The ANCP is DFAT’s largest single support mechanism for accredited Australian non-government organisations (NGOs). The ANCP is an annual grants program that provides funding to accredited Australian NGOs to delivery community development projects in developing countries. Australian NGOs funded under the ANCP must pass a rigorous accreditation process that assesses their governance, program management capacity, and risk and partner management.
The ANCP’s annual appropriation is determined as part of the government’s Official Development Assistance Budget process. Funding to the ANCP includes funding for ANGOs and program management funds.
In 2016-17 a total of $127.3 million was allocated, with $0.9 million assigned to resource program management activities such as contract management and monitoring and evaluation activities.
Base accredited NGOs receive a fixed annual grant amount ($150,000). NGOs with full accreditation receive a higher annual grant amount ($300,000) plus a proportion of the funding pool based on their respective recognised development expenditure (RDE). Annual funding is impacted by a range of factors including changes to overall appropriation for the ANCP, NGOs shifting across the tiers of accreditation, individual NGOs’ RDEs and new entrants into the ANCP.
A 2015 Office of Development Effectiveness (ODE) Evaluation highlighted the need for the ANCP’s funding policy to be explicitly articulated. In this context, the Evaluation also noted the risks associated with unexpected budget cuts, particularly the impacts to long term planning and relationships. A new funding policy will commence from 1 July 2016 which will address the ODE Evaluation recommendations and will align individual NGO’s funding allocations to their RDE. The policy will be implemented over a period of four financial years.
ANCP Funding Policy
The RDE principle
Recognised Development Expenditure (RDE) is the annual eligible expenditure of a Non Government Organisation (NGO), using contributions from the Australian community. Eligible expenditure is for the NGO’s own development assistance, emergency relief or rehabilitation activities overseas and development education in Australia. Eligible contributions include donations of cash, gifts-in-kind and volunteer services. Up to half of the RDE can be from eligible gifts-in-kind and/or eligible volunteer services.