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 Download a PDFHumanitarian donor and intermediaries’ ICR sharing practices vary widely. Sufficient overhead provision ensures effective programme delivery and localisation.
Read the executive summaryChapter One
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 oneChapter Two
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 twoChapter Three
Local and national partners support harmonised overhead policies where donors provide unrestricted funding that covers both direct and indirect project costs.
Read chapter threeChapter Four
Fair overhead allocation is contingent on trust and advocacy. International organisations must overcome financial and regulatory barriers to enact change.
Read chapter fourappendix one
A comparison of current INGO, UN agency and Red Cross Red Crescent overhead allocation practices.
Read appendix oneappendix two
Thank you to those who contributed to and supported the publication of this report.
Read appendix two
These tables summarise the current policies and practices of donors, UN agencies, international non-governmental organisations and RCRC organisations around the provision of overheads or indirect costs 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.
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.