HUMANITARIAN
FINANCING
HUMANITARIAN FINANCING
Appeals processes
Pooled funding
mechanisms
CERF exercise
HUMANITARIAN FINANCING
DEMAND
SUPPLY
 Agency-specific appeals
 NGO consortium
appeals
 Project proposals to
bilateral donors
 Consolidated appeals
processes
 Flash Appeals
 CAPs






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National government
Civil society
NGO funds
Bilateral donors
Multilateral donors
Private sector
Pooled funds
(CERF, CHF, ERF)
DEMAND SIDE: JOINT APPEALS FOR FUNDING
Consolidated appeals
processes:
 Flash Appeals - sudden
onset disasters
 Consolidated Appeals
(CAP) – on-going
(complex) emergencies
HISTORICAL BACKGROUND
What emergency in 1991 was the catalyst
for the creation of the Consolidated
Appeals Process?
The Kurdish Refugee Crisis
WHY:
• massive refugee influx
• uncoordinated response
• chaos
HISTORICAL BACKGROUND
General Assembly Resolution 46/182,
December 1991:
Strengthening the coordination of humanitarian
emergency assistance of the United Nations by:
•
Creation of the Emergency Relief Coordinator (ERC)
•
Inter-agency Standing Committee (IASC)
•
Consolidated Appeals Process (CAP)
•
Central Emergency Revolving Fund (CERF)
HISTORICAL BACKGROUND
GA Resolution 46/182:
“For emergencies requiring a consolidated
response, the Secretary-General should
ensure that an initial Consolidated Appeal
covering all concerned organisations of the
system, prepared in consultation with the
affected State, is issued within the shortest
possible time…”
FLASH APPEALS – WHAT IS A FLASH APPEAL?
 Overview of urgent life-saving needs
 Within a week of emergency's onset
 Acute needs 3- 6 months
 Consolidated Appeal (CAP) for longer-term emergencies
Includes:
rapid needs assessments (3 days!)
cluster response plans
projects for funding
FLASH APPEALS – INDICATIVE TIMEFRAME
Day 1 – RC/HC triggers flash appeal – consults country team &
government.
Day 2-4 - Clusters conduct rapid needs assessment and prepare
cluster response plans and select projects.
Day 5 – RC/HC sends final draft to OCHA CAP Section, which
circulates it for comment within 24 hr to IASC HQs.
Day 7 - CAP Section processes & electronically publishes document
Official launch of appeal. Donors select from menu of projects.
Week 4 - Revision of flash appeal
ROLE OF CLUSTER COORDINATORS IN THE FA
Coordinators have crucial role:
 Involve all cluster participants
 Coordinate rapid needs assessments
 Lead & coordinate response plans
 Discuss cluster strategy, objectives and priorities
 Gather project proposals inclusively
 Vet projects transparently
ALL VERY FAST!
CONSOLIDATED APPEALS – WHAT IS A CAP?
A CAP is basically a longer version of a Flash Appeal (12 months), for
longer-term crises, offering more analysis and detail.
It consists of a strategic framework called the Common Humanitarian
Action Plan (CHAP) and a list of projects with budgets. Together these
two parts are called a Consolidated Appeal.
The CHAP provides:
 A common analysis of the context in which humanitarian takes place;
 An assessment of needs;
 Best, worst, and most likely scenarios for the coming year;
 Detailed cluster response plans;
 A clear statement of strategic priorities, objectives and goals; and
 A framework for monitoring the strategy and revising if/when
necessary.
CONSOLIDATED APPEALS – ELEMENTS OF A CAP
•
•
•
•
Needs assessment & analysis
Strategic priorities
Sector-specific response plans
Strategic monitoring framework
}
Common
Humanitarian
Action Plan
(CHAP)
+
Inventory of projects and budgets necessary to accomplish
the strategy ($)
= Consolidated Appeal (CAP)
It puts a price tag on the humanitarian response and allows
donors’ funding to be measured against needs.
The CHAP is…
The humanitarian sector’s main tool for
coordination, strategic planning and
programming.
