Funding Strategy and

Action Plan

Jürgen CarlsUniversity for PeaceP.O. Box: 138 – 6100San José, Costa Rica

E-mail: jcarls@upeace.orgTel.: (00506) 205 90 75

San José, Costa Rica

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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.

Funding Strategy

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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

Funding Strategy

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The funding sources are presented in three lists of categories:

• Bilateral Agencies

• Private Foundations, Companies, Banks, Philanthropic Societies

• Multilateral Programs

Funding Strategy

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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.

Funding Strategy

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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.

Funding Strategy

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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.

Action Plan

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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.

Action Plan

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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.

Action Plan

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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.

Action Plan

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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.

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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.

Funding Concept

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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.

Funding Concept