Working with intermediary organisations
What intermediary organisations do, what local NGOs should ask for, and a checklist for a fair, workable relationship with the agency that passes funds to you.
Short answer
An intermediary is an organisation that sits between a donor and a local or national organisation and passes on funding or other support. A good intermediary supports, protects and shares credit with its local partners. Before you sign, ask who holds decisions, how much overhead you receive, whether you can speak to the donor, and how the relationship will be reviewed.
Key points
- An intermediary passes funding or support between a donor and a local organisation.
- Ask for a fair share of overhead, not only direct project costs.
- Ask for a way to talk to the donor, directly or through a group of partners.
- Agree capacity support that you choose, not support that is chosen for you.
- Review the relationship on a schedule, in both directions.
What is an intermediary organisation?
An intermediary is an organisation, network or mechanism that sits between donors and local and national organisations. It provides funding or other support. Intermediaries can be international or national. Being an intermediary is not a fixed status: the same organisation may pass funds to partners on one project and implement directly on another.
Many local NGOs in Myanmar meet donors only through an intermediary. This is common when a donor cannot manage many small grants, or when direct funding to local groups is not yet practical. If this is your situation, the quality of the relationship matters as much as the size of the grant.
What should a good intermediary do?
Guidance from the Grand Bargain localisation workstream says the intermediary's role should be understood as supporting, nurturing and overseeing local partners, so that partners can deliver the best results. In plain terms, a good intermediary:
- Includes you in design and decisions, not only in delivery.
- Covers your reasonable direct and indirect costs.
- Passes on multi-year and flexible funding where it receives it.
- Funds security needs and capacity support that you agree.
- Gives your organisation visibility in reports and communications.
- Helps you speak with the donor.
A good intermediary also learns from you. The guidance notes that an intermediary can be asked to report on what it learns from its local partners, which supports a "capacity sharing" approach. Read more in our article on from capacity building to capacity sharing.
Which questions should you ask before you sign?
Use the table below in your first meeting. Write down the answers.
| Topic | Question to ask |
|---|---|
| Decisions | Who decides on budget changes, and how fast? |
| Overhead | What indirect cost rate do we receive? What rate does the intermediary receive for the same funds? |
| Funding length | Is the grant multi-year? Is any of it flexible? |
| Donor access | Can we meet the donor, alone or with other partners? |
| Capacity support | Who chooses the topics? Is there a budget for it? |
| Visibility | Will our name appear in reports and public material? |
| Risk | Who carries the risk if a delivery problem is outside our control? |
| Reviews | When will we review the partnership, and can we give feedback? |
If an intermediary cannot answer, that is information. See also our guide on risk sharing between international and local partners.
How do you protect your organisation in the relationship?
Follow these five steps from the first meeting.
- Get the terms in writing. Rates, reporting dates, payment timing and decision rights belong in the agreement, not only in emails. Our article on what to include in a partnership agreement lists the main clauses.
- Keep your own records. Save budgets, approvals and reports in your own files. You may need them if staff change on either side.
- Report accurately and early. Tell the intermediary about delays or access problems when they happen. Early notice gives both sides time to adapt.
- Ask for feedback in both directions. A short review every six months works well. Ask what you could do better and what the intermediary could do better.
- Plan for the end. Ask what happens if funding stops. Our article on ending a partnership responsibly explains how to prepare.
What is the local intermediary model?
Charter for Change is a group of organisations committed to locally led humanitarian action. Its 2025 practice paper describes a model where a national actor becomes the intermediary, passing funding and wider support to a broader network of local and national actors in its context. International NGOs can give technical, compliance or capacity support while leaving financial management to the national actors.
For a Myanmar organisation, this model has benefits and costs. You are closer to the groups you support, and you understand their context. You also carry the duty of due diligence, monitoring and reporting. Before taking on the role, check that your finance and governance systems can cope. Our article on managing sub-grants as an intermediary covers the work in more detail.
What if the relationship is not working?
Start with a direct conversation, and use the agreement as the reference. If there is no change, involve a senior person on both sides. Join a network of local partners so that you can raise common issues together rather than alone. If the problem is about donor rules rather than the intermediary's choices, ask whether the intermediary can raise it with the donor on your behalf.
Always keep legal and contractual questions with a qualified adviser. Donor rules and national laws differ, and this article cannot replace advice on your agreement.
How EMPO can help
EMPO is a trusted, Yangon-based training and consultancy provider and one of Myanmar's leading names in practical NGO training, with 1,200+ people trained and 15 partner organisations. We work in English and Burmese, online and in person across Myanmar, on organisational development, proposal writing and training. We can help your team prepare for partnership negotiations and strengthen the systems intermediaries look for. See our services or contact us.
Sources
- Guidance note on arrangements between donors and intermediaries — Grand Bargain Localisation Workstream, 2020
- Intermediary Agencies & Locally Led Humanitarian Action (practice paper) — Charter for Change, 2025
Questions people ask
Is an intermediary the same as a donor?
No. A donor provides the money. An intermediary receives money from a donor and passes funding or other support to local partners. An organisation can be an intermediary in one project and a direct implementer in another.
Can a local NGO become an intermediary?
Yes. Some national NGOs already pass funds to smaller local groups. This is sometimes called the local intermediary model. It needs strong financial systems, clear policies and the trust of the groups you support.
What should I do if my intermediary does not pass on overhead?
Raise it early and in writing, using the budget and the agreement as your base. Ask what rate the intermediary receives for the same funds. If no change is possible, record the gap so you can price future work honestly.