• The CHAP utilizes a “logical framework”
approach to ensure a rational and
logical consistency between strategic
priorities, sector objectives, monitoring
indicators, and activities.
• Each strategic priority will have
associated sector/cluster objectives that
will be measured by observable and
measurable indicators.
The CAP
is not…
A collection of all humanitarian
activities in a given country.
Typical process:
• Cluster coordination and needs assessments (on-going)
• CHAP consultative workshop – all stakeholders agree
strategic priorities
• Clusters make detailed response plans & upload projects
on the Online Project System (OPS).
• OCHA supports partners in writing general sections,
assembles other parts, circulates to humanitarian
country team & RC/HC for approval, then sends to
OCHA Geneva
• OCHA Geneva shares with IASC HQ for comments,
finalises & publishes
• Global launch in Geneva. Possible local launch in
country capital.
Then…
• Donor pledging meeting
• Monitoring (on-going)
• Financial tracking (on-going)
http://fts.unocha.org
• Mid-year review: consultative workshops,
draft doc in field, OCHA-GVA publishes,
MYR launch
• Preparation of next year’s CHAP
workshop?
If there is a need to change the
humanitarian strategy or funding
requirements, the document and related
projects + budgets can be revised in
any way at any time.
SUPPLY SIDE: SOURCES OF FUNDING
Focus on pooled fund
mechanisms:
 CERF
 CHF
 ERF
SUPPLY SIDE: POOLED FUNDS
 CERF - Central Emergency Response Fund
Global rapid response to sudden onset disasters & funding
for neglected or underfunded emergencies
 CHF - Common Humanitarian Funds
Large country-specific pooled funds – Sudan, DRC, CAR,
Somalia (recently established in June 2010).
 ERF – Emergency Response Funds
Smaller country-specific pooled funds for unforeseen needs.
(Afghanistan, Colombia, DRC, Ethiopia, Haiti, Indonesia,
Iraq, Kenya, Myanmar, Nepal, oPt, Pakistan, Sudan,
Uganda, Yemen and Zimbabwe.)
Complementarity of Pooled Funds
NGO
Rapid Onset
Emergency
ERF
CHF
CAP
CERF
(Global)
UN
21
COMMON HUMANITARIAN FUNDS (CHF)
The main objective of a CHF is to ensure timely and
predictable funding of core activities within a Common
Humanitarian Action Plan (CHAP) by providing CHF grants to
priority projects included in the CAP. All organisations
participating in the CAP are eligible to receive CHF funding.
Allocation rounds are typically undertaken two to three times
a year, with the majority of CHF funds allocated at the
beginning of the year. Allocations are based on a consultative
allocation process that engages clusters and other relevant
stakeholders at country level in a comprehensive prioritisation
exercise.
COMMON HUMANITARIAN FUNDS (CHF)
Based on allocation proposals developed and submitted by
sector/cluster groups, and supported by a technical Review
Board, the HC makes final decisions on CHF grants. An
Advisory Board with donor, UN and NGO participation advises
the HC on policy issues and strategic direction of the fund.
HC is responsible for the overall management and oversight of
the CHF. Day to day management is performed by OCHA.
Financial administration is undertaken by UNDP. UNDP receives
and manages donor contributions to the fund.
The Emergency Reserve (typically 10%) is used by the HC to
respond to unforeseen emergency needs outside the CAP.
EMERGENCY RESPONSE FUNDS (ERF)
The name Emergency Response Fund (ERF) is used as an
umbrella term covering a broad number of country-based funds.
The specifics of the individual funds reflect the country contexts
in which they have been established and therefore vary. ERFs
are known under different names in different countries including
Humanitarian Response Funds (HRF).
An ERF is established to provide NGOs and UN with a rapid
and flexible in-country funding mechanism to help respond to
small shocks and meet the short-term emergency needs of
vulnerable communities. The aim of an ERF is to provide initial
funding for a sudden onset emergency to enable humanitarian
partners to respond to a crisis without delay.
EMERGENCY RESPONSE FUNDS (ERF)
ERF is not intended to provide core funding to projects or
programmes in a protracted crisis, although some ERFs
may provide funding to critical gaps in the CAP on an
exceptional basis.
