society‘s capacity for interaction with government, and media and freedom of information.

How much is the grant funding?

NGOs can apply for funds ranging from $100,000 to $300,000 in size. The average project is $250,000. However, in the grants database, project funding ranges from $50,000 to $500,000. The likely explanation for this is that grant sizes can be negotiated after the acceptance stage. This does not mean applicants should initially ask for more or less money than the range listed on the application page.

How should I apply?

Online only!

Project proposals submitted by e-mail, regular post, facsimile, diplomatic or UN pouch, hand or courier delivery, or any other channel will NOT be considered. Neither will project proposals in any language other than English or French.

When should I submit?

Check the deadlines on the UNDEF Funding program. The funding call starts from November to December every year. Visit here to learn more: https://www.un.org/democracyfund/apply-for-funding

When will I hear if I made it?

The long lists produced by the team of independent assessors are examined by the Fund’s Programme Consultative Group which is later reviewed by the UNDEF Advisory Board. The final shortlist is submitted to the UN Secretary-General for approval. Usually in April or May, the final shortlisted are announced. A grantee should negotiate a contract that ends in August at the earliest.

UNDEF projects

To view summaries of existing UNDEF projects, go to: http://www.un.org/democracyfund/projects 

Things to remember!

UNDEF funds projects, not organizations. Your project proposal should be reasonably innovative and distinct from the activity you already conduct. Proposals are subject to a highly rigorous and competitive selection process. Projects fall under one or more of six main areas: 

• Women empowerment 
• Rule of law and human rights 
• Youth engagement 
• Strengthening civil society interaction with the Government
• Media and freedom of information 
• Electoral processes (focusing on elections scheduled for 2024 at the earliest)

Final Tips

The Fund’s Programme Consultative Group – comprising the Department of Political Affairs, the Department of Peacekeeping Operations, the Office of the High Commissioner for Human Rights, the UN Development Programme, the UN Development Fund for Women, and the UN Office on Drugs and Crime – in consultation with United Nations Resident Coordinators in the field shortlists the project so if you know them, it may help.

Not likely to be very confrontational with the government.

If in New York you can sometimes visit UNDEF.

Good luck!

Check out the UNDEF sample proposal here and increase your chance of getting fund: https://proposalsforngos.com/sample/sample-proposal-united-nations-democracy-fund-undef/ 

Monitoring refers to the systematic process of collecting, analyzing, and evaluating information or data to track and assess the progress, performance, or status of a project, program, process, or system. It is a fundamental component of effective management and decision-making in various fields, including business, government, healthcare, education, and development.

This stage involves collecting data about a project’s progress based on the assessment of predefined indicators. Indicators serve as benchmarks for the success of your projects in a given field. They convey information on the progress and desired outcomes of your project and play a crucial role in project monitoring and evaluation. Indicators must be distinct and clearly measurable. During an assessment, indicators compare the actual real-time project progress against planned or expected results. The main aim is to be able to see if project results are in line with expectations and initial aims, and if not, what adjustments are needed.

What is Evaluation?

Evaluation involves the systematic and in-depth analysis of data collected during the monitoring process to assess the overall impact, effectiveness, and efficiency of a project, program, or initiative. While monitoring is typically conducted internally by an organization’s staff to track progress and performance in real-time, evaluation often requires an external perspective, often provided by consultants or independent evaluators. This external perspective is sought to ensure objectivity, ideally providing unbiased insights and recommendations from a fresh perspective. Evaluation goes beyond just tracking data points, it delves into understanding the underlying causes, outcomes, and broader implications of the actions taken, helping organizations make informed decisions, improve strategies, and demonstrate accountability to stakeholders, donors, and the public.

Monitoring and Evaluation for NGOs

Monitoring and Evaluation (M&E) in the NGO sector involves the systematic collection and analysis of data to assess the progress, effectiveness, and impact of programs and projects. NGOs set clear project objectives, design M&E frameworks, collect data through various methods, analyze findings, and use these findings in future decision-making and improve project design and more effective allocation of funding. Beyond being required by donors, monitoring provides NGOs with valuable data that is informative and valuable for strategy development, future proposals, and public materials. M&E results are reported transparently to donors, beneficiaries, and stakeholders, fostering accountability and trust. It’s a cyclical process that promotes adaptive management, capacity building, and the long-term sustainability of initiatives, ultimately ensuring that NGOs fulfill their missions and make a positive impact on the communities they serve. In some cases, donors want their template to be used, so use their template if they say so. Otherwise, explain all the indicators that will be used to measure the simple or complex projects.

