Insights

On June 25, 2024, NPI EXPAND hosted the fifth event in the project’s series, Lessons in Localization: Experiences and Perspectives from the NPI EXPAND Project. As NPI EXPAND comes to a close in October 2024, the project will share experiences and lessons learned from implementing its large-scale grants and capacity strengthening program through a series of webinars for stakeholders. To stay updated on the series and future events, be sure to sign up for email updates from the project using this link.

One of the critical constraints cited by local organizations in low- and middle-income countries is an inability to mobilize financial resources to use for internal management and business development; expenses that are not associated with any specific grant or activity but are necessary for the organization’s functioning and growth, such as recurring operating costs, business development, investing in governance, institutional strengthening for information systems, and human resource management. Yet, these activities are recognized as essential to an organization’s long-term viability.

As a part of NPI EXPAND’s objective to strengthen the organizational sustainability of local partners, the project assists grantees in understanding and budgeting for reasonable indirect costs. Since NPI EXPAND’s first grant in April 2020 through December 2023, 65 grantees in 11 countries have received funds to cover indirect costs, representing 71 percent of all NPI EXPAND grantees. As a part of these efforts, the program has encouraged local organizations to adopt indirect cost recovery policies. However, awareness of planning for indirect cost recovery has been generally low among most NPI EXPAND sub-recipients. This event, Funding Organizational Sustainability: Indirect Cost Recovery, highlighted the experiences of NPI EXPAND local partners with indirect costs as well as the barriers experienced to achieving indirect cost recovery. Featured local partners in Pakistan and Tanzania shared experiences. Additionally, this webinar showcased perspectives from USAID on indirect cost recovery.