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.Read Online Request a hard copy
See our most recent research on donor approaches to overheadsGo to the discussion paper
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
Indirect costs for local and national partners: UN agencies and INGOs policy and practice mapping
These tables summarise the current policies and practices of several UN agencies, international non-governmental organisations (INGOs) and Red Cross Red Crescent organisations around the provision of overheads or indirect costs for local and national partners.
Donor approaches to overheads for local and national partners
This paper, produced by DI in partnership with UNICEF, summarises donors’ current indirect cost policies and perspectives on the issue of overhead allocation to local actors, and sets out opportunities and barriers to change.
Tracking humanitarian funding to local actors: what we’ve learnt
In this blog, we explore the latest data and practices on tracking humanitarian funding to local actors, including the challenges around understanding whether 'localisation' of funding is happening and how to overcome them.