Purpose of the Session:

The purpose of this session is to present and discuss how global humanitarian pooled funding mechanisms, such as the IFRC-DREF and the Start Network, are contributing to the localisation agenda, throughexamples as well as lessons that can be applied to humanitarian policy more broadly. In addition to presenting recent studies, the session will include a panel discussion with representatives from pooled funds, donors as well as local actors, allowing for the sharing of perspectives, expectations, and recommendations on how localization might be further strengthened.

Background

Pooled funding mechanisms have been recognised as an important tool to support locally led humanitarian action, in line with Grand Bargain^[1]commitments on localisation. The report of the High-Level Panel on Humanitarian Financing in 2016, for example, identified pooled funds led by NGOs and those managed by OCHA as an efficient solution to provide more support to national first responders (High-Level Panel on Humanitarian Financing, 2016). Donors and international actors have viewed mobilising and investing in pooled funding mechanisms as a key tool for increasing direct funding opportunities for local actors.

However, little is written from the perspective of local and national non-governmental organisations (L/NNGOs) on their experience of working with pooled funds. The few reports that capture these actors’ feedback on funding have limited mention of pooled funds.^[2]Furthermore, an ICVA commissioned analysis of pooled funds found limited analysis on the comparative analysis or benefits of pooled funding mechanisms: ‘there are only few comparisons among the pooled funds and/or their relative performance against common defined criteria or indicators, including from an NGO perspective’. Finding that funds, for the most part self-report, against self-defined targets which differ from fund to fund.

The elements that define pooled funds constitute their comparative advantages and include flexibility, predictability, stronger risk management (as risks are pooled), cost effectiveness (reducing duplication and ensuring lower transaction costs); promote strategic decision-making; transparency (e.g., with public access data of contributions and allocations).^[3]

There is a need to gauge the contribution of pooled funding to localization and to nuance perspectives of the recipients of pooled funding. Indeed, there ‘are very few instances presenting the specific perspective and/or a disaggregated view’ of different agencies^[4].

In order to better understand how and to what extent their funding mechanisms are contributing to enabling localised action, both the IFRC Disaster Response Emergency Fund (IFRC-DREF) and the Start Network individually have commissioned external reviews.

The British Red Cross, in coordination with the IFRC, commissioned in the first half of 2024 a review on the IFRC-DREF’s contribution to the global localisation agenda, with the aim of identifying challenges, lessons and recommendations to further strengthen its contribution.

The Start Network had alsocommissioned anexternal evaluationof its Localisation Pilot at the end of 2022,assessing the extent to which the global Start Fund is ready in terms of current and planned processes, practices and capacity, to develop into a more locally-led humanitarian model while maintaining its mandate to respond rapidly to the gaps and unmet needs of people in, or at-risk of crisis. Moreover, the Start Network also conducted a2021-2022 evaluationinto its readiness to develop into a more locally led model.

This session will provide a platform to exchange and reflect on the findings of the abovementioned reviews, allowing for the sharing of perspectives, expectations, and recommendations, including from pooled funding recipients on their experience with such funding mechanisms.