cofinansiering

Co-financing, or cofinansiering, is a funding arrangement in which a project’s total cost is covered by multiple sources. Typically at least two actors—such as a government department, a private company, a non-profit, or an international donor—contribute cash, in-kind services, or a combination thereof. The contributions are defined in formal agreements and are used to meet program rules for eligibility and accountability.

In practice, the grantor often specifies a co-financing rate, i.e., the share of eligible costs that must be covered by partners other than the primary grant. The remaining costs may be financed by the grant itself, cash from other sources, or a mix. In-kind contributions, such as staff time, equipment, or facilities, are assessed at market value and counted toward the partner’s share.

Common contexts include European Union structural and investment funds, national development programs, research and innovation projects, and public-private partnerships. Co-financing can also occur in humanitarian aid and international assistance programs where multiple donors contribute.

Advantages include access to larger budgets, risk sharing, and leveraging additional resources. Challenges include coordinating multiple stakeholders, ensuring compliance with diverse rules, accurately valuing in-kind contributions, and potential delays in disbursement and reporting.

Overall, cofinancing is a widely used mechanism to mobilize resources for public, development, and research projects, balancing requirements of funding programs with the capacity and interests of partner organizations.