The purpose of this annual report is to develop an index of good humanitarian donorship that will measure donors'' effectiveness against their commitment to the Principles and Good Practise of Humanitarian Donorship. The index is intended to help the international donor community to better understand its strengths and weaknesses in order to improve the efficiency and quality of its donor activities and initiatives. The index is also expected to raise awareness about the increasingly important role of humanitarian action and associated good practices beyond its current core constituencies. We believe that this report offers significant potential to improve the quality of humanitarian aid, benefiting those most affected by both man-made and natural disasters.