United Nations Development Programme
GLOBAL ENVIRONMENT FACILITY Small Grants Programme
Resource Mobilization Strategy
Introduction 1. The Second Operational Phase of the UNDP-GEF Small Grants Programme (SGP) was approved by the GEF Executive Council in October 1998 following an independent evaluation carried out in the first semester of 1998. The evaluation stimulated in-depth discussions on ways and means to enhance the SGP’s capacity to achieve global environmental benefits in line with overall GEF objectives and criteria 1. As part of this process, the Council decided to adopt a programmatic approach in which further replenishments of the programme would be approved against meeting key milestones and deliverables. Benchmarks and deliverables were established for an initial period of three years (February 1999-February 2002) and a two-year replenishment of US$31.619 million was granted 2. An annual “rolling” financial modality was adopted to ensure continuity of programme activities. Further, the Council decided that the issue of incremental costs would be addressed strategically by the SGP at the programmatic level, both for country programmes and for the global programme. Given the nature of the SGP it was agreed that it would be unrealistic to require potential grantees to prepare a detailed incremental vs. baseline cost calculation for individual projects. Therefore, in order to meet the baseline costs involved in SGP activities the programme would match the GEF contribution with other sources of funding both in cash and in kind. It was broadly estimated that the baseline costs would be approximately 50% of the total costs of programme activities. The SGP is thus committed to mobilizing resources at the level of US$15 million in cash and US$15 million in kind during the first two years of the second operational phase. The respective benchmarks are included in Annex K2 of the SGP project document. The next replenishment of the SGP will be contingent upon meeting this co-financing target and subsequent replenishments will also require matching the GEF contribution with funds from other sources. To ensure the achievement of these co-financing goals, the deliverables for year 1 of the second operational phase (February 1999 – February 2000) include the preparation of a resource mobilization strategy to assist SGP country programmes and the Central Programme Management Team (CPMT) in raising funds 3 in a more systematic manner. As such, this document is intended to guide the global and country programmes in contributing to common fundraising goals. It should be noted that this strategy is a living document and will evolve as experience is gained in its implementation. The SGP has demonstrated over the course of the pilot and first operational phases that it can mobilize significant financial resources both in cash and in kind from a wide range of sources. This strategy builds on the experience gained and attempts to systematically present the approaches and steps to be taken to boost the existing resource mobilization potential.
See Report of the Second Independent Evaluation of the Global Environment Facility Small Grants Programme, June 8, 1998. 2 See SGP Project Document for the Second Operational Phase. 3 See Output 6 of SGP Project Document for the Second Operational Phase.
Objective 7. The principal objective of the SGP Resource Mobilization Strategy is to guide the programme in reaching current and future co-financing targets by creating a “culture and infrastructure” to attract, manage and allocate funding from non-GEF sources. The co-financing will complement GEF/SGP core resources as a means of achieving global environmental benefits through local action. Resource mobilization is a programmatic priority in the second operational phase and serves multiple short and long-term objectives: Maintaining SGP commitment to sustainable livelihood initiatives. The Independent Evaluation emphasized that incorporating the needs of local communities in SGP initiatives was an important incentive to mobilize these communities to address global environmental problems. Additional resources will be mobilized to fund those activities that meet community development needs associated with SGP projects but would normally be ineligible for GEF funding. Considering “baseline” community needs while at the same time adhering to the GEF incremental cost criteria at the programmatic level is therefore an important objective of the Resource Mobilization Strategy. Enhancing programme and project sustainability. Mobilizing local and national resources will increase the sense of community and national ownership of the SGP and will facilitate sustainability of projects initiated with SGP grants and of the programme as a whole. Promoting new partnerships. The need to mobilize new resources will encourage SGP National Coordinators, members of the National Steering Committees and grantees to establish partnerships with, among others, local governments, civil society organizations, the private sector and the scientific community to reach project and programme goals. Achieving synergy and complementarity with other programmes and projects at the national, regional and global levels. The SGP has demonstrated that it can effectively enable local communities to access international and national funds. Building on its decentralized and transparent operating structure, the SGP is strategically placed to provide services to other donors with similar missions but who lack the institutional means to reach local communities and organizations. Obtaining and executing national funds for SGP activities will also promote synergies with government and private sector initiatives related to the goals of the SGP. Up-scaling and replicating successful SGP funded projects. SGP has several years of experience in testing innovative ideas and technologies at the local level to address global environmental problems. Resource mobilization will allow country programmes to replicate and expand successful interventions and also to involve other communities and organizations. Leveraging financial resources to increase global environmental benefits. In accordance with the GEF mandate, additional national (both private and public), bilateral and multilateral resources will be raised to enhance the scope of actions to address global environmental problems.
