Transcript WELCOME TO THE COURSE ON FUNDRAISING FOR RURAL …

COURSE ON
FUNDRAISING
Jürgen Carls
University for Peace
P.O. Box: 138 – 6100
San José, Costa Rica
E-mail: [email protected]
Tel.: (00506) 205 90 92
San José,
Costa Rica
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THE DECREASE IN DIRECT
GOVERNMENT FUNDING

Direct government donations to national organizations have been
reduced in favour of indirect donations, competitive donation
programs and donations to development programmes

This tendency is often called “privatization of the public sector”

This prevails in some of the industrialized countries, such as The
United Kingdom, The Netherlands, New Zealand and Australia

Little by little this tendency is spreading to other OECD and
developing countries
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THE NATIONAL BUDGET IS THE
BASIS
 External
sources can never replace basic
funds of the national treasure
 With
regard to the national treasure
institutions need to
promote the institution’s reputation at national level
 pay attention to the preparation of the annual
budget, and
 Maintain good personal relationships

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TYPES OF DONORS
National donors with public funds
 Bilateral donors
 Multilateral donors
 Donors with private funds

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A BILATERAL DONOR

Uses public funds to finance a development programme
of another country; usually from government to
government, but nowadays many bilateral donors also
fund NGOs

The majority of bilateral donors are governments of
industrialized countries:
f.e.: ACIAR - Australian Center for International Research
DCA - Development Cooperation Agency (Belgium)
DANIDA – Danish International Development Agency
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A MULTILATERAL DONOR


Is a donor agency receiving funds from member
countries
The funds come from contributions from each
member country
f.e.:
ADB – African Development Bank
AFESC- Arabic Fund for Economic and Social
Development
ADB – Asian Development Bank
EC – European Commission
IDB –Interamerican Development Bank
WB – World Bank
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THE UNITED NATIONS
ORGANIZATIONS
Have restricted budgets and make fewer
donations than in the past
 Carry out research, training and
development activities

e.g.: FAO – Food and Agriculture Organization
UNEP- United Nations Environment Program
UNDP– United Nations Development Program
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PRIVATE FUNDING SOURCES

Those are foundations of societies
financed with the profits of commercial
companies or by a donation made by a
rich individual or a group of individuals
f.e.:
Ford Foundation
Rockefeller Foundation
McArthur Foundation
Toyota Foundation
Packard Foundation
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CGIAR – CONSULTATIVE GROUP
ON INTERNATIONAL
AGRICULTURAL RESEARCH
Is not a donor agency
 Composed of a group of donor members
(50) who finance 16 international centers:

e.g.:
CIAT
IITA
IFPRI
CIMMYT
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FUNDING TYPES
Loans
 Donations:


basic or non-restricted donations
 restricted, or donations for special projects
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LOANS
Are financial contributions that have to be
payed back
 Loans are often “bland” – the interest rate
is by far lower than the rate of commercial
loans
 Often, a respite is given before
amortization takes place

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DONATIONS

Are financial contributions that need NOT
to be payed back

It is expected that these donations have
an impact on specific development
projects
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BASIC OR NON-RESTRICTED
DONATIONS (CORE FUNDING)

The beneficiaries (donor receivers) can
dispose of the funds for any kind of
research or development programme

The beneficiaries can also use the basic
donations for acquiring equipment, pay
salaries or cover administration costs
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RESTRICTED DONATIONS OR
DONATIONS FOR SPECIAL PROJECTS

These financial contributions have to be
used for specific activities

The donation agreement is based on a
convincing project proposal
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CALL FOR TENDERS




Donors publish a call for proposals to carry out
the project
Competitive funding of development
programmes/projects
Are frequently made for the investment or
development of a project
(road construction, electrical energy plants,
dams)
Growing importance for rural development
projects
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COMPETITIVE DONOR
PROGRAMS



The donors like to chose from different
proposals
The donor can specify a determined subject
(“natural resources development”, “crop
improvement”) or a specific geographic area
The donor establishes guidelines, for example
with regard to the size of the donation and the
prefered length of the project
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DONORS ARE INVESTORS



The word “donor” means “giving away”.
Nowadays, people prefer the word “investor”.
The word “investor” conveys the impression that
the cooperation agency is making a business
decision to assign funds for a programme
An investor, by definition, awaits to obtain results
of his investment
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DO YOU KNOW YOUR DONORS?



Donors have many options when it comes to
considering on how to assign their donations
You need to know as much as possible about
the donor agency, including its personnel, its
objectives, its interests, its policies and its
budget
You obtain the information from internet and by
personal interaction. Through this interaction you
learn about the donor and the donor learns
about you
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