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UNDG Toolkit UNDG Toolkit Document Transcript

  • Guidance note: Joint Resource Mobilization [“Resource Mobilization is the ability of the UN System to acquire resources and to mobilize people towards the furtherance of the goal of supporting national governments to achieve the MDGs”] September 2008
  • Table of Contents Background Joint Resource Mobilization...........................................................................4 Step 2: Visioning...............................................................................................................6 Step 3: Develop strategic framework.................................................................................7 1.1 Resource mobilization strategy.........................................................................................7 1.2 Approach for the development a Resource Mobilization strategy......................................9 1.2.1 Analyze the resource gap.......................................................................................10 1.2.2 Analyze external environment................................................................................11 1.2.3 Match potential donors to unfunded outcomes in the UN Business Plan................12 1.2.4 Prioritize potential partners.....................................................................................14 1.2.5 Develop Resource Mobilization strategy document................................................14 1.3 Underlying principles of the resource mobilization strategy.............................................15 1.3.1 Principles of a joint resource mobilization strategy.................................................16 1.3.2 Good Practices for developing your joint resource mobilization .............................17 Step 4: Identify Change Requirement: Design Fund management mechanisms.............19 1.4 Parallel funding mechanism............................................................................................19 1.5 Pooled funding mechanisms...........................................................................................20 1.6 Pass through funding mechanism...................................................................................21 Step 5: Develop work plan for implementation................................................................23 1.7 Resource Mobilization Plan.............................................................................................23 1.7.1 Develop resource mobilization plan .......................................................................23 1.7.2 Engaging potential partners....................................................................................24 1.8 Managing the donor relations..........................................................................................24 1.8.1 Fostering trust between the UN System and your partners through fulfillment of obligations ......................................................................................................................25 1.8.2 A win-win approach to ongoing management of donor relations............................25 1.8.3 Anticipating long term donor needs........................................................................27 iii
  • Background Joint Resource Mobilization In the previous steps you have been able to develop your vision on UN Coherence (step 2) and a strategic framework outlining the high level outcomes for UN Coherence (step 3). The results are captured in the UN Business Plan that provides the strategic roadmap for the UNs programmes and Business Operations in the coming five years. However, before you can start implementation you need to ensure sufficient resources are available to cover the expenditures required to implement the activities in the UN Business Plan. In many cases the contributions available to the UN System at country level are insufficient to provide resources for all the activities in the work plan, leaving you with two options: either reduce the number of activities, or engage in resource mobilization activities to raise the level of available resources to cover this resource gap. The extent to which you need to mobilize additional resources depends on the resource gap. The resource gap is the difference between the required resources (as identified by the UN Business Plan) and the available resources, including regular and extra-budgetary resources. This guidance note will support you in preparing a joint resource mobilization strategy and will provide guidance with regards to the funding mechanism, the management mechanism through which the additional resources mobilized will be disbursed in accordance with the results articulated in the results matrices of the UN Business Plan (both the UNDAF results matrices and the Business Operations results matrices). It will help you to develop and present a convincing business case to establish partnerships that will help you mobilize resources to ensure adequate support covering all activities articulated in the UN Business Plan. The guidance note aimed at supporting a joint resource mobilization effort, whereas the UN agencies work together to mobilize resources on behalf of their common strategic framework, the UN Business Plan, rather than each agency mobilizing resources on their own behalf. If developed and implemented properly, this joint resource mobilization should lead to a drastic reduction in transaction costs for both partner and UN; Using the input from the stakeholder analysis, stakeholders are mobilized in support of an integrated UN strategy rather than individual agencies strategies, significantly reducing the parallel resource mobilization efforts and competition for resources and increasing the ability for the UN as a system to coordinate and align its efforts and the resource allocation to these efforts. Further reduction in transaction costs can be realized through integrated reporting by the UN System to donors on expenditures (ref existing guidelines “Explanatory Note on Harmonized Financial Reporting to Donors in Joint Programmes”). The different activities supporting the development of the Joint Resource Mobilization Strategy and various mechanisms for management of funds, including Multi-Donor Trust Funds are tied to the different steps of the Change Management Approach for UN Coherence, ultimately culminating in the Joint Resource Mobilization strategy document and the supporting partner specific Resource Mobilization (work) plan: Step 2: Vision for Joint Resource Mobilization Step 3: Preparatory analysis and design of the Joint Resource Mobilization Strategy
  • Step 4: Design fund management mechanisms Step 5: Developing partner specific work plans for resource mobilization This guidance covers each of the above mentioned steps and is meant as a pragmatic, easy to apply tool that will provide you with an overview of the different steps when preparing a resource mobilization strategy. It is not meant as an exhaustive resource mobilization analysis.
