5. Approval and signing of donor (project) contract and IPIA


  • Review contractual aspects before signing the donor contract.
  • Sign an IPIA as soon as possible after signing the donor project contract.

Before signing the donor contract (otherwise known as an Agreement, Grant, Service Order, etc.), both the CARE International Member and the CO have properly reviewed the donor contract and made an informed decision to accept the terms and conditions. The guidelines in sections 5.1 and 5.2 will assist in this.

  • Remind the CARE International Member that, before signing the donor contract, they should send a copy to the CO for checking and approval.
  • If required, ask the CARE International Member to provide the original and translated version of the donor contract to the CO. If it is not feasible to translate the complete donor contract, ask for translation of the key sections required to allow the CO to make an informed decision to approve the donor contract.
  • Review the donor contract to ensure that the CO can comply with the terms and conditions included in the donor contract, for example:
    • Utilise any checklist that the applicable CARE International Member may require before approving a donor contract.
    • Check that reporting time frames can be complied with.
    • Ensure that it is clear as to when expenses can be charged from.
    • Check that the donor-approved proposal identified by the contract is the same as the proposal submitted to the CARE International Member. Note any differences if the approved donor version is different from that originally submitted and ensure the donor-approved version is filed as the final.
    • Determine if the proposed project is still appropriate, or if the situation has changed and there are significant adjustments required to the project design.
    • Identify whether there are issues that should be advised to/agreed with the donor before, or at least at, the contract signing.
  • Arrange for approval to sign the donor contract to be advised to CARE International Member in accordance with CO procedures.
  • Ensure the contract is reviewed and approved by the necessary deadlines.
  • As appropriate, request the assistance of the CARE International Member (e.g. legal department) for guidance on donor contracts.
  • Request training/support from the CARE International Member regarding donor regulations if required, such as procurement training to ensure contract compliance.

An IPIA should be signed as soon as possible after signing the donor project contract. For many CARE International Members, this is required before funds will be transferred. Complete the following steps:

  • Request that the CARE International Member prepare a draft IPIA for the project (refer to Annex 10.5 IPIA).
  • Review draft IPIAs received from the CARE International Member. Ensure:
    • the IPIA is consistent with the donor contract
    • the CO can meet the stated requirements, including reporting time frames
    • the payment schedule and associated conditions will ensure the required cash flow throughout the life of the project (unless otherwise agreed)
    • what flexibility the donor and/or CARE International Member allows for variations in the project proposal without prior approval
    • what the processes and time frames are to seek approval from the donor and/or the CARE International Member.
  • Before signing, advise the CARE International Member of any IPIA issues that require clarification or changing, then once these are resolved, arrange for the IPIA to be signed.