First development budget cuts announced: overhaul of grants for NGOs

News item | 11-11-2024 | 08:00

Budget

The government will cut the development budget by around €1 billion over a five-year period. The current grants framework, with a total budget of €1.4 billion, expires in 2025. In the new policy framework, a budget of around €390 to €565 million will be available for cooperation with civil society organisations. This is for organisations both in the Netherlands and abroad. The exact amount will be determined as the details of the new policy framework for the 2026 to 2030 period are finalised. More information will be provided early next year.

Minister Klever: ‘As we agreed, the government is reducing spending on development aid,’ ‘I am setting clear priorities. My first decision is to reshape the way we work with NGOs. We will keep doing the things the Netherlands excels at. But less money will go to cooperation with civil society organisations. This will make them less dependent on government support.’

Simpler and more efficient

The government wants to simplify the funding system, for instance by paying grants directly to implementing organisations where possible. By avoiding complex arrangements, funds can be spent as efficiently as possible. In addition, local organisations and communities should more often be given a leading role. This will achieve concrete results that align more closely with local cultures, customs and norms. The government’s new approach also takes account of Dutch organisations with specialist knowledge and expertise, in areas in which the Netherlands excels.

Other priorities

Less money means the government needs to make choices. Its new policy framework will therefore focus on themes in which the Netherlands stands out internationally. From 2026 organisations will no longer receive funding for lobbying activities in the Netherlands.

In summary, funding will remain available for programmes in the following areas:

Health

• Combating HIV/AIDS in developing countries.
• Preventing harmful cultural practices such as female genital mutilation, child marriage and harmful rites of passage to adulthood.

Trade

• Stimulating women’s entrepreneurship in developing countries.
• Promoting clean and fair trade.

Human rights

• Combating violence against women in developing countries, with specific support for female human rights defenders in acute danger.
• Protecting and promoting human rights, individual freedoms and safety of members of vulnerable groups, such as religious minorities and LGBTIQ+ people.

Support for private initiatives

There are many people in the Netherlands who collect money or do voluntary work to help people in developing countries. The government wants to support these grassroots initiatives, for instance by giving them more visibility and providing grants for training and communication.

Less dependent on government

The government wants civil society organisations to become less dependent on government money. To this end, it intends to introduce stricter requirements for organisations that want to get a grant under the new policy framework. In the future, at least 50% of organisations’ total income will have to be own income, such as private donations. Currently, the requirement for nearly all grants is at least 25% own income.