Figure 1: The project circle with the processes of Monitoring and Evaluation

Why is M&E So Important?

M&E plays a vital role in donor relationships and the operational activities of non-governmental organizations. M&E provides NGOs with the necessary tools to assess and improve the impact of their programs and initiatives. By systematically collecting and analyzing data on project outcomes and processes, NGOs can see whether they are achieving their goals and programmatic objectives. This information is invaluable for making informed decisions, refining strategies, and reallocating resources to maximize the positive impact on beneficiaries and communities. M&E helps NGOs identify what works and what doesn’t, enabling them to learn from both successes and failures and adapt their approaches accordingly.

Finally, M&E plays a crucial role in enhancing accountability and transparency within NGOs. NGOs often rely on funding from donors, whether it’s from governments, foundations, or individual supporters. These stakeholders require evidence of how their contributions are being utilized and the results being achieved. By implementing robust M&E systems, NGOs can demonstrate their commitment to accountability and show donors that their investments are making a real difference. This, in turn, can help secure ongoing funding and partnerships, ensuring the sustainability of their projects and the NGO’s overall mission. M&E enables NGOs to report their achievements accurately, build trust with stakeholders, and maintain a positive reputation in the highly competitive field of nonprofit work. To make the most of resources, actually, provide intended support to beneficiaries, and make an impact, M&E is essential to the work and efficacy of NGOs. It is an opportunity to learn, adapt and improve.

What is included in M&E?

Objectives and Indicators

Defining clear and measurable objectives for programs or projects and selecting relevant indicators that will be used to track progress and assess the achievement of those objectives.

Data Collection Methods 

Determining the specific methods and tools that will be employed to gather data, whether through surveys, interviews, observations, or other means.

Data Analysis

Employing quantitative and qualitative analysis techniques to interpret the collected data and evaluate program performance and outcomes.

Reporting

Creating structured reports to communicate M&E findings and recommendations to stakeholders, donors, beneficiaries, and organizational leadership.

Feedback Mechanisms

Establishing mechanisms for collecting feedback from beneficiaries, participants, and stakeholders to inform program improvements and ensure that their voices are considered in decision-making processes.

These five topics provide a foundational framework for implementing effective M&E processes within NGOs, enabling them to track progress, make informed decisions, and enhance the impact of their programs and projects.

How does M&E work?

Monitoring and Evaluation (M&E) works in stages to assess the performance, progress, and impact of programs, projects, or organizations. Here’s how it generally works:

Performance measurement

Performance management is one of the most popular tools in monitoring and evaluation. A project’s planning phase includes the definition of a number of indicators that are closely related to the project’s objectives and planned effects. These indicators have two values: the baseline value, which represents the current situation, and the target value, which represents the situation as it will be following the project. Milestones may also be established, depending on the project’s duration, to help determine whether it is progressing according to plan or not.

Creating the baseline study

The baseline study is crucial for project monitoring and should always be conducted before project activities start. The entire evaluation of the project will be based on the baseline study, and its quality will determine the outcomes of the evaluation process as well. Therefore, choosing the indicators and the type of data you want to incorporate and gather requires careful consideration.

The baseline study should generally be set up a little bit more broadly than you might think is essential. It is simple to add one or two questions while collecting data in the field, but it is difficult to return to the field once you realize you need that information. 

Additionally, it is more challenging to obtain the information once the project has begun because your actions may already have altered the data. Consider additional applications for the data you are gathering as well. Having a large data set is usually desirable so that you may use it for many things, like future applications, reports, and brochures. The better your representation, the more specific data you can assemble on your target population.

Defining indicators

A specific collection of indicators that you wish to achieve change or development on during the course of your project must be defined in order to measure the performance of a project or program. These indicators are typically displayed as a table and grouped together for various themes. If they were applied to a project, they would be used for reporting throughout the duration of the project.

Figure 2: Example of a table with indicators for the performance measurement (source: own representation) 

As you can see from the example in Fig. 1, performance monitoring of indicators allows your organization to track success and progress, making it simple to spot roadblocks and difficulties. It makes perfect sense to keep track of the indicators’ progress even if the donor does not ask you to submit progress updates.

If you are expected to report on milestones and you perform below expectations in some areas, you should always include a thorough explanation of the circumstances surrounding the underperformance. This offers you the opportunity to review the project’s setup, identify any issues early on, and indicate whether any changes need to be made.

How to write an M&E Report

A Monitoring and Evaluation (M&E) report is a formal document that provides an organized and structured presentation of the results, findings, and insights obtained through the M&E activities of a program, project, or organization. It serves as a comprehensive record of the ongoing assessment and evaluation efforts, helping stakeholders understand the performance, progress, and impact of the initiative being evaluated. M&E reports are valuable tools for informing decision-makers, funders, program managers, and other stakeholders about the effectiveness and efficiency of the program or project.