  • Step 2: Visioning In the Visioning phase the UNCT articulates their high level vision regarding joint resource mobilization and the degree to which these joint efforts would be used to supplement agency based resources available for the implementation of the UN Business Plan. The visioning usually is part of a facilitated UNCT strategic retreat that is focussed on UN visioning around the different streams of the UN Business Plan, which includes the articulation of a UNCT vision regarding the use and deployment of a Joint Resource Mobilization. Articulating a UNCT vision on Joint resource Mobilization does not happen in isolation. In reality this is part of a broader visioning exercise that focuses on articulation of a UN vision on the role of the UN from a programme and Business Operations perspective. The articulation of a vision on joint Resource Mobilization and the establishment of a fund management mechanism is part of, and in some cases derives from, this broader visioning exercise and provides the basis for the development of the UN Business Plan. This change management approach to UN Coherence includes a guidance note in support of Step 2: Visioning. In addition to this guidance note the UN System through its support mechanisms at central and regional levels, including Staff College, usually supports visioning efforts, inclusing the vision underpinning the joint resource mobilization efforts, by providing political, technical and financial resources to facilitate UNCT strategic prioritization.
  • Step 3: Develop strategic framework In step 3: Develop Strategic Framework you are using the results of step 2: Visioning (the vision resulting from the UNCT strategic retreat and the results from different preparatory analysis) to develop the UN Business Plan, which is the strategic framework for all UN activities at the country level. In step 3 you will design your Joint Resource Mobilization strategy, leveraging the UNCT position on Joint Resource Mobilization from Step 2: Visioning. The Joint Resource Mobilization Strategy will allow you to identify the available funding and the funding gap, and subsequently develop a joint resource mobilizations strategy, supported by partner specific resource mobilization proposals. There are some prerequisites that have to be in place before you design your Joint Resource Mobilization strategy: • You have developed your UN Business Plan, including the results matrices for the programme work stream (UNDAF) and the different Business Operations work streams. The results matrices provide critical details that provide the basis for the resources required for the implementation of the UN Business Plan, and subsequently are critical for determining the resource gap. • You have established the resource requirements for each of the strategic priorities (outcomes), outputs and activities articulated in the UN Business Plan results matrices. The resource requirements are normally part of the results matrix. 1.1 Resource mobilization strategy The resource mobilization strategy developed in this step serves several purposes: • Integrated way of mobilizing resources in support of the UN Business Plan (reflecting UN Programmes and UN Business Operations), which is aimed to help governments to realize the MDG’s at country level. • Reduces duplication and focuses of resource mobilization efforts of the different UN agencies at country level • Increases the probability of realizing the Business Strategy by ensuring adequate resources are raised in a structured manner • Reduces transaction costs to partners due to streamlined interaction with the UN agencies • Enhances alignment with partner priorities and agenda’s as it identifies specific added value of UN country level strategies vis-à-vis the donor agenda and continued alignment between partner and UN strategic priorities.
