This report presents an analysis of the barriers experienced by civil society organisations (CSOs) in the Latin América when seeking funding through calls for proposals and of the transaction costs incurred by CSOs and donors during these processes. The goal of this analysis is to help make visible the overall costs at the ecosystem level and some inefficiencies and inequities frequently manifesting in the resource allocation process.
The data for this research draws from survey responses, supplemented with in-depth interviews, from representatives of 416 CSOs from 19 countries in Latin America and 26 public and private donor entities, both from the region and international. The research was carried out by CIVICUS and Innpactia in collaboration with various civil society platforms and networks in the region.
This analysis confirms that the search for funding opportunities demands considerable investments for all types of civil society actors, but the success of these investments is highly variable. Established CSOs with more resources and a long track record have a higher rate of return of investment given their clear advantage in finding, qualifying and applying for, as well as negotiating funding opportunities compared to small, informal or recently established groups. On the other hand, CSOs most in need lack the conditions to invest in fundraising and meet donor requirements. Their success rates are very low and seem trapped in a vicious cycle, struggling to secure the minimum resources that would allow them to sustain themselves over time and gain skills to increase their chances of getting funding.
In terms of transaction costs, it is highlighted that donor entities also make significant investments during the resource allocation process, which vary according to the nature of the donor and the type of selection process used. These transaction costs are sometimes very high and reveal an unproductive use of resources that CSOs could otherwise direct to mission-critical work.
In brief, the analysis suggests that the funding system for civil society in Latin America is highly inefficient and does not adequately support and strengthen frontline actors playing irreplaceable roles in promoting development, democracy and human rights, especially those defending the civic space and the rights of marginalised populations and vulnerable groups. It must be thoroughly reconsidered from a perspective of equity and sustainability.
The report offers five recommendations to donors to make the distribution of resources more efficient, equitable and better adapted to the Latin American context.
In 2019, CIVICUS and Innpactia published a first report featuring key facts and challenges on the resourcing landscape for CSOs in Latin America based on an analysis of 6,657 calls for proposals.