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Understanding Humanitarian Financing: Appeals, Pooled Funds, and the Role of Clusters

This session explores the critical elements of humanitarian financing, including the appeals processes, pooled funding mechanisms, and the vital role of clusters in coordinating responses to crises. It covers the essentials of financial tracking service (FTS), the consolidated appeals process (CAP), and the Central Emergency Response Fund (CERF). Participants will gain insights into the sources of funding, types of appeals (Flash and Consolidated Appeals), and the fast-paced planning and assessment required in emergencies. Learn how these strategies are crucial in addressing urgent humanitarian needs across global crises.

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Understanding Humanitarian Financing: Appeals, Pooled Funds, and the Role of Clusters

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Presentation Transcript

  1. Session I: Humanitarian Financing (Appeals processes, pooled funding mechanisms, role of clusters, CERF exercise)Session II: Financial Tracking Service (FTS) and CAP Project Database (OPS)

  2. Humanitarian Finance - the basics • SUPPLY:(Funding sources) • National government • civil society • NGO funds • bilateral donors • multilateral donors • private sector • pooled funds • CERF • Emergency Response Fund • Common Humanitarian Fund DEMAND:(Appeals for funding) - stand-alone appeals - consolidated appeals processes • Flash Appeals • Consolidated Appeals Process (CAPs) • Common Humanitarian Action/Response plans – Afg, Pak, Yemen, SL, Kenya, Nepal, Myanmar

  3. Demand side: Appeals

  4. What is a Flash Appeal? • overview of urgent life-saving needs • within a week of emergency's onset • acute needs 3- 6 months • Includes: • rapid needs assessments (3 days!) • all cluster response plans • projects for funding

  5. Indicative timeframe Indicative timeframe Day 1 • HC/RC triggers flash appeal – consults country team & government. Day 2-4 • Clusters conduct rapid needs assessment and prepare sector response plans and select projects. Day 5 • HC sends final draft to OCHA CAP Section, which circulates it for comment within 24 hr to IASC HQs. Day 7 • CAP Section processes & electronically publishes document • Official launch of appeal • Donors select from menu of projects.

  6. What is a CAP? A Consolidated Appeal is, basically, a longer version of a Flash Appeal (12 months), for longer-term crises, offering more analysis and detail.

  7. Supply side: Pooled funds

  8. Pooled funds 3 types: CERF - Central Emergency Response Fund CHF - Common humanitarian funds ERF – Emergency Response Funds Worldwide…. Country specific…. Small scale for gaps….

  9. Timeline for Planning and Appeals up to 6 months 6 months on • Cluster • Response Plan • plus projects Flash Appeal – Multiple donors Consolidated Appeals Process (CAP) CERF Project proposals

  10. Clusters have crucial role: involve all cluster participants coordinate rapid needs assessments set cluster strategy and priorities lead & coordinate response plans gather project proposals inclusively vet projects transparently ALL VERY FAST!

  11. What is CERF? • Rapid response grants (2/3 of grant facility) • Under-funded crises (1/3 of grant facility) if no other funding source immediately available, including agencies’ own unearmarked agency funds and earmarked donor grants 3. Loans ($50 million) funding committed but not yet paid; or commitment very likely • to meet immediate relief needs • max. per emergency is US$ 30m • min. CERF grant allocation per project is US$ 100,000 • funding to be committed within 3 months

  12. Who can receive CERF Grants? NGOs cannot apply directly for CERF funds, but: • should participate in process as part of the Cluster • do receive funds as implementing partners of UN agencies & IOM

  13. Essential CERF criteria Life-savingactivities or services Time-criticalactions or resources If not met, then

  14. CERF Funding Criteria • All projects funded through the CERF grant component must be for life-saving / core emergency humanitarian programmes defined as: Activities that, within a short time span, remedy, mitigate or avert direct loss of life, physical harm or threats to a population or major portion thereof. • Also permissible are common humanitarian services that are necessary to enable life-saving activities (e.g. air support, emergency telecommunications, logistics).

  15. Activities Outside CERF Mandate • Activities that are not immediately life-saving, such as disaster mitigation, early warning, prevention and preparedness, economic recovery, poverty reduction, and disarmament, are not suitable for the CERF. • CERF contributions do not cover: • Recurrent costs (regular government staff salaries, running office and maintenance costs, etc.) • Regular agency stockpiling • Capacity building and training (funded only if related to direct implementation of emergency response) • ** Proposals that contain life-saving elements in the project narrative but the budgets focus on non-life-saving elements are not suitable for the CERF grant window. **

  16. Examples of Life-Saving Activities

  17. Examples of Life-Saving Activities

  18. Examples of Life-Saving Activities

  19. Examples of Life-Saving Activities

  20. Priority Activities

  21. Main reason for delays in CERF funding… BUDGET ERRORS

  22. What is wrong with this budget?

  23. What is wrong with this budget? http://cerf.un.org

  24. Time for an exercise!

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