  • The UN Business plan consists of five work streams that require funding: 1. UN Programmes (UNDAF) 2. Common Services 3. Common Premises 4. Joint Communication 5. Joint Resource Mobilization And one additional set of activities requiring funding: 6. Change activities required to deliver the outcomes in the first five work streams efficiently and effectively. The change activities are activities designed to identify and implement the change requirements required for the UN organization to ensure optimal delivery against the outcomes of the UN Business Plan. The funding requirements supporting the change activities need to be added to the resource mobilization once they have been finalized at the end of Step 4: Identifying the change requirement. Usually, programme related funds make up 90-95% of the funding required of the UN Business Plan, the remaining funding requirement being accounted for by the outcomes/activities relating to Business Operations and the Change Effort. Each of these work streams mentioned above is supported by results matrixes, including the resource requirements needed to realize the outcomes and outputs articulated in the results matrices1. This resource mobilization guidance will provide guidance on the mobilization of resources required to cover the resource gap (e.g. the gap in resources after regular budget and non regular resources have been used) to implement the unfunded part of the UN Business Plan. This joint Resource Mobilization guidance is therefore complementary to individual agency resource mobilization efforts. The following graph illustrates the context of the resource mobilization effort: UN Business Plan Available Resources: Funding Gap: Agency regular and Joint Resource non regular funding Mobilization 1 Note that the Common Premises does not have a results matrix per se, but the proposal for the Common Premises includes costing estimates for the realization of the Common Premises.
  • It is important to ensure the joint resource mobilization and the agency based resource mobilization efforts are complementary rather than overlapping, so it is useful to ask UNCT members to validate the resource gap and resource mobilization efforts to avoid overlap and duplication with the joint efforts. 1.2 Approach for the development a Resource Mobilization strategy The approach to resource mobilization covers five activities ultimately leading to a joint resource mobilization strategy, supported by a partner specific resource mobilization (work) plans tied to the funding gap of the UN Business Plan: 1. Analyze the resource gap 2. Analyze external environment 3. Match potential donors with unfunded outcomes in the UN Business Plan 4. Prioritize potential partners 5. Develop Resource Mobilization strategy document The graph below reflects this approach to resource mobilization:
  • 1.2.1 Analyze the resource gap The first thing to do is to establish the extent of the resource gap, e.g. the amount of resources that you need to mobilize. The basis for this activity is the results matrix of the UN Business Plan which outlines the resource requirements needed to realize the results and outcomes articulated in the business plan. In order to establish the resource gap you need to offset the resource requirement per outcome/output against the resources available per outcome/output. The result is a mapping of resource availability per outcome/output in your work plan. This in turn will provide you with information what areas of the work plan would require additional efforts in resource mobilization There are two main funding sources that UN agencies can use to fund outcomes and activities in the UN Business Plan: 1. Regular Budget UN Agencies: funds provided to an agency based on the relevant agencies country programmes, usually received from agency HQ. 2. Non regular resources UN Agencies: funds mobilized in addition to regular budget by agencies, usually directly received from a donor or other partner tied to a specific programme or project, including funding received from Thematic Funds such as the global Fund for HIV and AIDS and Global Environmental Fund (GEV). Business Plan Gap Funding: After mapping regular budget and extra budgetary resources to the activities in the UN Business Plan, it is possible you still have unfunded outcomes or activities in the UN Business Plan. Your resource mobilization efforts will largely focus on mobilizing resources to cover this funding gap. As such, the unfunded outcomes in the UN Business Plan provide the focus for your resource mobilization efforts. Result: 1. List of required and available resources and the resource gap, per UN Business Plan outcome/ output. How to do it 1. The UN Business Plan results matrix has the estimated resource requirements for both the programme and business operations outcomes and outputs. This establishes your anticipated resource requirement. 2. Each Agency should indicate to which outcomes/outputs in the UN Business Plan it plans to channel its regular budget and non regular funding. This establishes your actual resource availability. The indications should preferable be based on hard pipeline resources, e.g. resources with a high probability of being made available by the donor.