Strategic Considerations The SGP has been acknowledged by country-level and global partners alike as a successful initiative that has demonstrated its effectiveness in meeting community development needs while at the same time addressing global environmental problems. As such, it has the potential to attract substantial co-financing from a diversity of sources. SGP capacities to mobilize resources need to be gradually developed at all levels: projects/communities, country and global. Capacity building for resource mobilization is therefore an important component of this strategy.
Specific global and country budget allocations are required to organize and implement successful resource mobilization initiatives. It is therefore expected that the GEF project budget will include an allocation for this purpose. The necessary emphasis on resource mobilization should not lead to a loss of focus, purpose or approach, or alter the SGP’s proven operating procedures and mechanisms. Rather resource mobilization should be seen as a cross-cutting activity that can complement, for example, SGP community-level grant-making and technical assistance, mainstreaming and communications activities. Strong and effective communications are important elements to facilitate resource mobilization. The SGP Communications Strategy will devote attention to this matter to assist country programmes and the CPMT in communicating appropriate messages and using the most effective channels. Particular attention should be given to acknowledge the contributions of co-financing organizations in SGP communications materials such as reports, brochures, and electronic and audiovisual productions. Effective and efficient use of funds raised is necessary to maintain and attract donors. Reporting in the appropriate formats and agreed timeframes should be a priority concern at all programme levels. Reports are also an important means of communicating project achievements. Every effort should be made to charge for administrative costs associated with managing resources from donors. Resource mobilization efforts should target traditional and innovative funding sources including: bilateral and multilateral organizations within and outside the UN system; international and national charitable foundations and NGOs; national environmental funds; national and local governments; and the multinational and national private sector. Efforts should also be made to secure UNDP TRAC resources for SGP activities and projects. In-kind contributions, particularly in the form of technical assistance should be targeted at the country programme level. Contributions by NGOs, government agencies, researchers, NSC members and volunteers should be valued and recorded. At the community level, in kind contributions should be assessed and assigned a monetary value at the project development stage. All CPs are expected to be able to report on in kind contributions assigning a value in US$ dollars.
Responsibilities and Priority Actions 9. The Central Programme Management Team in New York (CPMT), the Country Programmes (CP) with the support of UNOPS and the UNDP Country Offices (CO), and the grant recipients share responsibility for meeting the co-financing targets of the second operational phase. The resource mobilization effort should be seen as an integral component of the programme and as a fundamental tool to meet SGP objectives.
Global Level 10. The Central Programme Management Team has the following main responsibilities: Mobilize financial resources for the global programme and for multi-country activities; an appropriate balance in the allocation of resources across country programmes will be sought over time. Monitor global and multi-country activities and projects and report to donors. Support and monitor the development and implementation of Country Programme resource mobilization strategies. This includes technical assistance, information, capacity building, establishing contacts with potential donors, development of relevant communication materials and facilitating experience exchange. Keep a global record of resources mobilized to ensure timely and accurate reporting to the GEF and other donors. Identify the most appropriate administrative and financial procedures to facilitate management of co-financing resources and build the capacity of country programmes to apply these procedures.
