A pooled fund is a mechanism used to receive contributions from multiple financial partners and allocate such resources to multiple implementing entities to support specific national, regional or global development priorities. These open-ended funds operate as pass-through mechanisms and as such do not require all participating organizations to comply with the operating procedures of a lead agency. Instead, pooled funds offer a flexible mechanism that enables participating organizations to handle implementation according to their own operating procedures for procurement and financial management. By avoiding any duplication of operating procedures, pass-through mechanisms minimize implementation delays and transaction costs.
Pooled financing mechanisms operate in a wide range of contexts, as well as on different geopolitical scales (i.e. global, regional, national and sub-national funds). Furthermore, they can either be UN or nationally managed. They may operate through a single or multiple funding windows, based on the scope and complexity of programmatic goals and the number and diversity of implementing partners. The main pooled mechanisms currently used by the UN system are UN Multi-Donor Trust Funds (MDTFs), National MDTFs and stand-alone Joint Programmes (JPs).
Notwithstanding their diversity, various funds have a number of common design and governance features, ensuring a strong division of responsibilities between fund administration, operation and implementation. The administrator holds and manages funds in trust, providing tools for ensuring transparency, tracking results and reporting. The steering committee guides resource allocation and operations with support from the secretariat, while implementation is the domain of the entities that receive financial resources to carry out approved activities in order to achieve the fund’s planned results.
For more information please download publication
"Financing Development Together"