GLOBAL APPEAL 2025 EXECUTIVE SUMMARY I FINANCIAL REQUIREMENTS Resource mobilization in 2025 Over the past year, global events have created a complex fundraising environment that is posing challenges in raising resources from both the public and the private sectors. UNHCR will need to take these into consideration in how we mobilize resources for 2025. Changes in administration often take time to embed, with knock-on impact for funding to organizations like UNHCR. Voters in these countries, who make up a majority of UNHCR’s individual givers, naturally look at the situation within their own national borders. First, while total overseas development assistance (ODA) itself is not decreasing2, this is the case for some of UNHCR’s major government donors. Moreover, the in-donor refugee costs (ODA that is spent to assist refugees on the donor State’s own territory) remain above previous peak levels in 2015-2017. In 2023, this accounted for more than 25% of total ODA in seven DAC countries. Third, the conflict in Gaza and the wider Middle East has also presented global fundraising challenges due to its highly complex nature and UNHCR’s mandate, which does not cover Palestinian refugees under the mandate of UNRWA. Second, many of the world’s largest democracies are undergoing national elections in 2024, with refugees and migrants featuring as hot button issues. Elections often present a period of introspection which can give rise to xenophobia, especially when fuelled by misinformation and hate speech. Fourth, the main pooled funds from which UNHCR seeks funding, such as the Central Emergency Response Fund, are themselves facing resource constraints. In such an environment it is important that we remain vigilant for new and innovative ways of raising funds from the public and private sectors and that we nurture and develop the partnerships we already have. 2 Total ODA from DAC donors increased to US$223.7 billion, or 0.37% of countries' combined GNI, a 1.8% increase in real terms compared to 2022; see Donor Updates in Brief: 2023 OECD Preliminary Data (donortracker.org) Raising funds from the public sector Governments and the EU continue to be UNHCR’s main financial supporters by significant margins, contributing 86% of our income as of the end of October. Meanwhile, the percentage of contributions from pooled funds has dropped significantly. We are concerned that several government donors are communicating that less humanitarian funding will be available in 2025. Some have announced returns to pre-COVID 19 levels and/or that there will be less flexible funding and a greater emphasis on local (tightly earmarked) fundraising. Moreover, UNHCR, like many humanitarian partners, is facing increased unpredictability, as well as an uptick in politically motivated earmarking, conditions and restrictions. 17 UNHCR GLOBAL APPEAL 2025 A cut in funding not only has obvious humanitarian repercussions, it also threatens to undermine efforts to support countries that are including refugee populations in their national systems and services, which would help build their resilience and lessen their need for donor funding in the medium- to long-term. Thus, lower funding now threatens to increase needs in the future, entrenching a deep funding gap. Against this background, UNHCR continues to appeal for quantity and quality of funding across a range of donors to allow the organization to deliver on its mandate. At the same time, we continue to explore more efficient and innovative ways to protect and pursue solutions.