Writing a Monitoring and Evaluation (M&E) report is a crucial step in the M&E process as it communicates the findings, insights, and recommendations to stakeholders. Here’s a step-by-step guide on how to write an M&E report:

Understand Your Audience

Identify the primary audience for the report (e.g., donors, program managers, and board members) and tailor the content to their needs and interests. Begin with a title page, executive summary, and table of contents for clarity and organization. Divide the report into sections, which may include an introduction, methodology, findings, analysis, conclusions, and recommendations.

Brief Introduction

Start with an introduction that provides context about the program or project being evaluated, its objectives, and the purpose of the M&E report. Briefly describe your project in a clear and concise way. It should include the objective of the project and the purpose of the M&E report.

Describe the methodology

Explain the data collection methods used, including the tools, sample size, and data sources. Discuss any challenges or limitations in the data collection process.

Present findings and analyze results

In the report, include tables, charts, graphs, and narratives to present the data and findings visually. Clearly indicate the progress and outcomes against the predefined indicators. Highlight any notable trends, patterns, or insights from the data.

Provide an analysis of the findings, discussing what they mean in the context of the program’s goals and objectives. Identify factors that contributed to successes or challenges.

Conclusion and recommendation

Summarize the main conclusions that can be drawn from the findings. Discuss whether the program or project achieved its intended outcomes. It should cover the overall assessment and actionable recommendations based on the conclusions. These should be specific, practical, and linked to improving the program’s effectiveness. You can also include stories or case studies that illustrate the impact of the program on beneficiaries or communities.

Seek feedback

Before finalizing the report, seek feedback from colleagues or peers to ensure accuracy and clarity. Once the report is complete and reviewed, finalize it and distribute it to the intended audience.

Remember that the M&E report should not only provide a snapshot of the program’s performance but also offer actionable insights to improve the program’s effectiveness and impact in the future.

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Monitoring and Evaluation (M&E) is a systematic process that is crucial for non-governmental organizations (NGOs) to assess and enhance the impact of their programs and projects. M&E helps NGOs make informed decisions, learn from successes and failures, and demonstrate accountability to donors and the public. M&E reports serve as formal documents that present results, insights, and recommendations, aiding decision-makers in understanding program effectiveness and efficiency. This comprehensive process ensures that NGOs fulfill their missions, adapt to challenges, and make a positive impact on the communities they serve.

What is Open data?

Open data is unrestricted access to data that is made available to anyone who wishes to use, redistribute, or share it. This information is typically accessible online, in standardized formats, and without restrictions on its use. Here are some of the main characteristics of open data:

Accessibility: Open data should be easy to find and obtain through the internet, ensuring that anyone interested can access it.

Usability: Data should be provided in a machine-readable format, allowing users to manipulate and analyze it effectively.

Reusability: Open data should come with minimal or no restrictions on its use, allowing for various applications, analyses, and sharing.

Advantages of Open Data for NGOs

Open data in NGOs refers to the data spent by NGOs in the development sector. NGO data should ideally always be open, as real transparency means that data should be available for everyone to use and share. These data are shared by institutions, governments, CSOs, and agencies, so they are often more reliable than general open data as they come from an official source. These data can assist in achieving the Sustainable Development Goals (SDGs). Increasing transparency in the sphere of international development is a key step in improving the coordination, accountability, and effectiveness of civil society actors working in the poorest areas of the world. Transparency is important to let your supporters and donors know about your spending and organizational activities. These days, data transparency has become a part of NGO development.

Here are a few benefits of open data for NGOs:

Decision-making

NGOs rely on data to make proper decisions about their projects, strategies, and resource allocation. Open data provides a wealth of information that can help organizations better understand the communities they serve, identify critical issues and design more effective interventions.

Transparency and Accountability

Open data promotes transparency in both the public and private sectors. NGOs can use open data to hold governments and corporations accountable for their actions and policies. By making data available to the public, organizations can demonstrate their commitment to transparency and good governance.

Advocacy and Awareness

NGOs can access open data to support their advocacy efforts. Data-driven research and evidence can strengthen an organization’s case when advocating for policy changes or raising awareness about specific issues.

Resource Optimization

NGOs often have limited resources, and using them efficiently is essential. Open data can help organizations identify areas where their resources can have the most significant impact. For example, data on poverty rates, healthcare access, or education levels can inform targeted interventions.

