Non-Governmental Organisations
Luxembourg Development Cooperation attaches great importance to the role and activities of non-governmental development organisations (NGDOs), which, as representatives of civil society, act as a bridge between local populations and the international community in defending the rights of communities. In 2024, 90 non-profit associations or foundations had approval from the Ministry, which gives them the status of NGDOs and makes them eligible for subsidies from the Ministry.
During 2024, 23 framework agreements and 91 development projects were co-financed in the Global South. In the field of awareness-raising and education for development (AR/ED) in Luxembourg, 15 framework and multiannual agreements (2022-2024) and 11 annual projects received subsidies from the Ministry. In addition, 2 multiannual AR/ED initiatives were funded: the Rethink Your Clothes campaign and CITIM (the Third World Information Centre).
In 2024, the Ministry decided to review its cooperation modalities with NGDOs in the AR/ED sector. Building on the measures adopted in 2023 to enhance the impact of actions – such as extending the duration of framework agreements, harmonising co-financing rates, expanding eligibility for co-financing to cover business travel other than field visits, and developing a methodology specific to the AR/ED sector – the Ministry is embarking on a new step forward in collaboration with NGDOs. This approach aims to deepen impact measurement by replacing calls for project proposals with enhanced collaboration between NGDOs.
As part of its 2023 mutual evaluation report, the Financial Action Task Force (FATF) noted that the Ministry needed to (i) develop and implement procedures to apply a risk-based approach to overseeing the NGDO sector, and (ii) conduct systematic sector awareness-raising to improve understanding of the risks of fraud, misappropriation of funds, money laundering, terrorist financing, or any other illegal activity linked to the use of Ministry funds.
In response to the report’s findings, and specifically Recommendation 8, the Ministry has designed a tool to apply a risk-based approach to accredited NGDOs. This tool aims to strike a balance between proportionate oversight and appropriate mitigation measures. Recommendation 8 seeks to ensure that non-profit organisations (NPOs) are not exploited by terrorist organisations seeking to (i) present themselves as legitimate entities; (ii) channel funds through NPOs to terrorist financing, including evading asset freezes; and (iii) conceal or obscure the covert diversion of funds from legitimate purposes to terrorist objectives.
Lastly, in 2024, in consultation with the Luxembourg NGDOs’ Cercle de Coopération, the Ministry launched a self-assessment guide on the Charter against sexual harassment, exploitation and abuse. This initiative was launched publicly through an information session organised in collaboration with the NGDOs’ Cercle de Coopération, coinciding with the publication of the guide on the websites of the Ministry and of the Cercle de Coopération. After using the guide, NGDOs took a knowledge test, with a certificate showing they had passed the test serving as a mandatory condition for maintaining their ministerial accreditation.
The cessation of the activities of Fondation Caritas Luxembourg (FCL) marked the loss of a significant partner in both humanitarian action and development cooperation. FCL was well established in humanitarian operations in countries such as Ukraine, South Sudan and Syria and had recognised expertise in key themes such as food security. In terms of development cooperation, FCL was a key partner in Mali, Laos and Kosovo.
After discussions with FCL representatives, the Ministry decided to support four of FCL’s local partners in Moldova, Kosovo, Turkey and Mali, allocating a total of €541,357. In 2025, Luxembourg will provide €1,082,570 to Dutch Caritas (Stichting Cordaid) to finance the operation of health facilities in South Sudan and to develop an exit strategy to close the project.
On the bilateral front, LuxDev will ensure the continuity of the disaster risk reduction project in Laos, with funding of approximately €1.25 million over a three-year period. In Mali, LuxDev is now working with Caritas Switzerland, which will carry forward key actions to achieve the initially planned results, using the remaining €289,229 from the original budget.
Caritas has also played an active role in Luxembourg in the field of awareness-raising and education for development, through two multiannual programmes for the 2022-2024 period. One of them, the Rethink Your Clothes campaign, was conducted in partnership with the NGO Fairtrade Lëtzebuerg, which has now taken over its management and expanded its activities to ensure the programme’s continuity and coherence. Among the achievements of this campaign, the Lët’z Refashion centre, dedicated to sustainable fashion, has been taken over by HUT (Héllef um Terrain, the new entity continuing FCL’s activities in Luxembourg). The centre will benefit in the future from the support of new donors, exemplifying the durability of the actions launched within the framework of Rethink Your Clothes.