UNDP Innovative Finance Challenge (IFC): up to USD 20,000 for M4EG member municipalities
Verified by the editorial team 25 October 2026
Added to the catalogue Added to the catalogue from the 20 October GetGrant export, terms verified on the UNDP announcement page and in the IFC guidelines on the M4EG website
Summary
UNDP, with support from the EU and Slovakia, offers municipalities that are members of Mayors for Economic Growth up to USD 20,000 and expert advice to launch an innovative financing mechanism such as a revolving fund, municipal bonds or civic co-financing. Co-funding of at least 10% is required. Deadline - 13 November 2026.
About the call
The Innovative Finance Challenge is a joint call of the EU-funded Mayors for Economic Growth (M4EG) initiative and the City Experiment Fund (CEF) financed by the Slovak Ministry of Finance, run by the UNDP Istanbul Regional Hub. It helps municipalities in Ukraine, Armenia, Moldova and North Macedonia move from an idea to a working tool that brings new money into local development.
Each selected municipality receives tailored technical support and up to USD 20,000 to design and launch its solution: legal and financial analysis, stakeholder platforms and similar steps. Applicants can pick one of six solutions from the IFC catalogue (community land trust, property tax improvement, municipal asset management and monetisation, revolving fund, civic co-financing platform, municipal bonds) or propose their own. The solution must be new to the municipality and address a concrete financing bottleneck rather than act as a generic revenue tool. The municipality contributes at least 10% of the support in cash or in kind, and participation runs from January to November 2027.
For Ukrainian hromadas this is a rare chance to get UNDP expertise specifically on municipal finance while budgets are squeezed by the war. In Ukraine only M4EG members may apply, but a municipality can join the initiative before applying. NGOs and regional development agencies can join as partners as long as the local self-government body remains the lead applicant.
Who can apply
- Ukrainian local self-government bodies that are members of the Mayors for Economic Growth (M4EG) initiative
- Municipalities not yet in M4EG can first request membership and then apply
- Joint applications by several municipalities or with non-profits or development agencies, provided the lead applicant is a municipality
Who cannot apply
- NGOs as lead applicants - only as partners of a municipality
- Ukrainian municipalities that are not M4EG members and have not joined
What the funds are for
- Designing and launching revolving funds and civic co-financing platforms
- Municipal asset management and monetisation
- Property tax improvement, municipal bonds and community land trusts
- Legal and financial analysis and stakeholder engagement around the financing solution
- The municipality's own innovative solutions that remove a concrete financing constraint
What is not funded
- Debt, interest and provisions for future liabilities
- Purchase of land, buildings and vehicles
- Loans to third parties and currency exchange losses
- Standard donation crowdfunding or conventional grant schemes without an innovative component
Documents required
Forms and templates are on the call page
- Application form (Annex A) describing the financing bottleneck, the chosen solution, the implementation plan and the budget
- Letter or statement from the mayor or deputy mayor confirming participation, contact persons and co-funding of at least 10%
- For joint applications - a joint letter, MoU or other document formalising the partnership with a clear lead applicant
How to apply
- 1Check the municipality's M4EG membership or request to join through the UNDP Country Office in Ukraine
- 2Download the guidelines, the application form (Annex A) and the solutions catalogue (Annex B) from the M4EG website
- 3Apply through the online form linked in the UNDP announcement by 13 November 2026, following the Annex A instructions
- 4If shortlisted, take part in an assessment meeting in December 2026
Timeline
Questions and answers
- Can an NGO apply to the IFC?
- No, the lead applicant must be a local self-government body that is an M4EG member. NGOs and development agencies can join a joint application as partners.
- What if the municipality is not yet an M4EG member?
- Membership is mandatory in Ukraine, but a municipality can first request to join the initiative through the UNDP Country Office and then apply by 13 November 2026.
Change history
- Added: Added to the catalogue from the 20 October GetGrant export, terms verified on the UNDP announcement page and in the IFC guidelines on the M4EG website
Donor contacts
Email: mustafa.sait-ametov@undp.org
Website: eum4eg.com
