Who Finances the United Nations?

The United Nations (UN) is funded by a combination of assessed and voluntary contributions from its member states. This dual funding mechanism is crucial for the UN to carry out its wide-ranging activities, from peacekeeping operations to humanitarian aid and sustainable development initiatives.

Assessed Contributions: A Mandatory Obligation

The core of the UN’s financial stability comes from assessed contributions. These are mandatory payments that each member state is obligated to make, determined by a formula based on the country’s relative capacity to pay. This capacity is primarily calculated using gross national income (GNI) and population, with adjustments to reflect factors like low per capita income. A ceiling is also in place, limiting the maximum contribution any single member state can make. The Committee on Contributions, a subsidiary body of the General Assembly, reviews and advises on the scale of assessments.

The assessed contributions cover the UN’s regular budget, which funds the organization’s administrative and operational costs, including the Secretariat, General Assembly, Security Council, and various other departments and programs. They also fund peacekeeping operations, although these are budgeted separately.

Currently, the United States is the largest contributor to the UN’s regular budget, followed by China, Japan, Germany, and the United Kingdom. These five countries typically contribute a significant portion of the total assessed contributions.

Voluntary Contributions: Beyond the Mandate

Beyond the assessed contributions, the UN relies heavily on voluntary contributions. These are donations made by member states, as well as intergovernmental organizations, private sector entities, foundations, and individuals. These contributions are earmarked for specific programs, agencies, and funds, such as the United Nations Development Programme (UNDP), UNICEF, the World Food Programme (WFP), and the Office of the United Nations High Commissioner for Refugees (UNHCR).

Voluntary contributions offer flexibility, allowing member states to support initiatives aligned with their foreign policy priorities. They often supplement the regular budget, enabling the UN to expand its reach and address emerging global challenges more effectively. Humanitarian assistance, development projects, and specialized research often rely heavily on voluntary funding.

The same countries that are the biggest contributors to the regular budget also tend to be major providers of voluntary contributions, though the specific ranking can vary depending on the year and the programs being funded.

Challenges and Considerations

The UN’s funding model faces several challenges. Delays in payments or the withholding of assessed contributions by member states can create budget shortfalls, hindering the UN’s ability to implement its mandates. The reliance on voluntary contributions can also create instability, as funding is not guaranteed and can fluctuate based on donor priorities.

Furthermore, debates often arise regarding the fairness of the assessment formula and the perceived influence of major donors. Calls for reform of the funding mechanism are frequent, aiming to ensure greater equity, predictability, and sustainability in the UN’s financial resources.