The increased participation of PVOs in the country development strategy process and the strengthened FVA and PPC role in the Agency's CDSS and ABS review processes will ensure responsiveness to the 12 percent Congressional earmark and 16 percent funding target. The legislated 20 percent non-USC funding requirement will be applied in determining whether a U.S. PVO qualifies for grants available under the PVO grant program. An organization should obtain at least 20 percent of its total annual financial resources for its international programs from non-USG sources, with a preference given for private funding, in order to qualify for matching grants, operational program grants and institution building support. In the intervening period, the Agency encourages and will monitor a progressive phase-in towards meeting this target on the part of current PVO grantees. AID links the concepts of cost-sharing and program independence in its grant relationships with PVOs.
AID gives PVOs which cost-share greater independence to program funds.
Even when serving in an intermediary role, the PVO's relationship with AID should not result in a loss of the PVO's private and independent character since, without independence, the fundamental values associated with AID's working with PVOs are called into question. Congress direction to AID to introduce non-USG cash funding requirements as a determinant of PVO grant eligibility is designed to address this potential problem. Emphasis should be placed on utilization of existing U.S. PVO capacity to undertake field programs. AID has over the years helped a number of U.S. PVOs to develop their capacity to plan and carry-out international development activities. PVO institutional capacity can be done more selectively.