The role of the state in the development of civil society organizations and its actions in support of their financial sustainability is the main topic of research in the article. The article analyses the state of affair in the area of the state direct funding of CSOs in the Republic of Moldova, in the form of grants for projects and subsidies. The study is integrating the information provided by central and local public authorities, civil society organizations, as well as the processed data from the legal framework analysis regarding the funding provided by central and local public administration authorities, and the analysis of the state budget. It includes also an analysis of the financing practices from the state budget for CSOs, identification of the weaknesses of the direct financing mechanism applied in Moldova and suggestions regarding its improvement.