Switzerland spreads NGO funding to ‘increase competition’

The SDC has a presence in many countries, including here in Sri Lanka. Keystone / Anthony Anex

The Swiss Agency for Development and Cooperation (SDC) says it will spread its financial contributions to NGOs and umbrella groups to a wider array of organisations. Funding will be capped for individual NGOs to “help increase competition and boost innovation.”

In future the SDCExternal link will limit funding of individual NGO and umbrella group projects to CHF8 million ($8.1 million). This means that from 2021 “contributions to the international programmes of individual NGOs will be limited to 30%, while federal contributions to the international budgets of umbrella organisations, cantonal federations and NGO alliances will be capped at 40%,” read an SDC statementExternal link on Tuesday.

The SDC cooperates with such projects that “help the poorest and most vulnerable communities” of the world. “Swiss NGOs bring specific expertise, experience of key areas or operations and local knowledge to international cooperation, thus contributing to [SDC’s] success,” the government agency said.

The SDC currently contributes CHF120 million (around a third of its total budget) to the international programmes of some 40 Swiss aid agencies, umbrella organisations and federations. The ten largest agencies receive 73% of the budget, with the remaining 27% distributed to approximately 25 other partner organisations.

NGOs must meet operational management, accountability and risk management quality criteria and be accredited with the Zewo quality sealExternal link to receive SDC funding.