WORKING WITH DG ECHO AS AN INTERNATIONAL ORGANISATION | 2021 - 2027

ACTIONS' FINANCING MODALITIES

Credit: © European Union 2019 (photographer Bertha Wangari

Depending on the category of partner and the type of the Action to be financed, the Financial Regulation sets different working methods, known as “financing or budget management modalities”. At this regard, we can distinguish:

Direct / Indirect management modalities;

Co-Financing - Multi-donor / full financing modalities.

DIRECT MANAGEMENT INDIRECT MANAGEMENT

When the Commission implements the action using the direct management modality, it directly performs all the budget-implementation tasks. In this case, ECHO defines the procedures to be used and signs and manages the contracts with the organizations receiving the grants.

When the Commission implements the action using indirect management modality, it entrusts budget-implementation tasks to an entrusted entity (the delegatee), which has the responsibility of implementing EU resources according to its own internal rules and procedures.

To be eligible to work under indirect management, the partner must undergo a comprehensive ex-ante assessment of its systems, rules and procedures (Pillar Assessment). The Pillar Assessment verifies whether the partner demonstrates a level of financial management and protection of the financial interests of the Union equivalent to that of the Commission (Principle of Equivalence).

CO-FINANCING/MULTI-DONOR AND FULL FINANCING

When establishing the rate of co-financing for the Action, DG ECHO takes into account the urgency of the Action, the availability of other donors and any other relevant circumstances, having due regard to the respect of the core humanitarian principles. On the basis of these considerations, DG ECHO may decide to finance the Action in part or in full.

PARTIAL FINANCING FULL FINANCING (EXCEPTION)

In this case, the action is financed by several donors and/or financed partially by the partner's own funds. All the funds are pooled together in a way that the source of funding for a specific activity is not identifiable (funds are not earmarked).

This financing modality is defined,

as Co-Financing, for the Action implemented by the NGOs Partners; and,
as Multidonor, when implemented by IOs.

The funds that contribute to the action are listed in the section 13.3 of the Single Form and in case of contributions from other donors, more details have to be provided in the section 13.7.

Please note that contributions in-kind made by other donors (such as volunteers, goods, equipment received for free) may not be considered as co-financing.

ECHO may finance the entire cost of the action in presence of one of the following circumstances:

the Action is urgent;
there is no availability of other donors;
the Action is considered as a priority by ECHO.

In case of request for full financing, the Partner must be able to duly justify the reasons in section 13.4. of the Single Form.