How OCHA is funded
OCHA receives voluntary contributions from a diverse set of donors. Their generous contributions and constant active support allow OCHA to grow and to develop innovative ways to deal with the challenges facing the global humanitarian community. OCHA values donors’ efforts to fund us year after year and counts on their continued support during these times of multiple and complex humanitarian crises.
OCHA Donor Support Group (ODSG)
The ODSG is under the leadership of a Chair that sits for a year and consists of 27 members being; Australia, Austria, Belgium, Canada, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Japan, Luxembourg, New Zealand, the Netherlands, Norway, Poland, Republic of Korea, Russian Federation, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, United Kingdom, United States and the European Commission.
To finance OCHA’s activities, only 5 per cent of the organisation’s annual budget is funded from the United Nations Regular Budget. Therefore OCHA is, year after year, above all dependent on the voluntary contribution of its Member States’ and the European Commission. The United Nations General Assembly approves the Regular Budget every two years, which is funded from assessed contributions paid by each Member State.
As OCHA is a constantly growing organization and the world is unfortunately experiencing constant emergency situations, the budget for humanitarian help and coordination is increasing as well. OCHA makes sure that the contributions made by donors find their way to the situations that are in need, providing the financial requirements for its own Programme, and this as efficient as possible. By coordinating humanitarian action, information management and humanitarian financing, a proficient system has been developed to guarantee a fast response to humanitarian crises without extra costs for the donors.
Specially Designated Contributions (SDCs)
Furthermore, donors can choose to fund humanitarian projects that are implemented by third parties (UN partners and NGO’s). These are the so-called SDCs, but they are not included in the annual budget plan, as they do not have a direct link to OCHA’s activities. Therefore OCHA channels this sort of income to third parties in the form of grants. The most common SDCs are:
- Emergency Respond Funds (ERFs).
- Natural disaster activities (emergency cash grants).
- UNDAC Mission Accounts: Member States deposit funding with OCHA, which is then used to deploy their nationals on UNDAC Missions.
- Relief Stock Items: are used to purchase and manage OCHA relief stocks held in the UN Humanitarian Response Depot.
- Protection Standby Capacity (ProCap) and Gender Standby Capacity (GenCap) Projects: covers the Norwegian Refugee Council’s management and deployments of senior protection officers and senior gender advisers, as well as related training programmes.
To enable the allocation of funds where and when they are needed, there is need for flexibility in the received contributions. Therefore an important part of OCHA’s resource mobilization strategy is to secure a healthy balance between earmarked and unearmarked funding from donors and, where possible, to secure those commitments on a multi-year basis, in order the secure a timeliness of OCHA’s donor income. In 2014, OCHA received $129.2 million (54 per cent) in earmarked contributions and $108.3 (46 per cent) million in unearmarked funds.
Some donor policies allow, or favour, the allocation of unearmarked funding to humanitarian organizations in return for corporate-performance commitments, and an expectation that funds will be internally allocated where they are most needed, including during a sudden on-set emergency. This results in a greater operational flexibility and security while allocating funding, especially at the start of each year. Given such a high percentage of OCHA’s costs are staff-related, this is very important.