Public Engagement

Open data can empower communities by giving them access to information about their own well-being. NGOs can use open data to engage with local communities, educate them about important issues, and involve them in decision-making processes.

Fundraising

Open data helps identify potential donors and grant opportunities. By analyzing donor’s giving patterns, NGOs can customize their fundraising strategies to match the interests of specific donors.

Using Open Data: 5 Common Mistakes Even Great NGOs Make

While open data offers numerous benefits to NGOs, there are challenges to consider, including data quality, privacy concerns, and the need for technical expertise. NGOs must ensure they have the necessary skills and resources to handle and analyze open data effectively. Sometimes, even the biggest NGO can get it wrong. Some of the common mistakes that NGOs make while using them are:

Looking at data in isolation

Using data can be very helpful, but it must always be put into context. If data is analyzed in isolation, it does not always show what we want it to show. This is why it is crucial to put data into context to make sure it can be understood. 

Not drawing the correct conclusions

These two points are closely related – when data is not seen in context and all variables are not taken into account, it can lead to the wrong conclusions. Information about donors and INGOs can give some degree of information, but it always has to be put into the bigger picture. If a donor has given to an area of work in the past, this does not necessarily mean that they will do so in the future. The website still needs to be checked, and NGOs still need to network to gather further intelligence. Open data can only be one indicator of many here.

Many NGOs also confuse causation with correlation

Correlation describes a relationship between two variables, i.e., when A is high, B is also high, or when C is high, D is low. Causation means that one indicator caused the other one to be high or low. Correlation CAN mean that there is also causation, but often it does not. Researchers have shown that in huge In many huge datasets, there are correlations between many indicators, but this does not necessarily mean that there is causation. To be able to make this distinction, NGOs need to understand the indicators thoroughly beyond just looking at their value.

Not visualizing data

When data is visualized, it is much easier for the viewer or reader to process it. Designing the results of the data analysis in a visually appealing form is key to really getting the point across and can really help in formulating the conclusions of the data analysis. Reading a text with many numbers is much harder than just looking at a graph.

Not using updated data

The development sector constantly changes, so it is very important to stay up-to-date and use current data. A change in political leadership can alter the spending of a government substantially. Thus, it is crucial that NGOs try to use the most recent dataset that can be found. 

Not understanding the data sources

To be able to analyze data and draw the correct conclusions, it is crucial that data users understand where the data came from. 

• Is it data published by the government? 
• Was it shared freely, or is it a requirement? 
• Who entered the data, and what agenda might they have?

All these factors should be considered when working with open data.

The open data source or portal for NGOs

There are many open data sources. These sources facilitate access to and reuse of development information. Some of the important data portals to access open data for NGOs are listed below:

IATI

IATI provides open NGO data in a standardized manner for everyone to share, use, analyze, and work with as needed. IATI, the International Aid Transparency Initiative, aims to increase the transparency and openness of resources flowing into developing countries through an online reporting system used by governments, multilateral institutions, private sector actors, and CSOs. Many organizations that share open data only publish their datasets at the end of the year, but IATI provides real-time data, which can be much more accurate and reflect recent changes and developments. The platform is refreshed daily to reflect any new information that publishers may have uploaded.

OECD Open Government Data

In addition to IATI, the Organization for Economic Cooperation and Development (OECD) is also a valuable source of information relating to open data. By making public data from the government accessible to anyone, the Open Government Data (OGD) movement encourages openness, accountability, and value creation. Governments encourage the development of new businesses and cutting-edge, citizen-centric services by promoting the usage, repurposing, and free sharing of datasets.

Humanitarian Data Exchange (HDX)

Humanitarian Data Exchange (HDX) is an open platform for data exchange between organizations and situations. The purpose of HDX is to make humanitarian data accessible and useful for study. Up until now, over 250 countries and territories have accessed the datasets.

AIDA 

AIDA aims to unlock the potential and richness of open aid data by providing tooling for anyone (with no IT skills required). AIDA publishes open aid data, manages information, uncovers new insights, analyzes data, and visualizes trends. It is committed to guiding global organizations in their journey towards data-driven decision-making.

AidStream

In accordance with the International Aid Transparency Initiative (IATI) Standard, AidStream is a method for releasing aid data. Organizations that distribute or spend resources can publish information about their development and/or humanitarian activities using AidStream.

Publish What You Fund

Publish What You Fund envisions a society in which information on aid and development is open, accessible, and used for sound judgment, public accountability, and long-lasting change for all citizens. They work to ensure that all aid and development data is transparent, available, usable, and used.

