Funding Mechanisms for Civil Society

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Main Results

UK DFID • On average, CSOs received an estimated US$56 million per year for HIV and AIDS during the 2004–09 period, which amounted to about 10 percent of DFID’s total assistance for HIV and AIDS. • These amounts were estimated from a recently created DFID database of projects. CSO funding for HIV and AIDS was estimated from the funding received by CSOs that were first-line recipients with AIDS and whose project showed HIV and AIDS as a principal or significant component. In aggregate, donor funding for the community response is likely to exceed US$690 million per year on average. As shown by table 2.2, the funding share going to national CSOs varies greatly across donors. However, it would be incorrect to draw inferences from these differences as the estimated finding is based on proxies that may underestimate the total funding that is available for the community response. In the case of the World Bank, for example, funds are first disbursed to governments, which, in turn, transmit them to CSOs. The Global Fund and DFID also use this system of “indirect” funding, and it may exist in the case of PEPFAR. However, due to data limitations, it was not possible to estimate its size for DFID and PEPFAR. As the estimated funding from DFID, and PEPFAR takes into account only the “direct” funding that reaches national CSOs, it would be misleading to compare the allocation of donor funds.

Other Funding Flows In addition to the financial aid provided by governments, there are other sources of funding. These include international NGOs that may be working with communities and funding flows coming from individuals, foundations, and charities in high income countries that are directed to funding specific activities in HIV affected countries. The available data suggest that in aggregate these funds amount to about US$600 million per year (UNAIDS 2010) with most of the funding coming from the United States. They are used to finance research and international organizations such as GAVI (Global Alliance for Vaccines and Immunisation), international NGOs, or specific programs in countries such as Brazil, China, India, Mexico, the Russian Federation, and South Africa. While in aggregate the flows reaching local communities in the countries affected by HIV and AIDS may be small, these funding streams are important for small NGOs and CBOs, as shown by country studies (appendix B).

Country Funding Profiles Another way to get a sense of the magnitude of donor funding granted to CSOs, as well as to understand how this funding is used, is to look at several country case studies. The four countries reviewed in this study—Kenya, Nigeria, Peru, and India—present contrasting situations in terms of CSO involvement and funding.

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