Established in 2004 to administer the UNDG Iraq Trust Fund — the first inter-agency pooled fund established by the United Nations — the MPTFO designed and launched a common instrument that opened the door to a wide range of expertise in humanitarian assistance, recovery, reconstruction, and development. Investments helped foster alignment and greater coherence in international responses to complex situations. The success of this financial instrument led to its replication in different humanitarian, transitioning, and development settings.

The Peacebuilding Review highlighted the importance of pooled funding and, during the World Humanitarian Summit humanitarian, partners committed to double humanitarian pooled resources as part of the Grand Bargain. 

The effectiveness of pooled funds across a range of circumstances was underscored with the 2019 adoption of the United Nations Funding Compact (renewed in 2024), which included an ambitious effort to increase inter-agency pooled fund contributions for global, regional, and country-level development programmes.

As development and humanitarian contexts have changed, and country priorities shifted, the MPTFO has grown as well. Fund structures and instruments have advanced so partners can flexibly respond to emerging demands, using SDG results-based approaches that are in line with the latest UN reform guidelines and 2030 Agenda parameters.