Fundraising

Basic Training on Conservation Trust FundsCape Town, South Africa March 31 – April 2, 2009

CTF Sources of Funding• Bilateral and Multilateral Donors

– endowment and sinking – debt swaps

• Private Donations– Foundations – mostly project– NGOs – start-up and endowment– “major donors” – largely untapped

• Private companies– corporate foundations– marketing campaigns– biodiversity offsets

• Payment for Ecosystem Services– tourism, water, etc.– often revolving

Trends: Diversification of Funding Sources – Private Sector?

Payment for Watershed Services

Water Fund (Guatemala, Ecuador)

Voluntary Carbon Offset

Tany Meva Biocarbon Fund

Biodiversity Offsets

Ecofondo (FAN-Ecuador)

Private Donations

Peace Parks Foundation – Club 21, Dutch Postcode Lottery

Dutch Postcode Lottery Donation

Forever Costa Rica• Goal: Costa Rica is 1st

country to meet CBD protected areas goal

• $50M endowment target

• Single closing, project partnership investment approach based on strategic plan

•Private foundation operating as non-profit investment bank for environment

•Provides structuring, resources and execution

What does Success Look Like?EFs which attract additional $

• Demonstrate shared principles with donors.• Demonstrate host-country government support.• Offer attractive governance & management structure • Develop a remarkable track record (brand)• Avoid being identified too much with a particular donor• Offer economies of scale or value-added• Offer incentives (e.g. subsidized admin costs)• Offer a compelling strategy• Work in areas of particularly high biodiversity value

Scott Lampman, USAID, 2007

Professional fundraisers are no substitute for dynamic leadership

Board members and CEOs need to develop long-term relationships with donors

Rosenzweig, Moye, Paniagua – RedLAC 2007

Typical Donor Conditions for CTFs

• Earmarked funds• Matching funds• Approval of key governance documents• No objection to Board, asset manager• Provision for return of funds in case of

dissolution• Reporting and evaluation

Why a Fundraising Strategy?

• Establish 5 year goal with annual targets to increase and diversify funding

• Coordinate fundraising efforts• Stand out in a competitive environment• Build long-term partnerships • Tell a compelling story

Fundraising Steps• Define the fundraising vision• Perform financial gap analysis: capital needs• Assess existing institutional capacity for fundraising• Identify potential sources of funding (research

donors) and match them to needs• Develop targeted marketing materials and

proposals• Implement fundraising strategy through Board,

staff, professional fundraisers• Monitor, evaluate and modify

Fundraising Questions?

• How can you convince a donor to invest in your fund instead of financing projects?

• What factors should be taken in to account when calculating the minimum capital for a fund?

• What compelling story do African funds have to tell to raise funds?