IKI Local Action: FAQ

The required local action share of 50 percent refers to the IKI funding volume (based on the applicant's requested IKI grant) implemented in the partner countries/regions by local members of the consortium, contractors/subcontractors or funding recipients.

In view of the diversity of possible organisational and consortium structures and the large number of outlines received for a call for proposals, the IKI Office of the ZUG cannot provide a binding assessment of whether individual organizations qualify as local organizations at the time of outline submission. We therefore recommend that applicants undertake their own assessment of whether the respective organisations meet the criteria for Local Action, based on the applicable regulations and guidance provided on the IKI website. Applicants are encouraged to explain the rationale for their classification in the Local Action comment field within the budget section of the outline form.

The rule “At least 50 percent of the project funds are implemented by organizations in the partner countries of the IKI projects” applies to the entire IKI funding volume of the project, and thus the total combined funding volume of the preparation and implementation phases.

When assessing the independence of national and regional offices of international civil society, semi-governmental, and private sector organisations, the following aspects are to be considered:

Offices must be registered in a partner country of the respective IKI project and pay taxes there; and
The national or regional office can make independent decisions and is largely independent of instructions from the “umbrella organisation” in the operational design and implementation of project funds. The following aspects must be taken into account when assessing independence:

The operational decisions required for the project implementation can be taken by the organisation (or the sub-grantee for the specified work packages) without need for approval from the HQ. This includes the design and implementation of activities, staff-related decisions, reporting, procurement of materials and services etc.
The organisation has an independent decision-making body (e.g. board, supervisory committee).
The (sub-) grant agreement and/or contract is signed by the local office, and the funds of the grant, sub-grant or contract are administered independently of the HQ. If the HQ and the local office are part of the consortium, the local office would require the authority to conclude the sub-grant agreement with the lead applicant.
The budget of the local office does not include any administrative costs, overheads, personnel etc. for the HQ.
In cases where the HQ is required to provide legal, financial, and/or administrative support to the local office due to the structure of the organisation or country specific contexts and where the remaining points stated above remain valid, a plausible justification may lead to an exceptional recognition of the country office as local organisation. In this case, budget shares incurred by the HQ will be deducted from the Local Action share of the budget.

In contrast to the cases mentioned above, the following types of organizations can be distinguished from the aforementioned aspects and are generally not considered Local Action.

Internationally affiliated organisations: Organisations that are affiliated to an international organisation through inter-linked financing, contracting, governance and/or decision-making systems. This category does not include local and national organisations that are part of networks, confederations or alliances wherein those organisations maintain independent fundraising and governance systems in line with the criteria listed above.

Multilateral organisations: Agencies of the United Nations (UN) and other international organisations.

International private sector organisations: Organisations run by private individuals or groups as a means of enterprise for profit, that are not based in an implementing country and carrying out operations in one or more implementing countries. Here, a distinction is made between corporate structures and forms of organizations that meet the above-mentioned criteria for independence from the Headquarter.