In this report, the findings from the evaluation of the Democracy Funds are presented. This financial support mechanism is administered and managed by The Norwegian Children and Youth Council (LNU by its Norwegian acronym) and financed by the Norwegian Ministry of Foreign Affairs. Democracy Funds seeks to strengthen the role played by children and youth organisations in Eastern Europe and the Caucasus in building up sustainable civil societies, and supports co-operation between Norwegian children and youth organisations and their partner organisations in the recipient countries. The support mechanism’s achievements have been evaluated, as well as LNU’s management of the support mechanism. The evaluation period has been 2000-2007. The main empirical source is interviews with participants on both sides in ten selected projects, as well as interviews with representatives from LNU and the Norwegian Ministry of Foreign Affairs. Other sources of information have been project documents, guidelines and questionnaires. After examining and evaluating LNU’s management of the Democracy Funds and the extent to which the selected projects have contributed to meeting the objectives of the support mechanism, the report concludes with recommendations and a discussion of the potential for the future development of the Democracy Funds.