11. The United Nations Office for Project Services (UNOPS) will support resource mobilization efforts at the global and country programme levels by providing guidance on financial and administrative matters related to the management of non-GEF resources. This includes advice to the CPMT, National Coordinators (NCs) and COs on the application of relevant financial rules and regulations. UNOPS will also provide support services to projects and activities under UNOPS’ execution4 and will prepare the respective financial reports to donors. 12. The following actions have been identified to promote in-country resource mobilization activities by the CPMT: Promoting and facilitating exchange of experience on resource mobilization. The CPMT and the NCs should disseminate resource mobilization approaches and tactics, especially through the SGP-xchange. In addition, the SGP communications strategy will provide relevant advice, for example, about analyzing and sharing best practices on in-country resource mobilization. Capacity building. Identification of needs and partners/institutions that could provide training in fundraising techniques. Coordination with other programmes. Establishing and maintaining contacts with donor programmes and projects. Liaising with bilateral agencies in order to promote SGP, including making available examples of successful co-funded activities in certain countries with a view to expand these agencies’ support to other SGP participating countries. Ensuring adequate administrative procedures for contributions management. For this purpose all relevant UNDP resource mobilization regulations and guidelines will be made available to National Coordinators. Also UNOPS will provide on-going assistance to meet special donor requirements. Developing communications tools to facilitate SGP country presentations to donors. The SGP module prepared for the GEF Country Dialogue Workshops is available in the SGP-xchange. Other materials will be developed as per the recommendations of the SGP Communications Strategy currently in preparation. Facilitating access to relevant information. This includes identifying potential donors, their requirements, and the process for accessing their resources. A database of potential donors will be developed and made available to NCs.
Country Level 10. In-country efforts to mobilize financial resources will be undertaken at two levels, country programme and project: (a) Fundraising to increase country programme’s overall financial resources for grant-making, capacity-building, lessons learning, exchange of experiences, and communications and outreach. This includes in kind contributions. (b) Obtaining co-financing, both parallel and cost-sharing, for specific NGO/CBO projects. Project co-financing activities also involve encouraging grantee in-cash and in-kind contributions. 11. Although the primary fundraising responsibility at country level lies with the NCs, their efforts should be supported by the National Steering Committee and the UNDP CO. As pointed out above, the CPMT will also support the national efforts. 12. Fund raising at country level should be guided by a national Resource Mobilization Strategy in line with the global RMS and the Country Programme Strategy (CPS). The national RMS should ideally establish a target co-financing figure to be reached within a specific time-frame. The co-financing target should at least match the GEF contribution to the SGP country programme. 13. The national communications strategies should be revised to include resource mobilization issues and actions if these are not addressed in the current strategies.
For a complete description of UNOPS project execution services please see the SGP Operational Guidelines.
14. NCs should keep track of non-GEF resources obtained and maintain regularly the SGP database. A tracking system for in kind resources should also be developed in order to account for in kind contributions made to the country programme or to individual projects. 15. Areas that should be further explored include: Identification of potential donors engaged in supporting community-based development issues in addition to those that make contributions to environmental initiatives. This is particularly important given that one primary objective is to cover baseline costs of communities’ development needs associated with SGP projects. Bilateral contributions usually represent an important potential source of co-financing at the country level. Of significant potential for the SGP is the discretional funding made available by certain donor countries to their Ambassadors for small grants to grassroots organizations. Since the embassies may lack the capacity to identify, screen and monitor projects, they often welcome the quality and accountability of the SGP mechanism. Contacts should be made with the various Embassies. National Environmental Funds (NEFs) have been established in a large number of countries. These funds also contribute funding for NGOs and grassroots organizations and often share one or more of the SGP programmatic objectives. Partnerships with environmental funds should be strengthened. Establishing a national foundation or other appropriate legal entity may be an interesting way to receive and manage funds from private and public contributions. Such structures may evolve into national environmental funds that could ensure sustainability of SGP activities, particularly as country programmes mature and “graduate” from the GEF/SGP. Some capital venture funds for environmental commercially-viable activities have been recently established. The SGP may assist interested grantees in project preparation and submission. SGP planning grants could be explored as a mechanism to provide technical assistance to NGOs and CBOs in preparing business plans for accessing capital venture funds. The SGP may reach out to the national and international private sector. Commercially viable activities such as ecotourism may be an interesting way of attracting private sector contributions to SGP related projects. Building on the experience of some country programmes, the possibility of inviting donors to participate in the SGP National Steering Committee should be explored. The participation of NCs in other project selection committees is also encouraged. Promotional meetings with groups of donors and project site visits should be planned and carried out on a regular basis. The UNDP CO can help in organizing these meetings and also facilitate contacts with donors. Local governments may be a good source of project-level co-financing in some countries. Involvement of local governments in SGP projects may also have a positive impact in terms of sustainability, scaling-up and/or replication.