Open Data Network

The Open Data Network is dedicated to using the potential of data to enhance the environment in which we live. The network supports the development of good practices, protocols, and standards for open data. It is a key online location for research across several fields, including civic app creation, benchmarking, and best practices for open data.

World Bank Open Data

World Bank Open Data provides free and open access to global development data. The World Bank is aware that accountability and openness are crucial to advancing development and fulfilling the Bank’s mandate to fight poverty. The Bank’s dedication to transparency is also motivated by a goal to promote public ownership, partnership, and participation from a variety of stakeholders in development. The World Bank’s first action as a knowledge institution is to freely and transparently share its information.

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NGOs can unlock the potential of making more data-driven decisions and responding faster and more efficiently to change by analyzing and visualizing open data. Open data is a valuable resource for NGOs, enabling them to make data-driven decisions, enhance transparency, and collaborate with stakeholders more effectively. By harnessing the power of open data, NGOs can improve their impact and contribute to positive social change on a global scale.

Grants.Gov is a common website for federal agencies to post discretionary funding opportunities and for grantees to find and apply to them.

Federal funding is designed to support a wide range of initiatives and activities that align with the government’s goals, policies, and priorities. Federal funding can come from various federal agencies, departments, and offices. Prior to initiating the grant application process, it is important to acquire a comprehensive understanding of the grant’s eligibility requirements. These requirements are established through legislative frameworks and federal agency benchmarks, serving as definitive criteria for accessing funding opportunities. You need to be eligible to apply for these grants.

How to Determine Your Eligibility for Federal Funding Possibilities

Here are some checklists to assist you in locating potential government funding sources:

Know Your Applicant Entity Type

Understand your entity type. Are you registered as a nonprofit organization? A township or municipal entity? A research laboratory affiliated with a university? By recognizing your entity type, you can strategically streamline your pursuit of potential funding avenues.

Search by Keyword, Then Narrow Your Results

Engaging in Grants.gov searching constitutes a vital step in the process of determining an entity’s eligibility for securing funding. Start by visiting the Grants.gov Search page, and initiating a keyword-based exploration. Strive for specificity in your keyword selection. After conducting the keyword search, proceed to refine outcomes on the left-hand segment of the interface. This refinement involves opting for specific attributes such as Funding Instrument Type, Eligibility, or Category. For instance, you might choose “City or township governments” under the Eligibility category, which in turn streamlines the available funding opportunities exclusively for city or township governments. (Please note: The numerical value within parentheses signifies the count of funding opportunities corresponding to this particular entity’s eligibility classification.) Concluding the process, it’s advisable to preserve your search configuration. This action ensures that you receive timely notifications concerning novel funding opportunities adhering to the specified criteria as they become available in subsequent instances.

Get into the Details of Each Funding Opportunity

It’s time to carefully analyze each funding opportunity’s official eligibility requirements once you have found a collection of funding opportunities for which you appear to be eligible. The funding opportunity’s eligibility requirements may be listed in the Eligibility section of the Grant Synopsis. But often the requirements are discussed in much greater detail in the official funding opportunity announcement (FOA) document created by the federal grant-making agency. On Grants.gov, this document is usually found under the Related Documents tab. You can also use the Link to Additional Information field on the Synopsis Tab.

Reach out to the Grant Contact Person

Contact the federal agency point of contact listed in the Funding Opportunity Announcement (FOA), if you still have any questions about eligibility. There are two places where contact information can be listed by the grant-making agency:

Under the Synopsis tab, in the Additional Information section, look for the Grantor Contact Information field (pictured below).

Under the Package tab, click the preview link. Look for the Agency Contact Information listed in the pop-up window under the Opportunity Package Details section.

You can start thinking about and creating the application once you are certain that you are qualified to submit an application for the award.

Also, check out this short video that gives a simple explanation of how the application process works for organizations applying for federal grants through Grants.gov.

How do I check the status of my submitted grant application on Grants.gov?

Following the submission of your grant application, you have the option to monitor the status of your submitted proposal. If you have the grant tracking number for the submission, you may check the status of the submission using the steps below.

1. Go to www.grants.gov 
2. Toward the top of the page, place your cursor over the Applicants tab. From the drop-down menu, click on the Track My Application link.
3. Enter the tracking number and click on the Track button. 
4. Detailed information about the status of your submission will be displayed.

As an Applicant, you have the option to view the status of any grants you have submitted with your Applicant account by completing the steps below.

