Background
At the global level, there are growing policy discussions and commitments around the issue of fairer indirect cost recovery (ICR) for local and national actors. These refer to costs that are not related directly to a specific project, but that support the efficient, effective, accountable, and safe running of an organisation. This is also key for risk sharing among partners.
There is widespread agreement that local and national actors should be provided with overheads or indirect costs. Local and national actors urgently need to see a change in the funding modalities and behaviour of their international partners, which is critical for promoting and sustaining local leadership as the foundation for locally-led response, recovery and development.
The Localisation Advocacy Group (LAG) and Refugee Council of Türkiye (TMK) have long advocated on this issue in Türkiye, which has led to some progress in the transfer of overheads/ICR to local organisations. With the launch of the National Reference Group (NRG) in Türkiye in January 2023 under the framework of the Grand Bargain, there is increased opportunity and commitment to make further progress on this issue in the country.
Research conducted between 2021-2023 by Development Initiatives (DI) in partnership with UNICEF, Oxfam, and NEAR network (Network for Empowered Aid Response) informed the Inter Agency Standing Committee (IASC) Guidance on the Provision of Overheads to Local and National Partners.
Many international organisations and donors are currently engaged in critical selfreflection, aligning their practices with the evolving standards within the aid sector. NRG in Türkiye believes that keeping the momentum around the issue of fair overhead practices is an ongoing endeavor if the global community is genuine about making significant change in localisation policy and practice.
Given recent global policy developments on overheads, the NRG in Türkiye decided to organise a workshop on “Overheads/ICR for local and national NGOs” to address and advance the policy and practice of transferring overheads to local and national NGOs in program partnerships in the country
