Closed trust funds have in the past been created in agreement with a single donor and the contributions to the trust fund were restricted to that donor. The trust fund donor agreement also served as the terms of reference for the trust fund. Closed trust funds are now discouraged and cost sharing agreements should be used instead.
Allows donors to earmark their contribution to a project whose terms of reference falls within the broader trust fund terms of reference. From a donor’s perspective, the advantages of “cost sharing within a trust fund” include separate reporting of their contribution and the possibility of refunding resource balances to the donor rather than to the general resources of the trust fund. Replaced sub-trust funds.
The definition of fund level co-financing is a donor contribution to a trust fund where the contribution is not tied to a project. Because the donor contribution is not tied to a project a trust fund manager must be designated, who is responsible for managing the fund resources including the allocation of resources to projects.
These are trust funds established by UNDP to receive contributions from multiple donors for global, regional or broad thematic programmes, which usually consist of a number of projects. Their terms of reference outline their purpose, objectives and administrative arrangements.
Thematic Trust Funds are a type of open trust fund. They are a flexible co-financing modality designed to help UNDP align and focus its programmes around its goals, and to provide donors with an opportunity to demonstrate their commitment to this process.