Local NGOs: The Road to Self-Sufficient Funding in the Age of Localisation

The global development localisation process aims to ensure that those from marginalised and underrepresented groups have a genuine space to influence, lead, and drive initiatives from priority setting to implementation and evaluation.

While localisation discourse has predominantly focused on power dynamics and delivery mechanisms, there is another area that requires attention: funding.

The challenge? Equipping local NGOs with the tools to position themselves to attract decentralised funding.

Many local NGOs have traditionally functioned as sub-partners, predominantly relying on consortium partnerships with larger international or regional entities. Certain grant frameworks and INGO models have enabled funding, but, to date, business development teams in western head offices or regional hubs have managed much of the grant prospecting and bid development process. Teams frequently visit local offices for information or workshops, but local partners are typically excluded from bid design, sometimes only getting a preliminary proposal review.

Localisation has to be more than a power shift; it is also about equipping local entities with the tools, knowledge, and confidence to stand at the forefront of development, including owning funding pursuits. 

At Athari, we work with our clients to confront this challenge head-on as part of their commitment to localisation. So, how do we advise local NGOs to attract funding? 

Your next fundable project is in the data

Beyond gathering field data, it is about turning this information into actionable project ideas.

With the right design toolkits, local teams can use community assessments and endline surveys to ideate. The goal? To quickly identify challenges based on patterns in the data, design context-relevant actions and potential project solutions. This readiness ensures that teams can respond promptly when a funding opportunity arises.

Proposal alignment

A proposal is not just paperwork; it showcases an organisation's technical depth.

Working with local NGOs, we advise crafting technical proposals that match the project's objectives and donor's vision as well as align with local development plans from national to district levels. This approach requires a thorough understanding of the project's intention and preliminary stakeholder engagement.

Stand by your costs

Effective budgeting goes beyond mere figures; it demonstrates an organisation's financial acumen and contextual understanding.

Local NGOs must consistently gather and benchmark base costs through their field teams. By doing so, local finance staff can craft budgets that meet donor transparency expectations as well as ensure implementation feasibility throughout the project's lifespan. 

Observe, position, repeat 

It is essential to see beyond immediate grants and grasp the broader funding landscape.

This means reviewing donor priorities, anticipating upcoming opportunities, and strategically positioning the organisation. Local NGOs should be proactive, staying observant of funding trends, engaging with contacts, and forecasting agenda shifts to stay ahead.

Local organisations can enhance their funding prospects and demonstrate technical expertise by excelling in these key areas. While this approach offers guidance, it is not a guaranteed solution. It may not ensure funders' attention, but it's an important step forward.