The DAAD and its programmes are largely financed through public funding bodies. 

The German Academic Exchange Service (DAAD) is the world’s largest funding organisation dedicated to promoting the international exchange of students and researchers. Its operating budget in 2023 totalled 839,3 million euros. Its main funding bodies include the Federal Foreign Office – AA (26,1%), the Federal Ministry of Education and Research – BMBF (23,8%), the Federal Ministry for Economic Cooperation and Development – BMZ (6,6%) and the European Commission  and other international organisations European Union – EU (40,2%).