How is the United Nations Funded?
OverviewThe way in which the UN is financed affects its ability to operate |
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This section, using data and analysis from the Financing the UN Development System Report produced annually with the Dag Hammarskjold Foundation, describes how UN resources are generated and allocated. Using the most up-to-date and reliable data available, it provides answers to a series of straightforward questions: How and by whom is the UN funded? Where and for what purposes are the UN’s resources allocated?
It also focuses on the quality, types and sources of UN funding: Is there a difference between funding for humanitarian purposes and financing for development assistance? What about trends in inter-agency pooled funds? How has funding from non-governmental contributors changed over time?
UN revenue
Total UN funding has grown steadily over the past decade. In 2010, the total revenue of the UN was US$ 39.6 billion. By 2019, total revenue amounted to US$ 56.9 billion, an increase of US$ 0.9 billion compared to 2018. While this increase is mainly due to actual growth in UN revenue, a small portion can be attributed to improved reporting. A detailed breakdown, by financial instrument, of total funding for 43 entities in 2019 can be explored in Figure 2.
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In 2019, the total UN revenue was US$ 57 billion |
Funding sources for the UN system
The UN is largely funded by governments. Almost three-quarters (72%) of total UN revenue in 2019 came from direct government contributions. 58% of total UN funding originated from the 29 UN Member States that are OECD-DAC members. In 2019, 15% of total UN revenue came from multilateral channels, much of which is indirect government investment via funds, international financial institutions and European Union institutions. UN funding from non-state actors remains relatively small (US$ 2.9 billion in 2019) but growing, especially from the private sector.
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Of total UN funding, ten Member State contributors provide >50% |
Funding for the UN system remains concentrated among a limited number of donors, with ten Member States providing more than 50% of the UN’s funding. The United States is the largest contributor by volume but, relative to the size of their respective economies, Member States like Norway and Sweden (each contributing approximately 0.3% of their GNI to the UN) stand out. China has emerged as a significant UN contributor and is now among the five top Member State contributors.
Figure 1
Funding sources for the UN system, 2019
58%of UN funding was earmarked in 2019 |
In 2019 fees and other revenue increased to
9% |
In 2019 of total UN funding, assessed contributions were
24% |
Figure 2
Deposits to UN inter-agency pooled funds 2010–2019 (US$ billion)
Inter-agency pooled funds
Funding for inter-agency pooled funds, a flexible instrument that facilitates multi-stakeholder collaboration, has grown steadily since 2015. In 2019, it amounted to US$ 3 billion, including US$ 1.8 billion and US$ 1.2 billion for humanitarian and development-related funds, respectively. By 2019, as a percentage of total earmarked funds for development, the share of inter-agency pooled funds had grown to 9%, close to the 2023 Funding Compact target of 10%. 11% of earmarked financing for humanitarian assistance was allocated to inter-agency pooled funding in 2019.
US$ 3 billionfor inter-agency pooled funds in 2019 |
UN funding and Official Development Assistance
The UN development system continues to be the largest and fastest growing channel for multilateral Overseas Development Assistance, but also remains the channel with the biggest share of earmarked funding. OECD-DAC countries contribute a higher proportion of earmarked funding to the UN system than they do to other multilateral institutions, such as EU institutions, the World Bank Group and the International Monetary Fund, and regional development banks. The proportion of earmarked UN funding from OECD-DAC countries has also grown substantially since 2010. In 2019, the UN received nearly US$ 26 billion in funding, of which 70% was earmarked, compared to 61% in 2010. UN entities’ traditional role in crisis and emergency responses is one of the factors behind the UN’s relatively large share of earmarked contributions.
In 2019 ODA to the UN was
US$ 26 billion |
Figure 3
Channels of total multilateral assistance from OECD-DAC countries, core and earmarked, 2010 and 2019 (US$ billion)
