UNCDF is entirely funded by voluntary contributions from UN Member States, multilateral organizations, foundations and other sources. These contributions are provided as regular (core) resources, or other resources earmarked for specific purposes. UNCDF’S strategic funding targets include: $25 million in regular resources per year, $75 million in other resources per year, and a $50 million one-time capitalisation of its LDC Investment Fund.

Regular resources provide a foundation for UNCDF’s ability to innovate, ensure maximum presence in the LDCs, and provide robust support to the UN system at country level. Regular resources have decreased, at $10.8 million in contributions from 12 member states, $15m short of the Strategic Framework target of $25 million per year. This amount does not include the Biennial support budget or Programme support from the UN Development Programme— $3.9 million in 2020.

Full financing of the core resources envelope will allow UNCDF to meet unmet demand for innovative financing solutions; to expand presence from 31 to 40 LDCs in this Decade of Action; to ensure more robust (senior) representation on UN Country Teams for strategic financing expertise; and to deepen our cutting edge expertise on emerging finance models that can work for the poor in LDCs.

Donors contributed a total of $65.9 million of earmarked (non-core) resources for programming in 2020, a portion of which is multi-year funding.