1. Go to www.grants.gov
2. In the top-right corner of the page, click on the Login link.
3. Log into the Applicant account used to submit the application.
4. From the menu on the left, click on the Check Application Status.
5. On the  Check Application Status page, click on the Search button. You may enter search criteria and change the date range if needed.
6. Results will be displayed based on the entered search criteria. Locate the submission you want information on and review the Status column. If the submission has been rejected, you can click on the Details link under the Actions column on the right to view the reason(s) for rejection. You can also view related submissions by clicking on the Related Submissions link, when applicable.

Your submission should be in one of the following statuses:

Processing, Queued, or Packaging Process: This status indicates that the application has been received but has not completed the validation process. This process may take up to 48 hours.

Validated: The application has been received and validated without errors. The offering agency has not downloaded the application.

Received by Agency: The offering agency has downloaded the application for review. This is the last status update received by Grants.gov. Please contact the offering agency for status updates in the future.

Agency Tracking Number Assigned: The offering agency has assigned an agency-specific tracking number.

Rejected with Errors: The application has been rejected with errors by Grants.gov. The AOR will receive an email with the rejection error.

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Getting a federal grant is tough due to intense competition. There is no guarantee that you will be awarded a grant, even if you apply for one. If you don’t get a grant, though, you should try to figure out why so that you can make your next application better. The feedback on your proposal could be a useful teaching tool. REMEMBER that grant fundraising is a cycle, and cycles always repeat. Keep in mind that a huge number of organizations compete for federal funding, and many organizations must submit multiple applications before receiving a grant. You can increase your chances of being funded next time by getting comments on your application. Keep trying and learning until then.

Good luck with your application!

Endowments are funds put into long-term investments to grow the overall size of the endowment and generate annual income for the institution. In other terms, an endowment fund is also known as a “Principal”. Endowments are meant to last the lifetime of the institution, so there are usually limits on how much may be withdrawn from the endowment per year. Endowments are typically available to large institutions with many individual donors, such as universities, museums, hospitals, and religious institutions.

The endowment funds for the NGOs are sustainable financial resources that are invested to generate income in the future. An endowment for NGOs is a permanent fund that is set up to provide ongoing financial support for the organization’s mission and activities. This income can then be used to support the ongoing operations, programs, and projects of the NGO. Endowments are typically created by donors who contribute a substantial amount of money or other assets to the organization, with the stipulation that the principal amount is invested, and the income generated from the investments is used to support the organization’s work.  However, it can be very difficult for NGOs to get funding for an endowment, especially from institutional donors.

Endowment funds play a vital role in the event of any emergencies or to maintain the consistency of the organization. Establishing an endowment fund can provide long-term stability and financial security, allowing the NGO to focus on its mission without being solely dependent on short-term donations or grants.

What are the types of endowment?

Restricted Endowments

The restricted endowments are the funds that are earmarked for limited use. These earnings are spent as per the donor’s specifications. In other words, these funds can be spent for the program or project of the organization but not for administration or organizational expenditures.

Unrestricted Endowments

Unrestricted funds are not earmarked or designated for a specific purpose or project within a nonprofit organization. Organizations may use these funds so long as they meet the aims and objectives of the group outlined in their governing document. In comparison to the restricted funds these funds are less challenging as nonprofits are not bound by limitations to spend the donation only on specific projects.

Term Endowments

Term endowments are allowed to be spent according to the donor’s specified time period. These funds are set for a certain period of time to support a specific purpose or cause over a defined period of time, usually for a set number of years or until certain conditions are met.

Quasi Endowments

Quasi-endowments are donations made by any organization or an individual, which are very typical. This fund is also known as the board-designated fund, which is a type of financial arrangement commonly used by NGOs and other nonprofit organizations. It’s not a traditional endowment in the sense of being permanently restricted, but it serves a similar purpose of providing financial stability and support for the organization’s mission.

How can your NGO create an Endowment Strategy?

Although NGOs with an endowment fund help to secure funding to run their program activities, it should be careful that creating and managing an endowment fund is not an easy task. It requires a lot of time, proper planning, a long-term perspective, and collaboration with financial experts. It’s an effective way to ensure the sustainability and growth of an NGO’s efforts to create positive change in the world. Of course, the size of the NGO does not matter when creating an endowment fund, but there should be a proper strategy when establishing one.

NGOs with an endowment fund help maintain their image among donors. It makes the donors believe the NGO is fulfilling its mission. This type of reputation among donors helps the NGOs attract other donors as well. But sometimes it can be tricky and lead the donors to believe the NGO no longer requires the fund, but the NGO should not stop seeking funds for fundraising activities. NGOs use the endowment funds depending on their program nature, restrictions, general operating budget, funding programs, and other organizational expenses.

