The Somalia Humanitarian Fund (SHF) supports activities and projects that have been prioritized as the most urgent and strategic to address acute unmet emergency and humanitarian needs and to respond to emerging needs. It also funds interventions to fill the highest priority gaps, for example, projects targeting people with disabilities or projects addressing the needs of affected children. Projects must be aligned with sector priorities outlined in Humanitarian Response Plans (HRP) and Flash Appeals, the operating principles included in the SHF Annual Strategy and the specific allocation strategy papers.  

Once a new emergency hits the country or critical gaps in the core humanitarian response need to be addressed, the SHF will undertake a consultation and analysis process to elaborate an allocation strategy paper for a call for proposals. The allocation strategy paper is developed in collaboration with partners, clusters/sectors, the SHF Advisory Board and the Humanitarian Coordinator (HC) in close consultation with the Humanitarian Country Team (HCT). Project proposals are prioritized and vetted within clusters/sectors through the Strategic Review Committee (SRC) and then recommended to the SHF Advisory Board for comments and final approval by the HC. SHF funds are channeled through partners (national, international NGOs, and the UN) that are best-placed to deliver prioritized activities in accordance with the agreed strategy and humanitarian principles in a timely and effective manner.  

Specifically, the SHF has two allocation modalities:  

1. Standard allocation: this is the main mechanism for SHF allocations and the process through which the majority of funding is channeled to priority activities within the Humanitarian Response Plan (HRP). Large and medium-size strategic allocation rounds are typically launched once or twice a year, depending on the availability of funds. The basis for project submissions is the Standard Allocation Strategy, developed by the Inter-Cluster Coordination Group (ICCG), in close consultation with regional counterparts (Regional ICCGs). Allocation strategy is then approved by the Humanitarian Coordinator (HC) and endorsed by the SHF Advisory Board.
2. Reserve allocation: this modality is primarily intended for the rapid and flexible allocation of funds for unexpected emergencies, to address emerging humanitarian needs or rapidly deteriorating situations. These funds can be allocated through individual reserve allocation or broader allocation rounds and accommodate disbursement of resources is response to specific humanitarian situations requiring a coordinated response outside the standard rounds.