Europäischer Rechnungshof - European Court of Auditors
Auditors: EU funding for NGOs is too opaque
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Press release
Luxembourg, 7 April 2025
Auditors: EU funding for NGOs is too opaque
- Over €7 billion of EU funding granted to NGOs in internal policies in 2021-2023
- Information on EU funds granted to NGOs is fragmented and unreliable
- NGOs’ lobbying and advocacy activities are not clearly disclosed
EU funding granted to non-governmental organisations (NGOs) suffers from a lack of transparency, according to a new report by the European Court of Auditors (ECA). Despite improvements, information on EU funding awarded to NGOs that are active in the bloc’s internal policies remains inaccurate and incomplete. The European Commission did not properly disclose certain EU-funded advocacy activities such as lobbying, and there are no active checks to ensure that the funded NGOs respect EU values, something which exposes the EU to reputational risk.
Non-governmental and other civil society organisations empower citizens’ participation in EU democratic policymaking through ongoing dialogue, which must be transparent. To hold public decision-makers to account, citizens must know to whom and for what purpose EU funds are awarded, but also how they are used and whether recipients respect EU values. Public interest in scaling up transparency requirements for NGOs has increased since the “Qatargate” scandal in 2022.
“Transparency is key to ensuring credible participation by NGOs in EU policymaking,” said Laima Andrikienė, the ECA Member in charge of the report. “However, despite some progress since our last audit, the picture of EU funding for NGOs remains hazy, as information on EU funding – including lobbying – is neither reliable nor transparent.”
NGOs were awarded €7.4 billion in the EU’s key internal policies such as cohesion, research, migration and the environment between 2021 and 2023, €4.8 billion of which was granted by the Commission and €2.6 billion by member states. However, these figures should be taken with caution, as there is no reliable overview of EU money paid to NGOs, the auditors warn. The information is published in a fragmented way, which hampers transparency, impedes analysis of whether EU funds are overly concentrated on a small number of NGOs, and restricts insight into the role of NGOs in EU policies.
Although the Commission made progress in collecting information on EU funding granted to NGOs, weaknesses persist in the way that information is disclosed. Moreover, member states do not monitor or report on the EU funding granted to NGOs, and the expected regulatory improvements will not require them to report on payments.
Across EU countries, the definition of what an NGO is varies, and is rarely enshrined in national legislation. In 2024, the EU essentially defined an NGO as being independent from government and a non-profit organisation. While this is a step in the right direction, the definition alone cannot ensure that NGOs are correctly classified in the EU’s financial transparency system. This is because entities self-declare as NGOs, and the Commission does not check important aspects of their status, including whether a government exerts significant influence over their governing bodies or whether an NGO pursues its members’ commercial interests. For example, one large research institute was categorised as an NGO while its governing body was composed solely of government representatives.
The Commission did not clearly disclose the information it held on NGO advocacy activities that were financed by EU grants. Also, it was only during the audit that the Commission issued guidance that grant agreements should not require recipients to lobby EU institutions. Furthermore, EU fund managers do not proactively search for potential NGO breaches of EU values, such as the rule of law and human rights, but rely mainly on self-declarations. Checks on funding sources that can provide useful information about who stands behind NGOs are also lacking.
Background information
The EU budget finances activities regardless of whether they are carried out by NGOs or other types of entity. NGOs are diverse in terms of size or areas of activity, which can range from social inclusion to environmental protection and research. They can receive EU grants to implement a project, like any other recipient, or merely because they are NGOs, in order to cover a significant part of their operating costs. Over 12 000 NGOs received EU grants between 2021 and 2023. Over the past decade, a substantial part of the Commission’s direct funding went to a small number of NGOs.
The audit examines EU programmes such as the European Social Fund Plus, Horizon Europe, AMIF and LIFE, and looks at the situation in different member states. This follows the European Parliament’s call for greater transparency in EU funding, including NGOs, and their important role in democratic policymaking. The report comes against the backdrop of recently heightened public and political interest in EU funding for NGOs.
Special report 11/2025, “Transparency of EU funding granted to NGOs: despite progress, the overview is still not reliable”, is available on the ECA website. It follows the ECA’s 2018 audit report on EU funding granted to NGOs in external action policy and the 2024 special report on the EU’s transparency register.
Contact:
ECA press office: press@eca.europa.eu
Damijan Fišer M: (+352) 621 552 224