  • The majority of the funding associated with the UN Business Plan will be UN programme related funding, tied to UNDAF outcomes. The results matrix of the UNDAF is therefore a useful starting point to get the estimated required and available resource requirement for programme outcomes and outputs. 3. To calculate the resource gap per outcome, output and activity in the UN Business Plan, subtract your actual resource availability from your anticipated resource requirement per activity. Note that it is a matter of choice how much detail you wish to have in your analysis of the resource gap: depending on the available time, information and anticipated partner need for detail when mobilizing resources, you can decide to base the resource requirement on activities in the work plan. On the other hand, if less detail is needed, you can stay at the outcome and/or output level when estimating the resource gap. For further elaboration on this difference between outcomes, outputs and activities please refer to the guidance note on results based work planning. Please refer to this Excel template for a more detailed example of a template for mapping the required and available resources for the outcomes and activities in your working plan for change. 1.2.2 Analyze external environment You have already prepared a stakeholder analysis in Step 1: Initiation and Mobilization, which provided you with an overview of the partners who are active at the country level and their main development priorities. The results of the stakeholder analysis from Step 1, together with the estimates of the resource gap from the previous activity, will provide a basis that will help to prepare and focus your resource mobilization efforts by mapping the different partners at the country level and their key priority development areas:  Who are the relevant stakeholder, including government, development partners (both represented and non-represented partners) and other partners such as NGO’s and civil society at the country level?  What are their development priorities and agendas for the specific country?  Which of these partners is positioned to be a value adding partner for cooperation with the UN System, given their financial and technical resources that can be made available at the country level? Result: 1. Prepared list of relevant partners 2. Prepared list of stakeholder development priorities
  • How to do it In Step 1: Initiation and Mobilization you have prepared a stakeholder analysis that will provide you with an overview of the national partners and their development agenda and priorities. 1.2.3 Match potential donors to unfunded outcomes in the UN Business Plan During the positioning activities, you match the unfunded outcomes in the work plan (results activity 1) to the different partners priorities, based on the analysis of donor priorities and partners development agenda in the recipient country (results activity 2). Linking the partners’ priorities to UN activities will provide the foundation and focus for your arguments for cooperation between the donor and the UN system. A critical component at this stage is the development partner’s perceptions of UN performance and comparative advantage. In Step 1: Initiation and Mobilization you have prepared a UN comparative advantage analysis as part of the preparatory analysis for the visioning exercise. The results of the UN Comparative Advantage analysis in Step 2 will provide useful input regarding UN Comparative advantage The results of this matching exercise will allow you to develop a partner specific overview of outcomes that are part of both the UN and the partner’s development strategy. It is on these outcomes/activities that your resource mobilisation efforts with a particular donor will focus on. Result: 1. Matched UN strategic outcomes with different partners strategic outcomes: “Long List” of potential partnerships How to do it 1. Take the overview of outcomes from the work plan that is currently not or only partially resourced, e.g. those outcomes that have a funding gap, as a starting point. 2. Match the unfunded outcomes in the UN Business Plan to the corresponding outcomes in the partner’s strategic framework. This overview should highlight the niche areas you will be targeting for cooperation. The result will be a list of partners that share the strategic focus areas of the UN, with a focus on unfunded outcomes. 3. As you will be analyzing a number of partners, it is recommended to match potential partners only at the outcome level. In the next step, once you have identified the key partners, you will deepen this activity to include a detailed matching between the UN and the partner at the output and/or activity level2. However, given the labor intense nature of this analysis, you would prefer to only do this detailed analysis for those potential partners that are more likely to be open for a partnership around a common strategic outcome. 2 Note that matching at the activity level is very labor intensive and should be undertaken only when there is a specific need for it.
  • These linkages between the partners and the UNs strategic framework form the common ground based upon which a partnership can possibly be established. If no match can be established, there is likely little common ground between the UNs strategic outcomes and the partners’ development strategies and it is therefore unlikely that a partnership between the UN and the partner would yield any added value to either. Note: Partners country programmes are likely to focus mainly on programmatic interventions. To get a sense of their willingness to fund business operations or change initiatives for specific business operations that benefit the partners programmes or operation as well, it is useful to either include all unfunded outcomes (e.g. programme and business operations outcomes) them all in the overview to see how the partner reacts to the initiatives, or to do some up front analysis to see what their positioning is, for example through an informal meeting. The graph below reflects the process: EXAMPLE UN Business Plan Partner Development Strategy Work stream 1: UN Programme outcomes (UNDAF based) Governance: Enhanced Partner A women’s representation in parliament Food Security: Stimulated use Partner B of productivity enhancing farming methods Work streams 2-5: Business Operations outcomes Workstream 2: UN Common Services: Joint Procurement Cross agency funding UNCT mechanism established for Office supplies Workstream 3: UN Common Government Premises: UN agencies co- located in Common Premises Please refer to this Excel template as a tool for mapping the unfunded UN strategic outcomes against potential partners strategic focus.
