In 2011, UNCDF’s total resources reached the highest level in decades amounting to $53.2 million, an increase of 29 percent from $41.1 million in 2010. Voluntary contributions to UNCDF’s regular (core) resources increased from $15 million in 2010 to $16 million (excluding UNDP programming support). Although two core donors (Belgium and Luxembourg) increased their voluntary contributions, most of the growth in UNCDF’s regular resources is attributed to favourable exchange rates and is below the prefinancial crisis level of $18.7 million. UNCDF continues to rely on a small set of core donors — voluntary contributions from six donors constitute 95 percent of UNCDF’s regular resources — and remains short of its target of $25 million which will allow UNCDF to operate effectively in 40 least developed countries (LDCs). 

Earmarked (non-core) contributions to UNCDF reached $33.9 million in 2011, the highest in UNCDF history. UNCDF continues to enjoy increased support from bilateral and multilateral partners, private sector foundations and NGOs while remaining a strong partner in “One UN” initiatives. The MasterCard Foundation was UNCDF’s largest partner in financial terms contributing $9.2 million in 2011. The remaining top donors were Sweden, Belgium, the Australian Agency for International Development, and the Canadian International Development Agency. In total, UNCDF received support from 33 development partners in 2011 (up from 29 in 2010 and 20 in 2007).

Earmarked resources represent an important complement to the regular resource base of UNCDF. In the past decade, UNCDF’s earmarked resources have increased tenfold, as UNCDF’s programmes to create new opportunities for poor people and their communities by increasing access to microfinance and investment capital have consistently showed strong results and increased demand by the LDC governments. However, the ability of UNCDF to make strategic capital investments with the lasting impact depends on a critical mass of core funding to be able to respond timely to crises and opportunities. In the current dynamic environment, it is essential that UNCDF is able to catalyse truly transformative change in the countries it serves. UNCDF is fully committed to continuously improving its results-based reporting practice for effective, efficient and transparent use of the resources entrusted to the organization.