Here are some points on how an NGO can create an endowment strategy:

Clear goals and visions

NGOs need to set a clear goal and path for their organization’s mission. The past organizational activities need to be transparent and clear so that donors do not hesitate to support you. Networking with donors is an important factor in receiving endowment funds for NGOs. The donors are keen to connect with an organization that has clear visions and goals.

Allocation of funding

If an NGO does not have a professional financial advisor, then hiring one is a must because a clear financial plan and strategy will support the mission of the organization. The clear allocation of funding needs to be recorded in the financial budget.

Develop investment policy

NGOs need to create an investment policy that outlines the guidelines for investing in the endowment fund’s assets. Consider factors such as risk tolerance, expected returns, asset allocation, and ethical considerations.

Risk management

Assess the potential risks associated with your investment strategy. Diversify your investment portfolio to mitigate risks and ensure stable long-term growth.

Fundraising strategy

Develop a proper fundraising plan to generate the initial funding for your endowment. This includes soliciting the major potential donors, networking with them, launching specific campaigns, and hosting events.

Transparency and Reporting

Implement a structured communication system that consistently updates donors on the endowment fund’s performance, investment strategy, and its direct influence on the organization’s operational activities. By transparently sharing information about financial growth, prudent investment decisions, and the tangible outcomes achieved through the fund’s support, donors will gain insights into the enduring impact of their contributions, fostering trust and reinforcing their engagement with the organization’s mission.

NGO endowment policy sample

An NGO endowment policy refers to a financial strategy where an NGO sets aside a specific sum of money or assets in a dedicated fund that generates interest or investment income. This income is used to support the organization’s mission and activities over the long term, ensuring its sustainability and minimizing dependence on external funding sources. Each NGO’s endowment policy varies from the others. It should be developed in consultation with legal and financial experts to ensure it complies with regulations and meets the organization’s specific needs and goals.

Here is an endowment fund policy of Chesapeake Bay Trust for reference:

[embeddoc url=”https://philantropia.org/wp-content/uploads/2023/08/Endowment-Policy-2.pdf” download=”all” viewer=”browser”]

Endowment funds are crucial for any NGO, as these funds help the organization generate income for future projects. It is basically not sufficient to cover all the program activities, but it definitely supports the NGO’s growth. These funds should not be spent for other organizational purposes; they should be invested so that they work as an income source for the organization. Charitable organizations that have endowment funds build an investment strategy and run their programs smoothly without any hindrances.

Before digging into their roles and responsibilities, let’s first understand the meaning of advisory board, and board members:

What is an Advisory Board in an NGO?

This advisory board consists of experts formed to give advice and support to an organization’s governing board or executive staff. A single organization can have different advisory board members playing their roles as a support system. The advisory board has the most experience and working knowledge so they make a decision for the NGO. An NGO must choose the advisory members carefully, as they need to be trustworthy. They should be able to make impactful and valuable decisions that are right for the organization. The advisory board serves as the guiding force behind an organization’s success, offering a combination of strategic vision, practical expertise, resources, and leadership that leads the non-profit toward its mission-driven goals.

Types of an Advisory Board in an NGO:

Advisory board members in an NGO come in various forms. It may differ from individual to individual. These members are assigned to provide unique expertise, guidance, and support to the non-profit. Here are some common types of advisory boards you might find in an NGO:

Professional expertise advisory board: This type of advisory board consists of individuals that suggest professional skills, and techniques. Members offer advice and insights based on their skills and specialized knowledge, such as legal, technical, and financial expertise.

Mentorship and Leadership Development Advisory Board: This advisory board is focused on fostering leadership development within the non-profit. Members provide guidance, mentorship, and support to emerging leaders and staff.

Community Engagement Advisory Board: A community engagement advisory board comprises representatives from the local community or target beneficiary group. These members provide insights into community needs, preferences, and perspectives to ensure the nonprofit’s programs and initiatives remain relevant and effective.

Policy and Advocacy Advisory Board: This advisory board focus on shaping public policy, advocating for legislative changes, and raising awareness about key issues by playing a pivotal role in advocating for crucial legislative changes, and arranging strategic initiatives to effectively raise awareness about key societal issues. Through collaborative efforts and informed insights, the advisory board endeavors to drive impactful transformations, influence decision-making processes, and foster a broader understanding of matters of significance.

Fundraising and Development Advisory Board: A fundraising advisory board is composed of individuals with experience in fundraising, donor relations, and resource mobilization. This advisory board assists in developing effective fundraising strategies and expanding the nonprofit’s donor base.

Strategic Planning Advisory Board: A strategic planning advisory board supports the nonprofit develop long-term goals and plans. Members contribute insights into market trends, competitive landscape, and potential growth opportunities.

