The Council (LWR)
In General
You receive funding from all council nations at the start of the game, regardless of whether you have satellite coverage or not. Their funding will increase if you give them satellite coverage. If a council nation receives too much panic it may leave the XCOM project and will cease funding you.
If all council nations leave the XCOM project the campaign will end.
Countries also occasionally make requests that, when filled, strenghten their defences in addition to offering immediate rewards.
Missions
Every month the council will have a special mission for XCOM. These can vary and are explained more in detail here: Council Missions
Monthly Grade
At the end of each month the council assigns a grade. This grade has no effect on the game but is a relative reflection of how a player is doing versus another campaign that will eventually pass the game.
Grades start out at C and, depending upon XCOM's success, can move up to A+ and down to F.
A grade of A+ means the player is likely to pass the campaign and is doing quite well. Conversely, a grade of F means the player is unlikely to pass the campaign and is doing quite poorly.
Bonus Soldiers
At the beginning of each month the council will hire new soldiers for XCOM (depending on difficulty) that take 18 days to arrive.
Requests
Every few days the council will offer a trade. They will ask for some resource in exchange for another resource.
Fulfilling these requests will grant the council country extra defense (seen as an empty shield filling up).
Country defense has the following effects:
More likely to send interceptors to help engage UFOs More generous rewards for council requests Resistance to panic