How the Fund Works
The CGIAR Fund is a new multi-donor, multi-year funding mechanism that provides strategic financing to support agricultural research. It finances research aligned with the Strategy and Results Framework developed by the Consortium of CGIAR-supported Centers and endorsed by the Funders Forum to establish common goals, objectives and results for the CGIAR partnership. The Fund finances CGIAR Research Programs(CRPs), ambitious research initiatives implemented by the Consortium of CGIAR-supported Centers and their partners to operationalize the strategy. Fund resources are provided to the Consortium on a contractual basis through performance agreements.
Fund Donors may designate their contribution to one or more of three funding “Windows”:
- Window 1 ‑ Contributions to Window 1 represent the least restricted type of funding. The Fund Council sets overall priorities and makes specific decisions about the use of Window 1 Funds such as allocation to CGIAR Research Programs (CRPs), payment of System Costs and any other use required to achieve the CGIAR mission;
- Window 2 – Contributions to Window 2 are designated by Fund Donors to one or more specific CRPs. For each approved CRP, a sub-account is created to which donors may allocate funds. Once Window 2 funds are allocated to a given CRP, they flow to the Lead Center implementing the CRP;
- Window 3 – Window 3 contributions are the most restricted type of funding, consisting of funds that Fund Donors wish to allocate to specific Centers. Neither the Consortium nor the Fund Council makes decisions about the use of Window 3 funds. Within 2 years after the CGIAR Fund’s establishment, the Fund Council will review the use of Window 3 in consultation with the Consortium Board.
For more detailed information on the three Windows, please refer to the CGIAR Fund Governance Framework paper.
Donors contributing to the Fund may designate their resources to any of these windows. However, they are encouraged to contribute to Window 1 (unrestricted funding) to maximize coordination and harmonization. While donors are strongly encouraged to channel their resources through the fund, bilateral funding continues. In cases where such funding is provided, it should be consistent with the agreed Strategy and Results Framework.
The Fund Council, the decision-making body of the Fund, takes decisions on resource allocation on behalf of all Fund Donors for Window 1. For Window 2, the Fund Council plays an equalizing role, advising donors to channel part of their resources to underfunded programs in the event that one or more program is overfunded. In supporting a move to program funding, the Fund Council will ensure the continued existence of appropriate funding mechanisms for mission critical items such as gene banks and essential capital improvements.
The World Bank, as trustee, provides the following limited trustee functions:
· it holds in trust the funds transferred by Fund Donors under Trust Fund Administration Agreements;
· it serves as an agent of the Fund Council in disbursing Fund resources based on specific instructions from the Fund Council and through Fund Transfer Agreements between the World Bank and the Consortium;
· it provides regular reports on its Trustee activities to the Fund Council, Fund Donors, and the Consortium; and
· it is not responsible for supervising use of funds nor any other form of supervision.