The National Endowment for Democracy (NED) is a nonprofit foundation with the singular mission to advance democracy and freedom around the world. It is governed by a bipartisan Board of Directors and is committed to high ethical standards, operational excellence and strict oversight and accountability. NED offers a unique and effective approach to strengthening democratic institutions and values worldwide, fostering long-term partnerships with democratic actors in challenging environments.
Governance
NED’s bipartisan Board of Directors includes Members of Congress, prominent academics, foreign policy experts, former diplomats and policymakers, business and labor representatives, and nonprofit leaders. The Board is responsible for nominating and approving members, who may serve a maximum of three three-year terms. No members of the Board are appointed by the U.S. government.
The Board maintains a balance of party affiliations and independents and includes two members from the House and two honorary members from the Senate, with a Republican and a Democrat from each chamber. Board members’ distinguished career experience informs the strategic guidance and oversight they provide to the Endowment. Any political views remain outside of their NED responsibilities; partisanship plays no role in NED’s work and does not arise in board discussions. The Board shares a steadfast belief in the universal value of democracy and a commitment to supporting those around the world striving for freedom.
The Board sets strategic direction, ensures all funds are used only for grants and activities consistent with the purposes of NED stated in the NED Act and its Articles of Incorporation, selects and oversees the President, and ensures programmatic and financial accountability. The President leads the day-to-day management of the Endowment, including implementing the strategic plan, overseeing programs, managing staff, and ensuring operational excellence. This separation of Board and management roles ensures proper governance and responsible execution.
The Board meets at least three times annually to oversee the implementation of the strategic plan, to approve grants, and to ensure programmatic and financial accountability. The Budget, Audit, and Administration Committee is responsible for the audit process, financial reporting, risk management, compliance and internal controls. Eight subcommittees that are led by Board members with regional and thematic expertise oversee the programmatic work between board meetings. The committees’ oversight responsibilities include briefings to the entire Board in person and in writing.
Accountability and Oversight
NED takes seriously its stewardship of U.S. taxpayer funds and is fully accountable to Congress. In addition to extensive oversight by its governing Board (described above), NED recognizes that its unique status as a publicly funded nongovernmental organization demands special transparency and accountability.
- Congressional Oversight: As required by law, NED submits an annual plan to Congress, which sets out country-specific and strategic priorities for the year. NED also provides regular updates and briefings to Congress and timely responses to investigative and oversight requests. NED leadership and experts frequently testify before Congress.
- Executive Branch Review: By statute, NED is subject to review by the State Department’s Office of the Inspector General to ensure comprehensive oversight of its operations; its grantmaking activities are also available to the Department. NED staff consults regularly with the State Department and the U.S. Agency for International Development.
- Independent and GAO Audits: Independent auditors and the Government Accountability Office (GAO) examine NED’s financial and operational practices to ensure compliance with best practices.
- Public Accountability: NED submits annual filings with the Internal Revenue Service to support its status as a 501(c)3 public charity. NED is also subject to the Freedom of Information Act (FOIA), reinforcing its commitment to public transparency and accountability. Guidance on FOIA requests for NED information can be found here.
- Public Representation: NED leadership and senior staff regularly present its work to audiences in Washington, the United States and around the world. A great deal of information about NED’s work is available on its website and in its annual reports.
NED’s Grantmaking and Review, Monitoring and Evaluation
NED’s work is based on the principle that freedom is a universal human aspiration held in common in the character and traditions of all cultures. No single election achieves democracy, and democracy does not need to replicate the model of any one nation. Rather, it must be grounded in the aspirations and energy of local citizens.
NED makes grants based on a rigorous assessment of the effectiveness and impact of potential projects and is designed to ensure responsible stewardship of taxpayer funds. A grant proposal review begins with a detailed evaluation of an applicant: assessing its organizational systems, consulting with the organization’s staff and frequently board members, verifying references, analyzing media coverage, and reviewing past work. Staff also consider alignment with NED’s mission and strategy, organizational competence, past performance, and the potential impact of the proposed grant. Each proposal goes through a multi-layer review, which includes the regional or thematic director, the Vice President for Programs, the Vice President for Grant Operations, the President and CEO, and NED board members.
Once approved for a grant, NED maintains close communication with grantees to monitor compliance with project objectives and federal funding requirements. This includes thorough reviews of narrative, evaluation, and financial reports, extended field visits, and cross-referencing information with other donors, journalists, and U.S. government counterparts.
NED evaluates grants and programs on a regular basis, using tailored evaluation tools to assess programs, document results, and be sure grants actually make a difference. All grant recipients are vetted against federally maintained watchlists, including OFAC’s Specially Designated Nationals and Blocked Persons List, to ensure compliance with U.S. law.
NED works in the world’s most challenging environments. Its professional staff are fluent in over 65 languages and are knowledgeable about local democratic development and politics. Their expertise ensures pragmatic and accountable programming.
Transparency, Public Disclosure, and Duty of Care
Transparency is more than a procedural requirement at NED; it is a guiding principle that underscores the legitimacy and efficacy of its work. NED’s work is guided by four key objectives: accounting to the American people and their elected representatives; reporting to stakeholders on the use of public funds; coordinating among other democracy assistance organizations and governmental agencies; and amplifying the impact of NED’s work and that of its partners. Its relationship with oversight bodies, the information available on its website and in its annual reports (programmatic priorities, regional strategies, grants data, and grantee profiles) all demonstrate NED’s commitment to transparency.
Grantees are fully aware of the American source of NED funding. This is critical to maintaining trust and fostering partnerships rooted in shared democratic values. NED’s partners work in the world’s most repressive countries where authoritarian governments seek to repress core political and civil rights. In countries such as China, Iran, Russia, Cuba, Burma, Venezuela, or North Korea, the work of grantees exposes them to severe risks of harassment, imprisonment, and even death. NED carefully balances its transparency requirements with a duty to minimize the potential for harm to those working on the frontlines of the democratic struggle (known as NED’s “duty of care”). NED prioritizes the protection of grantees through careful consideration of how and when information is disclosed, withholding identifying details about grantees publicly when such disclosure may jeopardize their safety. This balanced approach enables NED to remain a trusted partner for democratic activists worldwide.
