We’re talking about the different types of donors, where they get their funding from and how they operate. In my last blog we talked about Multilateral Grantmaking Organisations. Today I’d like to introduce you to Foreign Governments. 

Definition of a Foreign Government (as a Funder for NPOs)

A foreign government is a national government that provides financial support to NPOs outside its own country, usually as part of its international aid, development, or diplomatic efforts. These governments fund projects that align with their foreign policy objectives, humanitarian goals, or commitments to global development. Some well-known foreign government funders include USAID (United States), FCDO (United Kingdom), Global Affairs Canada and GIZ (Germany).

How Foreign Governments Receive Their Funding

Foreign governments allocate funds for international aid and development from their national budgets. These funds typically come from:

  • Tax revenue – collected from citizens and businesses.
  • Official development assistance (ODA) budgets – dedicated to helping low- and middle-income countries.
  • Special grants or parliamentary allocations – approved for humanitarian or emergency aid.

How Foreign Governments Operate as Funders

Foreign governments usually fund NGOs through structured programs managed by their international development agencies, embassies, or specialized departments. Their funding can take different forms, such as:

  • Bilateral aid – direct funding agreements between the donor government and a recipient country or NPO.
  • Grants and contracts – NPOs apply for funding through competitive grant programs.
  • Partnership funding – governments work with NPOs on long-term development projects.

What Foreign Governments are looking for in funding partners

To receive funding, NPOs must meet strict eligibility criteria, follow structured reporting requirements, and demonstrate measurable impact. 

I hope this gives a little more insight into this potential funder. Don’t be deterred by the “foreign” part as these funders are great partners to the programmes that they support. 

Remember, donors, like people, are all different. When applying to a foreign government for funding, make sure that you meet their criteria, that your projects show measurable impact and that you have strong reporting in place. 

Please contact us if you would like some assistance in evaluating and answering a funding call from a foreign government – our team of NPO specialists is on standby.