Comparative study of municipalities’ participation in grant programmes: challenges, dynamics and strategic decisions.
The decentralisation reform, introduced in 2014, has given local authorities broader powers and opportunities to develop their territories. In the context of Ukraine’s ongoing transformation, the effective use of these opportunities depends on adequate financial, human and institutional resources at the local level.
It is particularly relevant to cooperate with international donors who can provide important financial and technical support. To assess the effectiveness of municipalities in adapting to these challenges, BDO in Ukraine conducted a repeated survey having compared the results of 2024 and 2025.
Objectives and methodology of the survey
BDO in Ukraine’s survey aimed to assess the level of involvement of Ukrainian municipalities in cooperation with international partners in the recovery and sustainable development. Furthermore, a key objective was to ascertain their pressing needs and challenges. To collect data an online survey was used, with representatives of major municipalities participating.In 2025, 290 communities from 22 regions of Ukraine participated in the survey.
Key findings of the 2025 survey
The 2025 survey findings indicate that while most municipalities are engaged in various grant programmes, there is a prevalent lack of knowledge and resources.
- 28.7% of Ukrainian municipalities from all regions of the country (except Donetsk and Luhansk regions) participated in our survey.
- 94.5% of respondents expressed a need for additional training on working with grant programmes.
- 77.4% of municipalities have experience of participating in grant competitions.
- Most respondents acknowledge that they lack qualified experts to work effectively with grants.
Does your organisation have experience in participating in grant competitions? Option “YES” by region, %
Dynamics of change and key trends (2024–2025)
To gain a deeper understanding of the changes in municipalities, BDO in Ukraine conducted a detailed analysis of data obtained from 74 municipalities that participated in surveys in 2024 and 2025. This approach enables not only to state facts, but also to track the dynamics of municipalities capacity building over the past year and identify key trends shaping their cooperation with partners.
- Experience in working with grants. The overall level of experience in participating in grant competitions has declined slightly, which can be explained by reduced activity in small municipalities. However, in larger municipalities (those with over 100,000 residents), this figure has increased to 100%, indicating a concentration of experience and resources.
- Training needs: Training needs remain consistently high. Traditional requests for courses on grant writing, fundraising and business English have been joined by new topics, including the use of artificial intelligence in project preparation and the basics of project management.
- Involvement of third-party organisations: An increasing number of municipalities are opting to engage the services of external consultants to prepare project documentation. While only one municipality did so in 2024, five did so in 2025, which may indicate growing demand for specialised consulting services.
- Challenges: As in the previous year, the main challenge for most municipalities is finding potential donors and investors. However, in 2025, respondents became more precise in identifying problems: the percentage of responses marked “All of the above” decreased by almost 5%, which may indicate a better understanding of their own needs.
- Staff structure: A positive trend has been observed: the proportion of project managers and department experts in the surveyed municipalities has increased, while the proportion of municipality leaders who completed the questionnaires has decreased.
Municipalities that participated in the survey again in 2024 and 2025 by region, %
Conclusions and recommendations
A comparative analysis of BDO in Ukraine’s research results for 2024 and 2025 confirms that Ukrainian municipalities play an integral role in recovery and sustainable development processes. The data collected indicates positive developments in municipality capacity, with municipalities not only participating actively in grant programmes but also exhibiting an increase in professional standards. The increase in the proportion of project managers and experts, as well as the transition to a more accurate identification of challenges, are clear evidence of this progress. However, despite these achievements, significant challenges remain that require systemic solutions.
Based on the data obtained, BDO in Ukraine proposes the following strategic directions for municipality capacity building:
- Establishment of a unified information ecosystem. Create a centralised information resource containing an up-to-date database of international donors, their requirements and selection criteria, which will greatly simplify the search for project funding opportunities for municipalities.
- Institutionalisation of professional development. Introduce ongoing training programmes for local specialists focused on acquiring practical skills in project management, grant application development and the use of modern digital tools, including AI.
- Introduction of mentoring and interaction mechanisms. Create platforms for direct exchange of experience between successful and less experienced municipalities and organise regular meetings with representatives of international foundations and organisations to establish direct contacts.
- Strengthening of the role of local consultants and non-governmental organisations. Promote the development of a market for professional consulting services at the local level, which will enable municipalities to more effectively engage external expertise to prepare high-quality project proposals, as larger municipalities are already doing.
BDO in Ukraine works systematically on capacity building of municipalities in sustainable development. Combining local context with international expertise allows us to develop solutions that meet European and global standards. Our methodologies are founded on a comprehensive analysis of the authentic requirements of municipalities, enabling us to customise support solutions — ranging from training programmes to consulting services — to the distinct characteristics of each territorial entity.
