The ANCP's annual appropriation is determined as part of the government's Official Development Assistance Budget process. Funding to the ANC P includes funding for Australian NGOs and program management funds.
In 2017-18 a total of $129.5 million was allocated, with $0.7 million assigned to resource program management activities such as contract management and monitoring and evaluation activities.
To receive funding through the ANCP, NGOs must pass a rigorous accreditation process that assesses an NGO's development approach, governance, program management capacity, partner management, risk management and links with the Australian public.
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.
The purpose of the ANCP Funding Policy is to articulate an effective and fair approach to the allocation of funds to accredited NGOs.
The RDE principle
RDE is the annual eligible expenditure of a 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.
The RDE worksheet explanatory notes provide guidance on the RDE principle, including how it is calculated.