The NGO starvation cycle is global. Here are three recommendations for funders. - Alliance magazine

Humentum’s recently published report, Breaking the Starvation Cycle, was one of the first studies to provide data on the adequacy of cost coverage provided to lower and middle-income country nonprofits. The research found that over 60 per cent of funding agreements fail to cover full administration costs incurred by grantees to deliver expected outcomes. The research was commissioned by Funders for Real Cost, Real Change (FRC), a collaborative of private foundations, and provided recommendations on how funders can provide adequate cost coverage and strengthen their grantees’ financial health and resilience.