Overhead cost allocation in the humanitarian sector
Development Initiatives, in partnership with UNICEF and Oxfam, conducted this research on overhead allocation in the humanitarian sector on behalf of the IASC Results Group 5. This work informed the development of guidance which has now been endorsed and published by the IASC.
Humanitarian donor and intermediaries' ICR sharing practices vary widely. Sufficient overhead provision ensures effective programme delivery and localisation.Read the executive summary
There is no harmonised approach to indirect cost recovery. This study aims to identify areas of good practice to inform a guidance note on overhead allocation.Read chapter one
What are organisations’ current overhead cost allocation practices?
INGOs and UN agencies employ a range of ICR sharing models. Some are now developing policies to ensure fairer provision of overheads to implementing partners.Read chapter two
What does good overhead allocation practice look like for local and national partners?
Local and national partners support harmonised overhead policies where donors provide unrestricted funding that covers both direct and indirect project costs.Read chapter three
Equitable overhead provision: barriers and opportunities for change
Fair overhead allocation is contingent on trust and advocacy. International organisations must overcome financial and regulatory barriers to enact change.Read chapter four
Mapping of INGOs and UN agencies
A comparison of current INGO, UN agency and Red Cross Red Crescent overhead allocation practices.Read appendix one
Thank you to those who contributed to and supported the publication of this report.Read appendix two
Global humanitarian assistance: funding and need
Four interactive charts let you explore in-depth global levels of need, the largest donors of international humanitarian assistance and how they deliver assistance to recipients.
Funding for effectiveness and efficiency
Learn about progress on key Grand Bargain commitments, such as direct funding to local and national actors, cash and voucher assistance and flexible funding.
Supporting greater transparency of humanitarian financing
Ensuring that timely, transparent, harmonised and open high-quality data on humanitarian activities is being published and used to improve operational effectiveness and deliver better results.