LocalLink Hub podcast locallink

The way global aid and the funds around it are structured makes it difficult for local NGOs to get funding for the indirect costs associated with the day-to-day running of an organisation, such as rent, administrative costs, running the team. European donors typically offer 7% of the total grant to cover indirect costs, with more generous US donors increasing this to 15-18%.
In our podcast, we discuss with Martin Gallard, localisation project manager at Terre des hommes, what counts as indirect costs, the structural barriers around indirect costs, and why trust could help local organisations grow. Martin gives an overview of the current inequitable system of fund management, where trust and administrative knowledge is provided by international NGOs, intermediaries, and where iNGOs poach the strong staff of local actors.
A local NGO needs time and money to grow and become sustainable. In our podcast we also discuss what international NGOs can do to help local NGOs better manage and understand indirect costs, and why fewer but better partners are needed in the sector. Martin Gallard suggests three models that could be applied to indirect costs - participatory grant making, pooled funds and the smart way of doing things. And finally, we spend some imaginary money granted to us by a fairy on indirect costs.