DFID to offer NGOs full cost recovery on grants

An aid worker unloading humanitarian supplies in northern Iraq. Photo by: DFID / CC BY

LONDON — The United Kingdom’s Department for International Development is introducing new procurement guidelines which mean NGOs will be able to recover the full cost of their DFID-funded programs and no longer face a “starvation cycle.”

The new templates and guidance are designed to ensure NGOs are able to negotiate sufficient funding from DFID to cover all of their costs, including overhead expenses and other costs not exclusively linked to a particular project. DFID describes these as “non-project attributable costs,” or NPAC. The agency will advise country teams to adopt the new templates from October and continue to develop them before a mandatory rollout in spring 2019. The move comes after the funder promised to revise its approach to reimbursing overhead costs in its 2016 Civil Society Partnership Review.  

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About the author

  • Edwards sopie

    Sophie Edwards

    Sophie Edwards is a reporter for Devex based in London covering global development news including global education, water and sanitation, innovative financing, the environment along with other topics. She has previously worked for NGOs, the World Bank and spent a number of years as a journalist for a regional newspaper in the U.K. She has an MA from the Institute of Development Studies and a BA from Cambridge University.