Funding for civil society

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Funding increases

The White Paper recognises the positive role that both UK and Southern civil society organisations play in development and seeks to "develop broader and deeper partnerships" between DFID and CSOs, acknowledging that the UK Government should "build on Britain's world class non-government sector" (1.37). This is demonstrated strongly in the doubling of non-humanitarian central funding for civil society to £300 million a year by 2013 (7.44), £50 million of which will be available by April 2010 (7.49).

Bond called for the UK Government to ensure support for civil society organisations (CSOs), and real commitment in both political and financial terms. The White Paper is clear that today's challenges require the UK Government "to reconsider how we can build a more strategic partnership with civil society". This is good news if realised in the months and years ahead.

The front-loading of this increase is in recognition of the challenges CSOs face in the current economic climate, something on which Bond has been in regular dialogue with DFID over the past nine months. This £50 million will be in the form of extended partnership agreements and Development Innovation Funding.

Although the proportion of the UK aid budget allocated to NGOs remains relatively low, this is a positive and significant move in the right direction.

PPAs

DFID's existing partnership agreements (PPAs) will be extended to at least five new UK partners and ten Southern organisations (7.48). This is a welcome step towards the strong sense of partnership and open dialogue between UK Government and NGOs that Bond has called for. It also reflects recognition for the high quality of UK NGOs' work, as well as the importance of building supportive, long term partnerships with Southern CSOs, something that Bond has strongly advocated for.

Performance assessments

DFID is seeking "a clearer mutual understanding of rights and responsibilities between DFID and civil society organisations" and will be looking to base funding allocations to CSOs on "more rigorous performance assessments - considering both the capacity of organisations to deliver and their proven impact on poverty" (7.46).

Bond is already working to support UK NGOs in enhancing their capacity to prove and improve their effectiveness and we will also continue to lobby and dialogue with DFID to ensure its grant-giving practices do not hinder good development practice. We welcome DFID's commitment to "improve arrangements with CSOs to ensure better performance and results" and will support that process in relation to our member NGOs.

Bond welcomes DFID's commitment to "help partner governments to improve the way in which they work with local and international civil society with support from the Charity Commission" (7.48). Good working relationships and enabling legislative and operational environments are vital to ensure effective development.

Humanitarian response

Bond welcomes the commitment of "at least £5 million a year in new core funding to NGOs for humanitarian action" and notes that this will be in addition to existing ongoing funding arrangements for NGOs' response to humanitarian emergencies. Bond welcomes that DFID will "work to ensure that our funding enables NGOs and the Red Cross to continue to operate alongside the UN" (6.66).