Donor Requirements and CSO Performance: A Comparative Analysis of Core and Project Funding Mechanisms in Swedish Development Cooperation

Abstract This article examines how donor requirements affect Civil Society Organisations’ execution of foreign aid initiatives, comparing core and project funding mechanisms in development cooperation. Through a structured, focused comparison of two Latin American CSOs receiving funding from the Swedish International Development Cooperation Agency (SIDA), the research reveals that core funding, contrary to prevailing theories, has a more detrimental impact than project funding due to the nature, timing, and cost of its associated requirements. The analysis identifies variations in stakeholder impact across the aid chain, with intermediary organisations playing significant roles. The findings challenge assumptions about core funding's empowering effects, highlighting how multiple layers of requirements can impede operational effectiveness. The study contributes to scholarly understanding of donor-recipient dynamics while offering practical insights for improving aid delivery mechanisms. It suggests that enhancing aid effectiveness requires not merely simplified requirements, but a fundamental reconsideration of how donors structure their relationships with implementing CSOs.