The U.S. Agency for International Development awards billions in grants each year, mostly to nonprofit organizations. In fiscal 2012, USAID contributed $8.9 billion in grants, 51 percent of which were awarded under cooperative agreements. Cooperative agreements allow USAID limited participation in the recipient’s project.
In line with the USAID Forward reform agenda’s goal of broadening the agency’s partner base, USAID has opened a number of new grant-making channels in recent years. For instance, through its Development Innovation Ventures program alone, USAID is currently supporting development projects in 19 countries. Aimed at identifying and scaling up innovative development interventions, the program has received more than 3,000 applications since its launch in October 2010.
USAID has also committed to award more of its grants to local organizations, again in keeping with USAID Forward. In fiscal 2012, groups based outside the United States received only 14 percent of the agency’s grant funding. USAID has set a target of channeling 30 percent of its overall assistance to governments, local businesses and local nongovernmental organizations by 2015.