Q: If a small NGO would like to participate as a partner in a project, but does not have available co-funding, could their co-funding portion be covered by a larger organisation (e.g. government agency)?

A: All beneficiaries must provide 50% co-financing from their own resources. It is not possible for different beneficiaries within the partnership to operate with higher or lower rates, even if the overall co-financing for the project still totals 50%. The reason for this tightening of the rules is abuses by some projects in the previous programming period.

If a larger organization wishes to provide co-financing for a smaller organization, the only way to do this is for the larger organization to transfer cash funds to the smaller organization, so that it has this cash to use for its co-financing. Such transfers must be clearly identifiable in the accounts of both the donor and the recipient.