What is a board member in an NGO?

The board members in an NGO support the setting of the staff and the implementation of each individual’s roles and responsibilities. As the staff is responsible for the day-to-day operations, the board members work as the ultimate authority person that has the right to make the decisions on any staff, and individuals. A board member in a non-profit organization is a group of individuals responsible for overseeing the organization’s activities, governance, and strategic direction. The board members are concerned with the NGO’s long-term sustainability. It plans for succession, monitors the organization’s financial activity, and makes strategic decisions to ensure its continued impact.

What do Board members do in an NGO?

Governance and Leadership: The Board is the ultimate governing authority of an NGO. They are endowed with the responsibility of offering visionary leadership, and the board members play a pivotal role in establishing overarching policies that serve as the cornerstone of the organization’s activities. It provides leadership, sets policies, and ensures that the non-profit operates in accordance with its mission, values, and legal requirements.

Financial Oversight: The board members monitor the NGO’s financial health, approve budgets, and ensure proper financial controls are in place. It also reviews financial reports and audits to maintain transparency and fiscal responsibility.

Evaluation of Impact: The board members oversee the measurement and evaluation of the NGO’s impact and outcomes. It ensures that the organization is achieving its intended results and making a positive difference. 

Resource Development: The board members play a significant role in developing the organization’s resources in order to utilize them in the right way. Members may contribute financially and leverage their networks to secure funding, grants, and donations for the NGO’s work.

Risk Management: The board members assess and manage risks that may impact the NGO’s operations, reputation, and sustainability. It develops strategies to address potential challenges and uncertainties. Employing a multifaceted approach to risk management, the board members identify, analyze, and quantify the potential risks of nonprofits and try to develop a solution to them.

What is the vital role of Advisory and Board members in a nonprofit?

In the non-profit sector, advisory boards help to fundraise and maintain a relationship with the partners, and donors. The advisory board members create strategic plans and policies. Later on, these plans are divided among the relative staff members and implemented accordingly. They focus on the specific areas of NGOs and offer advice. Whereas, the board members are those members who steer the organization’s workflow without performing a day-to-day task. These members focus on the strategy-making aspects of the organization. Advisory board members offer specialized insights, contributing valuable knowledge in areas such as finance, law, technology, and marketing. They provide strategic direction, shape initiatives, and expand the non-profit’s network through their connections. Moreover, they act as advocates, amplifying the nonprofit’s reach and impact. 

On the other hand, the board members hold governance responsibilities. They ensure legal compliance, make critical decisions, and safeguard the organization’s financial health. Board members also hire support, and evaluate the executive director, driving effective leadership. Both advisory and board members collectively enhance the nonprofit’s credibility, strategic vision, and operational efficiency, propelling it toward fulfilling its mission and making a meaningful difference in the community.

How do Advisory Boards and Boards of Members Drive Nonprofit Success?

Advisory boards support NGOs in decision-making. Their decisions are often taken on board as they are critical and important. The specific direction and the right decision-making acts are needed to be fulfilled by the key members of the organization, which is done by the advisory boards. Advisory boards and boards of members are instrumental drivers of nonprofit success, wielding their expertise and strategic guidance to propel an NGO toward its missions. Advisory boards contribute specialized insights, infusing programs with innovation, industry best practices, and diverse perspectives. By leveraging their networks, the advisory members expand the organization’s reach and forge valuable partnerships.

Meanwhile, boards of members, with their legal responsibilities, ensure sound governance, financial accountability, and ethical operations. They guide the organization’s strategic course, set measurable goals, and oversee executive leadership. Both advisory boards and boards of members cultivate a culture of excellence, nurturing leadership, fostering innovation, and enhancing impact. Their collective dedication empowers organizations to flourish, making positive and lasting contributions to the communities they serve.

Concluding with the essence of the article

Boards of members assume a comprehensive and legally accountable role, encompassing strategic decision-making, legal compliance, financial oversight, and executive leadership. This includes crucial responsibilities such as hiring, firing, and monitoring the executive director to ensure alignment with the nonprofit’s mission and goals. 

Advisory boards offer expert guidance and recommendations, contributing to the nonprofit’s success through their specialized knowledge and insights, but do not possess the same formal legal responsibility and authority as the boards of members. 

Advisory boards and boards of members are integral parts of an NGO, that work together to support the NGO’s missions and success. The formation of advisory boards is critical. The boards of members should conduct annual reviews of their advisory board’s objectives and assess the suitability of the members to ensure necessary adjustments are made as needed.