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Funding Strategy and Action Plan by iqm86975

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									Funding Strategy
      and
  Action Plan
          Jürgen Carls
      University for Peace
      P.O. Box: 138 – 6100
     San José, Costa Rica
   E-mail: jcarls@upeace.org
     Tel.: (00506) 205 90 75
            San José,
            Costa Rica
Funding Strategy

 Summarizing Internet information
  with respect to potential funding
  opportunities for Development Projects
  was analyzed based on specific
  criteria.
 “International Foundation Directory
  (2003)” and expert opinions were
  considered. Altogether roughly 10.000
  sources – from Europe, Asia, Africa,
  United States, and Latin America were
  taken into account.
                                           2
 Funding Strategy

The lists of potential funding
sources are not exhaustive, but
present a base with the idea to
mobilize funds for development
projects. Also grants for research
projects have been considered




                                     3
 Funding Strategy

The funding sources are presented
in three lists of categories:
• Bilateral Agencies
• Private Foundations, Companies,
  Banks, Philanthropic Societies
• Multilateral Programs




                                    4
           Funding Strategy
         Concluding, there is a range of possibilities to
         mobilize funds for rural development projects:

 Bilateral Agencies offer support when specific donor
  requirements are met.
 Multilateral Organizations offering support, such as
  The World Bank, The Interamerican Development
  Bank, The European Commission, UNESCO and
  others, but funds have been diminished during the last
  years.
 Private Foundations and Philanthropic societies
  are of particular interest to receive support for
  development projects.

                                                            5
 Funding Strategy

 Companies and Commercial Banks
  are potential funding sources as well.
  For example:
     Coca Cola Scholarship Foundation
     Chevron Texaco Foundation
     Bank of America Foundation
     The Hitachi Foundation.
 Political National Foundations are
  concentrating mainly on ad-hoc
  measures against terrorism in conflict
  regions. Applications for support
  should be launched in that direction.
                                           6
Action Plan

1. Potential funding sources
   should be identified according to
   the needs and priorities of the
   institution looking for funds.
2. Before establishing a contact with
   the potential funding organization
   a deeper study about the donor’s
   interest and specific
   requirements should be carried
   out.
                                    7
Action Plan
3. Many of the potential donors
   request a short concept note or a
   brief letter of inquiry, prior to any
   formal application process.
4. Based on the feedback of the
   potential funding source a
   (personal) contact should be
   established by presenting the
   institution asking for money and
   the objectives of the project.
                                       8
Action Plan
5. On the basis of this “personal
   assessment” an application campaign
   should be launched, sending a
   “Concept Note” to potential donors.
6. In the meantime, a project proposal
   will be developed and send to
   potential donors.
7. A constant monitoring and evaluation
   process about the application
   launched increases the chances to
   mobilize funds.
                                          9
 Action Plan

8. Given that donors often prefer to share
   participation in major projects with
   other donors, each focusing upon their
   respective priorities while “sharing
   risks”, some natural matching will likely
   occur.
   Priority categories of high chances to
   receive funds could be established,
   with indications to get an “anchor
   funding or core funding” and others
   with complementary funds.

                                           10
Funding Concept
A funding concept cannot easily be set-up at
once. Instead, a stepwise plan should be
persued in which the sequence of steps would
follow certain principles with regard to a gradual
build-up in size and complexity of the concept.

Step 1: At the beginning an association is
required, which has as its purpose the creation of
a foundation for development. Associates will be
people, who support the concept. For effectivity
in decision making, the group should be
composed of a few highly determined
personalities. The association would be
registered as a foundation with philanthropic
objectives.

                                                     11
 Funding Concept

Step 2: Donors are identified as
members of the association. Their
donations would be used to set up a
funding arrangement.

Step 3: Meanwhile first projects are
supported in order to show to investors
and donors that the foundation is
capable of supporting relevant
development activities. Competitive pre-
selection of projects to be funded would
be useful.
                                           12
 Funding Concept

Step 4: Once the foundation is set up and
projects are supported new clients are attracted
to support the foundation.

Step 5: If the funding arrangement for
development attracts enough investors an
endowment fund is set up. Investment in this
fund would also engage ethically appealing
investments related to development.

Step 6: The endowment fund is managed by a
well known bank, only the interests of the
capital accumulated is used for supporting
projects on a competetive basis.
                                               13

								
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