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Ukraine

Understanding Ongoing Localization Initiatives and Improving the Policy and Operational Environment for Local Actors - December 2023 [EN/UK]

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Executive summary

Data for this study was collected during the autumn of 2023 through a literature review and interviews with relevant stakeholders within and outside Ukraine. The study does not pretend to be comprehensive, and not all its findings can be shared. Given the dynamic context and ongoing changes to the funding landscape, the findings and overview of funding opportunities provided in this study are only a snapshot.

This study reveals that funding – and the related topics of overhead, due diligence, capacity strengthening, and access to information – is a key issue when it comes to localization efforts in Ukraine. Localization efforts in Ukraine are focused on Ukrainian civil society organizations (CSOs); these include national non-governmental organizations (NNGOs), local NGOs with a more limited presence and volunteer/informal groups that may be more temporary in nature and thus not always formally registered. The number of Ukrainian humanitarian NGOs has grown exponentially since the start of the full-scale war in February 2022.

There has been some progress towards localization since 2022, including greater availability of funding opportunities for CSOs and investments in capacity strengthening. However, many CSOs find that progress has been slower than expected. Compounding this is the lack of a shared definition of localization: since the 2016 Grand Bargain, no single global definition has been agreed upon. We therefore suggest that the meaning of localization within a Ukrainian context should be defined by stakeholders, with Ukrainian actors leading the process.

To measure progress towards localization, the previous localization baseline study should be repeated, and several quantitative indicators, such as funding, should be added. To assist with understanding what can be expected of localization, why it is done, and how, including the benefits and risks related to localization, stakeholders in Ukraine should develop a shared strategy.

Access to funding – including longer-term, flexible funding – is very important to Ukrainian CSOs. According to data from the UN’s Financial Tracking Service, as of November 2023 these groups have received USD 25 million, or only 1% of the total humanitarian funding allocated for Ukraine. Our findings indicate that an additional USD 240 million is available to local actors, which indicates that there is a clear need for greater transparency and information regarding available funding. Also, to ensure a level of predictability, local and national CSOs should be given some form of assurance that they will be supported longer-term, providing that funding is available.

There are different definitions of what can be included in overhead, and rates can vary. Most donors do not allow sub-grantees to charge overhead, which leads to alternative methods for sharing overhead with Ukrainian CSOs.

Ukrainian CSOs perceive that the due diligence processes required to access funding are too time- and resource-intensive, and that the tools used are not always commensurate with a Ukrainian context or conducive to the intended collaboration. This could be solved by sharing due diligence processes, and some international NGOs reported working on this. These efforts need to be continued, and a list should be compiled of which CSOs have been the subject of due diligence processes.

Although stakeholders found that Ukrainian CSOs’ overall capacities are relatively high, there is a need to strengthen them in nearly every area of operation, including proposal writing, financial management, safeguarding, programming, etc. To avoid redundant trainings, we recommend that NGO Platform members carefully assess whether the training that has already been provided is adequate.

Ukrainian CSOs do not always prioritize participation in coordination mechanisms and can find it difficult to understand the acronyms and technical terminology used. Furthermore, they cannot always find the time to identify funding opportunities. To assist with this, a package of basic information on Ukrainian and global aid architecture, including a glossary of terms and a list of available funding opportunities should be developed.

All the elements evoked above – information package, definition of localization, localization strategy, funding opportunities and other materials – should be made available online, on a platform established and maintained by the NGO Platform. The Platform should work closely on this with the newly established Alliance of Ukrainian CSOs.