Guiding Principles for Better Management and Quality of Earmarked Funding

In May 2015, the Senior Level Donor Meeting on Multilateral Reform (SLDM) endorsed a set of guiding principles for Better Management and Quality of Earmarked Funding.

Recognizing that donors have various choices for providing funding to Multilateral Organisations (MOs) and that the SDGs will require diverse forms of funding, donors should give preference to funding arrangements that align with the mandate and operations of MOs - which is particularly the case for core funding. In cases where earmarked funding is considered, the following principles should guide donors' action:

a. Think twice before you provide earmarked funding - ensure that earmarked funding is the best approach to achieve expected results in the case concerned.

b. Improve the quality of earmarked funds to individual organisations by ensuring their alignment with the MO's core business and reduce the administrative burden on the MO.

c. Reflect on the best funding modality for earmarked contributions. Give preference to pooled, multi-donor or joint funding arrangements.

d. Have a good overview of your portfolio of earmarked funds and pursue a clear strategic approach.

e. In the spirit of shared responsibility support to MOs to achieve further progress in establishing procedures and mechanisms aiming at mutually beneficial earmarking.

f. Promote an inclusive approach involving different stakeholders (MOs, bilateral donors, partner countries, etc.).