Summary: In response to budget constraints and concerns about effectiveness, major donors, including the United States, are reassessing their foreign aid programs and strategies. The method of delivery is one of the primary areas being reexamined. Although most U.S. foreign aid is still delivered on a government-to-government basis, the current administration had pledged to boost the percentage of U.S. assistance being channeled through nongovernmental organizations during the next five years. Some congressional proposals have recommended that U.S. development aid be channeled through nongovernmental organizations, including private voluntary organizations. Support for a greater private voluntary organization role in delivery assistance seems to stem from general disappointment with the results of more than 40 years of government-to-government assistance and a perception that private groups are better able to identify development needs and deliver help. This report analyzes (1) private voluntary organizations' role in delivery U.S. foreign assistance and potential issues and implications of increasing their role in delivery aid, including accountability issues; (2) 26 private voluntary organization projects and whether they were achieving their objectives; and (3) the extent to which U.S. private voluntary organizations are dependent on U.S. government funding.
