Multilateral institutions are an important channel for DAC member countries’ ODA. In the eyes of many countries and, in particular, the smaller donors, multilateral organisations offer the advantage of being able to mobilise significant volumes of resources and to broaden development objectives. They also help co-ordinate donor responses to global development issues. However, to improve the coherence of the overall aid system, strategic and operational links between the bilateral and multilateral sectors need to be strengthened. Global funds are distinct from multilateral institutions but, nevertheless, offer another way for DAC member countries to address development challenges at a regional or global level. While global funds have some strengths, aid managers need to consider their accountability, the extent to which they duplicate existing structures and the extent to which they take a partnership approach.