Non-governmental organisations

Luxembourg’s Development Cooperation attaches considerable importance to the role and activities of non-governmental development organisations (NGDOs). In 2023, 91 non-profit associations or foundations had ministerial approval from the Ministry, giving them the status of NGDOs. During 2023, 24 multiannual development framework agreements were co-financed. In addition, 29 new development projects were supported following the two calls for proposals launched by the Ministry.

With regard to the awareness-raising and development education component (SENS/ED) in Luxembourg, 15 multiannual framework agreements (2022-2024) were supported and 12 annual projects received subsidies from the Ministry. The two projects Rethink Your Clothes and CITIM, which have been funded since 2022, expire at the end of 2024. The Ministry decided, starting 1 January 2024, to extend the duration of the SENS/ED framework agreements from three to four years and to harmonise the co-financing rate at 80% for SENS/ED subsidies. The review of the methodology applied to grant applications in the field of SENS/ED in Luxembourg is in progress. The new methodology will be targeted towards impact measurement and will be more suited to the SENS/ED work by Luxembourg’s NGDOs.

Following the conclusions of the FATF mutual evaluation report, and in particular recommendation 8, the Ministry decided to use the expertise of an external consultant to develop a tool to deliver a risk-based approach for accredited NGDOs. The tool will consist of proportionate risk-based supervision on the one hand and measures to mitigate risk, on the other. It should be recalled that recommendation 8 aims to ensure that non-profit organisations (NPOs) are not exploited by terrorist organisations seeking to (i) present themselves as legitimate entities; (ii) exploit NPOs for the purpose of financing terrorism, including in order to circumvent asset-freezing measures; and (iii) conceal or obscure the clandestine diversion of funds intended for legitimate purposes but diverted to terrorist aims. At the end of 2023, a questionnaire was sent to all accredited NGDOs to obtain an initial analysis of the risks of terrorist financing in the sector.

The Ministry continued in 2023 to work in collaboration with the Cercle de coopération on the self-help guide for NGDOs, which gives them tools to prevent, detect and deal with cases of sexual exploitation and abuse and harassment that may arise within their organisations in Luxembourg and within partner organisations. The guide is currently being finalised.