Eligibility Criteria

The overview below regards the eligibility criteria for applicants. Please note that the fund is somewhat flexible regarding the application of these criteria, as our main issue is to engage with partners that have decent experience in operating projects and investing in activities that generate a decent number of jobs for young people.

Interested organisations, projects, and enterprises are invited to connect to CFYE. During a discussion, we will clarify if your project is eligible for funding or how it can be adapted to become more interesting for a partnership.

1. Principles: Should adhere to CFYE’s guiding principles & priorities.
2. Exclusion Criteria: The project and organizations involved in delivering the project must pass the FMO exclusion criteria.
3. Operational Criteria:

• The lead applicant, or at least one of the consortium partners, must have a local operating presence in the country or prove activities in the country in the past five years.
• Selected applicants must begin project activities for the CFYE co-funded initiative by October 2022.

4. Applicant Profile:

• We welcome partnerships or consortium responses to this challenge.
• We strongly invite applications from private sector companies, social enterprises, and NGOs. We believe that private sector involvement is the most effective way to develop and test market-based solutions that respond to the challenge of youth employment.
• Business accelerators and impact investors are also eligible.
• We strongly prefer to work with fast-growing small and medium-sized enterprises (SMEs).

5. Job type: Jobs should focus on wage employment or partial self-employment (working with agents).
6. Decency of Jobs: For any job created, matched, or improved, the average monthly income should be above the subsistence level, has no more than 48 hours per week of work, and preferably be maintained for at least six months.
7. Total Youth Job Targets: The project must meet the minimum eligibility criteria for job targets through a combination of CFYE categories: create, match, or improve. The minimum job targets are 50 jobs per project. Higher job targets showing cost-effectiveness will be regarded favourably during evaluation.
8. Women Targets: Of the total youth employment created, matched, or improved, at least33% are women. Higher women inclusion targets will be regarded favourably during the project evaluation phase.
9. Budget Guidelines: 

• The minimum contribution of the fund is €50,000. This should be matched by a co-investment that is at least equal to the requested contribution. Sources of co-funding must follow the guidance provided in the Concept Note guidance pack on the website.
• The contribution requested from CFYE is expected to be within a reasonable range compared to the lead organisation’s average annual turnover in previous years or the current year’s income in the case of a newly-established organisation. If the amount requested is significantly larger, CFYE requires an explanation of how the organisation/project intends to manage the funds and match it with its own contribution. Guidance around the proof of managing finances is provided in the Business Case guidance.
• There is no maximum grant amount stipulated, but we will consider whether the budget is realistic and whether the applicant can raise the required co-funding. We will also assess if the cost per job is competitive.
• The suggested range for cost per job to CFYE (Total CFYE co-investment / total # of jobs) is around €1,000.
• Projects with a higher budget than this range may be considered if there is a compelling and feasible developmental additionality (e.g., very high inclusion of women or high inclusion of youth in remote areas).
• Projects that demonstrate value for money and cost-effectiveness will be viewed favourably during evaluation.
• The company’s in-kind contributions must not exceed 30% of its total co-investment.
• Capital investment (CapEx) requests from CFYE must not exceed 33% of the total investment.

10. Youth: The jobs created, matched, or improved must be for youth aged 15-35 years. The proposal must demonstrate that the aspirations and requirements of youth have been taken into consideration in the design of the concept.
11. Additionality: Additionality is a central consideration in the review of proposed projects. CFYE co-financing must be additional to the proposed project, i.e., funding is channeled to bring about activities and further investments in youth employment, which would otherwise not occur (either at all, in the same timeframe, or to the same scale or quality). The provision of funding through a contract or grant agreement must not substitute or replace an organisation’s core funding or crowd out other funding sources.

Large enterprises are welcome to apply but must demonstrate the strong additionality of CFYE co-funding.

Competitive Process

The Challenge Fund for Youth Employment will apply a competitive process to select the projects that will receive a grant. That means that only those projects that present a clear and convincing pathway to employment, lead to significant and sustainable results in terms of decent employment for youth, with a focus on young women, and can demonstrate high leverage will be selected.