This document explains challenge funds and the Enterprise Challenge Fund pilot program, where a challenge fund may be appropriate to drive sustainable economic development, risks to be managed if DFAT teams decide a challenge fund is appropriate, the considerable work that should occur to design and implement an effective challenge fund, and useful resources for additional information (this document is intended as an effective summary and not an exhaustive source of programming advice).

2014 DFAT Policy Note for Effective Challenge Funds (PDF 193kb)
2014 DFAT Policy Note for Effective Challenge Funds (Word 156kb)