Humentum, in partnership with Funders for Real Cost, Real Change (FRC), released a groundbreaking research report revealing inadequate coverage of administrative costs by funders. The data demonstrates how international funders are trapping their grantees in a “starvation cycle” by not sufficiently funding their administrative or so-called overhead costs.
Key recommendations for funders coming out of the report are:
- consistently covering a full and fair share of all associated administration costs
- directly funding financial management capabilities for grantees and making some contribution to unrestricted funds
- systematically collecting data on the extent of adequate cost coverage.