Private contribution and surety by NGOs (FDW)

In order to be eligible for the Sustainable Water Fund programme, NGOs do not need to make a private contribution. Neither do they have to act as a guarantor for other partners.

Private contribution

The policy rules (pdf) of FDW define an NGO as 'not a business enterprise'. The contribution of an NGO does not fall under the heading of 'private contribution', which is the financial contribution to the project budget provided by the companies participating in the project.

The policy rules further state that a private contribution may include other grants, loans, third-party donations to or third-party investments in partners or in the partnership.

Financial assessment

The Netherlands Enterprise Agency (RVO.nl) assesses all financial records, among which are:

  • financial statements;
  • annual reports;
  • cash flow prognoses.

RVO.nl will also assess loans, guarantees, sureties, gifts, donations, grants, and investments  by third parties that are not project partners. And RVO.nl assesses donations from donors and all other freely available resources of the consortium and the project.

Ratios - including solvency, current, quick, cash flow, own contribution and financing ratios - will be considered by RVO.nl to be directional, rather than representative or decisive. When appraising your own contribution, we take into consideration allocated and freely spendable (earmarked and unlisted) gifts, donations and donations. These are listed to determine the freely available funds and cash. This allows your own contribution and the project to be funded.

When an NGO makes a contribution or stands surety for another project partner, RVO.nl will appraise the financial situation of the NGO.

RVO.nl wants to know that partners and enterprises have enough liquid assets and solvency. And that they can generate sufficient cash flow to provide their own future contribution and thus be able to finance their project. We look at the total financial picture – not just at specific results (profits or losses), liquid assets, bank balances and own capital (property and debts) at any time.

No surety needed for NGOs

RVO.nl does not ask for a guarantee or surety for itself or for the consortium. We do however ask surety of a company or partner who wants to make their own contribution but is unable to do so. That is why RVO.nl does not ask NGOs to act as a guarantor when they cannot comply with the ratios mentioned earlier because of their balance sheet or operational management.

This way, the guarantor does not need to stand surety for the entire sum for the entire duration of the project. The FDW programme does not want parties and organisations to make unnecessary costs or take financial risks.

Guarantees that have already been issued can be phased out. You can do this by submitting a statement by your accountant with the progress report. The accountant must state his findings about the expenses that were made and the origin and the type of your own contribution. RVO.nl will send a confirmation of the new amount for which the guarantee is valid on the basis of this statement.

Please note: determination of the subsidy takes place only at the end of the project. RVO.nl does not give approval based on the progress report. Neither do we make a determination in the interim.

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