Strengthening local fundraising and mobilising support

The Funding Working Group came together on the 15^th of May 2025 to share insights, challenges, and updates related to funding practices, local fundraising, and mobilising support. With growing pressure from shrinking international aid, the meeting served as a valuable platform for members to exchange knowledge on how to better support local partners in securing sustainable funding and assuring support on the local level.

Key-take-a-ways

• There is a growing potential for local support but there are huge differences between countries; India and Kenya for example offer relatively favorable conditions for local fundraising while for instance Burkina Faso and Bangladesh face significant limitations in generating local funds.

• It is most easy to generate funds locally for practical projects such as hospitals, community centres, schools. While the practical, project-based funding is common, members agreed that capacity-building projects struggle to attract local resources.

• Requiring partners in middle and low income countries to provide co-funding for projects is considered a good practice. Sometimes this co-funding maybe provided in-kind with work or materials. But funders have difficulties with administering such contributions.

• When funding development projects often liquidity gaps occur while working with small organisations, especially when a reserve fund is kept by the funder to assure reporting. A co-funding requirement adds to the strain. The working group reflected on how different organizations transfer and manage funds, with some opting to transfer full amounts upfront, despite the risks.

• The group emphasized the importance of blending government, private, and local resources for more resilient project funding. As traditional aid models shift, creative and context-sensitive funding approaches will be essential to sustain civil society efforts across regions.