1.5 What is the likely total cost of the project? In GBP sterling, mention the total budget of the project. Remember that the total budget includes the amount proposed to DFID and also other amount which could be sourced from another donor or it could be your own contribution.
In 1.6, you need to mention the total funding requested from DFID, out of the total cost of the project.
Please note that you could request a funding in a range from £ 250,000 to £ 4 million but this proposed funding should not exceed more than the 40% of the annual income of your organization. For example, if the annual income of your organization during the previous financial year has been just £ 100,000, you cannot request funding support of more than £ 40,000.
You could request 50% or 75% of the total funding from DFID for the project, but not more than 75%. For example, if the total budget of the project is £ 400,000, you can request support from DFID up to £ 300,000 or 75% of it. The rest of the money i.e. £ 100,000 or 25% should be raised from other sources. This £ 100,000 you raise from other sources is the match funding which you need to mention in 1.7.
Is it necessary to raise 25% of match funding?
Yes, according to the GPAF guidelines, a proposal qualifies for consideration only if the organization is able to raise 25% of the match funding. In fact, the more the match funding (beyond 25%) there are better chances of your project being selected for funding.
But where can the organization raise the 25% match funding?
Many small NGOs face this eternal problem of finding match funding. In fact, several organizations feel discouraged when they see this criterion for the very shortlisting of the project and do not apply at all. However, experience with various donors says that the 25% match funding can still be easily managed.
The 25% of this match funding is totally up to us: how we manage or spend it or from where we raise it. All we need to ensure is that it is available in some kind or the other. This match funding could include the salaries of the staff who are already working for your organization and you are paying them from the core fund or from another similar project; it could also include the rent and operational expenses of your office; and the computers and stationary that is already available with you.
Make a list of all the resources your organization has and extract their costs. If they do not make it to 25%, then you can still add up the community contribution part, which could also be in kind. Suppose the project has an activity to build a health center. You can request the community to donate land or contribute labor to build it on their own. If they do it, it means it is the match funding!
Besides, if you have an assured 75% funding from DFID, many other donors will be happy to come forward and cover a small percentage of the total project cost, maybe to organize a workshop, meeting or training.
Finally, do not forget to explore government resources and schemes. Even if it is less than 5%, it will add great value to your project budget and you have better chances of getting the funding.
