The Trust, Accountability, and Inclusion (TAI) Collaborative has embarked on a new initiative to bolster support for transparency, participation, accountability, equity, and inclusion in fiscal policy, with a specific focus on budget spending, taxation, and sovereign debt. The project, initially labeled Fund Fiscal, is focused on increasing funding, particularly for civil society organizations. It also seeks to reignite donor interest and foster deeper connections with various sectors and cross-cutting issues. And we want to work through partnerships to drive renewed commitments.
Exploring Trends in International Funding
In the spring of 2024, TAI partnered with Gawain Kripke to identify opportunities and emerging trends in international funding related to these issues. Key questions for the scoping included:
Is funding increasing, steady, or declining? Why?
What will it mean for fiscal transparency and governance if donors are decreasing funding to the field?
What could be done to increase funding?
The resulting report, based on interviews, a survey, desk review, data analysis, and comments from an advisory group, highlights several key factors influencing current funding landscapes. These include shifting priorities, such as increased focus on climate issues, donor fatigue, budget constraints, and political sensitivities.
Below are key findings. For the longer report, see here.
Key Findings Shaping Our Strategy
Funding Pressures on Civil Society: Many civil society organizations are under financial strain, particularly those reliant on project-based grants. While philanthropic giving, both domestic and international, remains a vital funding source, frequent strategic shifts by foundations—often every three years—create instability in funding plans.
Barriers to Grantmaking: Most bilateral and multilateral organizations face formal or informal challenges when it comes to granting funds directly to civil society. Grant programs tend to focus more on research, training, and capacity-building efforts.
Public Sector Support: Funding from multilateral and other public entities for these issues appears stable or even increasing to public entities and technical advisors. (This is not to suggest that all the needs in this area are fulfilled, though!)
Cross-Sector Opportunities: No new major donors were identified as potential immediate contributors. Instead, cross-sector collaborations, particularly with funders in climate, gender equality, and democracy, emerged as a crucial area for exploration.
Looking Ahead
Our findings suggest that a single, isolated effort is unlikely to succeed - sadly, no “unicorn” donors are simply waiting to be asked to fund fiscal accountability! Instead, we are pursuing a multifaceted approach, ready to look for “windows of opportunity.” Our project plan through early 2025 includes the following:
Reiterating the Case for Tax Justice: We will continue to advocate for funding in tax justice issues, partnering with organizations like the Financial Transparency Coalition (FTC).
Connecting Climate and Fiscal Policy: By working closely with climate funders, we aim to support their integration of tax and debt issues into broader climate strategies and convenings.
Enhancing Understanding of the Financing for Development Process: We plan to raise philanthropic funders’ awareness of the process, highlighting key moments and opportunities for funding commitments.
Supporting Communications with a Funding Focus: We plan to develop accessible materials, place op-eds, and organize events to raise awareness and drive engagement. This should include working with civil society to highlight their stories and voices.
We welcome comments on our Fund Fiscal plan and are happy to share more about the Fund Fiscal scoping!