As a voluntarily funded UN agency, UNCDF relies on donor governments for the bulk of its financing. This includes core (unearmarked) financing, as well as non-core financing (earmarked for a particular country or programme).

16 donor countries currently support UNCDF projects and global programs. This include DAC donors, such as Australia, Austria, Belgium, Canada, Denmark, Luxembourg, Norway, Sweden, Switzerland and the United States; but also non-DAC donors such as Andorra, China and Thailand, including three governments from least developed countries themselves, such us Bhutan, Cambodia and Timor Leste.