There are three types of Fund Management: Parallel, Pooled, and Pass-Through.
These options can also be combined.
Parallel Fund Management:
This fund management option is likely to be the most effective and efficient when interventions by participating UN organizations are working towards common results, but with different national, sub-national and/or international partners. Under this option, each organization manages its own funds
A good example of a possible programme for parallel fund management would be where several agencies are supporting disaster recovery in a particular province but with separate ministries and focal points. The parallel fund management modality might be more suitable when working with sub-national partners if local capacities are limited or the partner’s functions are narrowly defined.
Pooled Fund Management:
This fund management option is likely to be the most effective and efficient when participating UN organizations work for common results with a common national or sub-national partner (e.g. Department, provincial office, NGO) and/or in a common geographical area.
Pass-Through Fund Management:
This option can be used when two or more UN organizations have developed with partners a joint programme which is to be fully or partly funded by donors, and the donor(s) and participating UN organizations jointly agree to channel the funds through one UN organization