Some €36.5 million (£25m) was invested last year in more than 300 projects aimed at promoting reconciliation between nationalists and unionists in the North and stimulating economic development in areas either side of the border.
The International Fund for Ireland, which published its annual report today, helped fund business parks and other initiatives in several counties including Leitrim, Monaghan, Donegal, Sligo, Cavan, last year.
Projects in Northern Ireland helped attract jobs and investment in Northern Ireland targeted at the most deprived areas, outgoing IFI chairman Mr William McCarter said.
"The fund's work has had a concrete effect on the lives of thousands. The benefits range from a reduction in violence in flashpoint areas to encouraging investment in job creation in regions economically destitute for decades," said Mr McArthur who is retiring after 12 years in the job.
The Minister for Foreign Affairs, Mr Dermot Ahern, paid tribute Mr McCarter and his work in administering the fund. "There can be few communities anywhere in the Northern and border counties in which Willie McCarter's work is not known and appreciated," he said.
"As a TD representing a border constituency, I have seen, at first hand, the huge success of the International Fund for Ireland in improving the lives of everyday people" Mr Ahern added.
The European Commission along with the Australian, Canadian, New Zealand and US governments, contribute to the fund which was founded in 1986.