Introduction
The main flow of private development cooperation for NGOs is the co-financing scheme (MFP) in which the Dutch government assigns a percentage of the total ODA-budget to six co-financing organisations (CFOs): Cordaid, ICCO, Hivos, Novib, PLAN and Terre des Hommes. The current percentage is 11% but the Ministry can increase the percentage up to a maximum of 14%. The ultimate amount allocated for grants will depend on the number and quality of the applications. The central objective of this programme, and of the participating organisations, is to achieve structural poverty alleviation through the three interconnected strategies of direct poverty alleviation, civil society building and advocacy. The CFOs work on various themes and sectors on several continents and with an extensive number of partner organisations.
The scheme was originally restricted to four CFOs but this changed in 2002. Since then new organisations can apply for CFO-status. Applicants must be active in the area of poverty reduction in several countries and on several continents, and within a variety of themes or sectors. They must also have a solid rooting in Dutch society. New organisations are no longer required to be ‘adding’ to the work areas already carried out by the existing CFOs. Every four years the policy and management of all participating organisations will be evaluated equally, on the basis of strict and transparent quality criteria. The new policy framework heavily emphasises strategic cooperation between the CFOs and other NGOs, especially in the private sector. Another new feature is that policy-influencing activities can be funded within the MFP.
The CFOs collaborate in the Co-financing Consultative Body (GOM). Under this umbrella, the co-financing agencies gear their activities, jointly lobby politicians and inform the public at large. GOM also acts as a channel for consultation with government bodies about development matters. Apart from the budget allocated by the Dutch government, the CFOs also receive co-financing from the European Community. Hivos, Novib, PLAN and Terre des Hommes also raise funds from the general public, while Cordaid and ICCO receive funds from their constitutive church communities. More than 6,000 NGO activities in developing countries are financed through the co-financing scheme annually.