Under the overall management and oversight of the HC.
Day to day management and financial administration
performed by OCHA. Funds are channelled through OCHA
to NGOs and UN agencies.
EMERGENCY RESPONSE FUNDS (ERF)
When needs emerge, partners submit proposals for
funding to OCHA, and the HC makes decisions on ERF
grants supported by a technical Review Board and the
clusters. An Advisory Board with donor, UN and NGO
participation advises the HC on policy issues and strategic
direction of the fund.
Generally, ERFs are relatively small in size (less than $10
million), provides small to medium sized grants (less then
$500,000) and predominantly fund NGOs. However, the
flexibility of ERFs mean that not all funds adhere to this
profile.
CENTRAL EMERGENCY RESPONSE FUNDS (CERF)
CERF (global) mandate:
•
Promote early action and response to reduce loss of
life
•
Enhance response to time-critical requirements
•
Strengthen core elements of humanitarian response
in underfunded crisis
•
Complement existing humanitarian funding
CENTRAL EMERGENCY RESPONSE FUNDS (CERF)
 Rapid response grants (2/3 of grant facility – $300m)
 Promote early action and response to reduce loss
of life
 Enhance response to time-critical requirements
 Under-funded crises (1/3 of grant facility - $150m)
 Strengthen core elements of humanitarian response in
underfunded crises
 Loan facility ($50 million)
 Funding committed but not yet paid; or commitment very
likely
CERF PROPOSALS AND APPEALS PROCESSES
Timeline for Planning and Appeals
up to 6 months
Cluster
Response
Plan
plus
projects
Flash Appeal –
Multiple donors
CERF
Project proposals
6 months on
Consolidated
Appeals
Process (CAP)
CERF – WHO CAN RECEIVE FUNDING?
 UN agencies & IOM. (OCHA is not eligible for grants.)
 NGOs cannot apply directly for CERF funds, but should
participate in process as part of the clusters, and do
receive funds as implementing partners of UN agencies &
IOM.
 To increase transparency NGOs should try to negotiate
their role as implementing partners with the UN agencies at
the time of the drafting of the CERF application and make
sure that they are named as such in the proposal
(preferably with the % of funding that will go to them).
CERF – ESSENTIAL CRITERIA
Life-saving
activities or services
Time-critical actions or resources
CERF –FUNDING CRITERIA
 All projects funded through the CERF grant component
must be for life-saving / core emergency humanitarian
programmes defined as:
Activities that, within a short time span, remedy, mitigate or
avert direct loss of life, physical harm or threats to a
population or major portion thereof.
 Also permissible are common humanitarian services that
are necessary to enable life-saving activities (e.g. air
support, emergency telecommunications, logistics).
CERF – ACTIVITIES OUTSIDE THE MANDATE
Activities that are not immediately life-saving, such as disaster
mitigation, early warning, prevention and preparedness, economic
recovery, poverty reduction, and disarmament are not suitable.
CERF contributions do not cover:
 Recurrent costs (regular government staff salaries, running office
and maintenance costs, etc.)
 Regular agency stockpiling
 Capacity building and training (funded only if related to direct
implementation of emergency response)
Proposals that contain life-saving elements in the project narrative but the
budgets focus on non-life-saving elements are not suitable for the CERF
grant window.
GUIDANCE ON PRIORITY ACTIVITIES
Life-Saving
Depending on context
Not eligible
Primary Healthcare
De-mining
Infrastructure
Reconstruction
Therapeutic Feeding
Livestock Vaccinations
IM systems
Emergency
General Food Distributions
Micro-credit
Shelter/NFI
Surveillance systems
Preparedness Plans
Protection
Psycho-social
Vulnerability assessments
WASH
Emergency Education
CERF –FUNDING CRITERIA

CERF was the largest and fastest source of
funding to the 2011 Flash Appeals

CERF fills gaps across appeals

But….. CERF is only 7% of global
humanitarian contributions
CERF – MAIN REASONS FOR DELAY
BUDGET ERRORS !
CERF LIFE-SAVING CRITERIA
TIME FOR AN
EXERCISE!