The publication is on the relationship between the Northern donor and Southern NGOs and their functions. This study, presented in four parts, focuses on the foundation for the study, the theory and literature relating to inter-organisational relations, the framework, concepts and methodology of the study. Part two addresses the first research question by analysing the respective institutional environment in which the donors and Southern NGOs function and analyses the background and history of the two types of organisations. Part three emphasises the dynamics of relationships and forces behind these relationships and the fourth and final part focuses on the relationship between Dutch CFAs and Sri Lankan NGOs thrive, stagnate and decline.