Since its inception, IDLO has been a nonprofit organization.  IDLO receives voluntary contributions both for specific projects and for the organization’s general operations.  This support is provided by a variety of donors, including states, multilateral organizations and private sector sources.

Unlike most intergovernmental organizations, IDLO’s member states have not been obliged to make annual contributions.  While this facilitates membership by the poorest countries, it places additional importance on resource mobilization, particularly for unrestricted grants to support the basic institutional and management functions.

IDLO takes and promotes a global stakeholder view of aid effectiveness.  This ensures that resources are managed with the end goal of maximizing effectiveness for both the donor and recipient.

IDLO’s position as a thought leader in rule of law provides unique benefits to stakeholders.  The organization's ability to transform its research and development work into programs with tangible results and impact sets it apart.

Results Based Management (RBM)

RBM goes beyond managing the basic financials of the organization and delves into a broader approach to resource management.

IDLO continues to review its financial systems and practices in light of best practices in RBM, and is gradually adopting a new model for budget preparation and monitoring.

RBM enables IDLO to establish improved results oriented planning and program implementation, set clear accountabilities and increase transparency in communicating results achieved to its stakeholders.

 IDLO’s Model

IDLO's financial model allows for direct allocation of donor contributions to specific cost categories and program activities.

The model’s primary cost drivers or categories as defined in the 2010 Annual Management Plan are:

• Institutional Development and Management
• Program of Work

For more information, please see IDLO's RBM Model or the 2010 Annual Management Plan

Figure 1 illustrates the nature of IDLO’s funding.  The chart demonstrates the disparity between program specific funding and general donations.  The end result of this funding structure is organizational output that is extremely oriented towards action and results.  The majority of IDLO's funding is intended to achieve specific goals, and the nature of the organizational costs (Figure 2) demonstrates that this is indeed where it is being spent.   

                                                                      Figure 1 

 

Cost

IDLO’s costs are dominated by projects under implementation, as shown in Figure 2 below.  This is indicative of the current nature of IDLO’s operations, allowing the transition from donation to implementation to be very direct and efficient compared with larger organizations.  The General and Administrative expenses, which are a small portion of total expenditure, are also kept as low as possible.   

                                                                     Figure 2

 

The financial results of the Organization can be found in the Audited Financial Statements.

Audited Financial Results 2008 (Document in pdf)