  • 1.2.4 Prioritize potential partners In the previous activity you have mapped the UN strategic outcomes against the partners’ strategic outcomes, resulting in a list of potential partners for each unfunded outcome in the UN Business Plan. Because of various reasons, some potential partners could add more value then others. Prioritization of partners is a key element to your Resource Mobilization Strategy to ensure the highest impact for the time you will spend on your approach to partners. Result: 1. Identified key partners, “shortlist” of most relevant potential partners How to do it Identifying and prioritizing these key partners is somewhat subjective and can be based on a wide range of criteria based on what makes a partner “key”. Below some elements that could support you in this decision: • The financial or technical resources a partner has at its disposal at the country level • Good existing working relationship with the partner • Preferred partner by government • High number of outcomes the UN and the partner have in common (number of matches made) • Other comparative advantages of the partner such as technical expertise, access to political networks, track record etc. Complete the matrix below to prioritize your partners. The stakeholder assessment results from step 1 can also support you when prioritizing partners. Ideally you want to have one or more preferred partner for each unfunded outcome in the working plan for change. In reality however, it may be harder to secure resources for some outcomes than for others, based on the number of partners in the country and their agenda. 1.2.5 Develop Resource Mobilization strategy document Now that you have a reduced set of key potential partners, you have all the inputs required to develop the joint resource mobilization strategy in support of the UN Business Plan. The Resource Mobilization strategy uses the results of the stakeholder assessment and the results of the previous steps (3.2.1 to 3.2.4) to provide an overview of the strategic goals of the UN, the resource gaps and how the UN can add value to partners by identifying and pursuing common goals.
  • More specifically, a resource mobilization strategy consists of the following sections: 1. Background: National priorities and Business Strategy, possibly including analysis resource trends at the country level 2. Works streams of the Business , including the main outcomes/outputs for each work streams, as articulated in the Business 3. Resource requirements and resource gap for each of the strategic outcome/output areas 4. Key partners at the country level for each outcome/output area 5. UN value proposition for each outcome/output for each key partner 6. Key principles for the UN Joint Resource Mobilization 7. Governance structure for the fund management mechanism (ref step 4: Identify organizational change: Design fund management mechanism) 8. Monitoring and Evaluation mechanism for the fund management mechanism (ref step 8: Monitoring and Evaluation) 9. Risks and rewards of the joint resource mobilization strategy How to do it 1. Take the list of unfunded UN strategic outcomes (result 3.2.1: Analyzing the resource gap) 2. Take the high level matching between the donor and the unfunded UN strategic outcomes, resulting from the previous activity (result 3.2.3: positioning UN strategic outcomes) 3. For each of the unfunded UN strategic outcomes, specify the different outputs that together realize that strategic outcome (the UN Business Plan will provide you with this information) 4. List for each unfunded UN strategic outcome/outputs and the resource requirements needed to realize it (e.g. the resource gap) 5. Develop the value proposition: Specify for each of the matched strategic outcomes how the UN outputs contribute to the realization of the partners strategic outcome (e.g. what added value do the UN outputs/activities have for the partner) 6. Outline potential rewards and risks of your RM Strategy in order to reap rewards and mitigate risks. Refer to the risk management guidance in step 5 for further details how to identify and manage risks. This resource mobilization strategy will be the basis for your resource mobilization work plan in Step 5: Develop implementation plan. Please click on the following link for a template that you can use and adapt when developing your joint resource mobilization strategy 1.3 Underlying principles of the resource mobilization strategy
  • In order to design and implement a joint resource mobilization strategy, you need to discuss and agree on a number of underlying principles. Securing such an agreement from the very beginning will ensure application of agreed principles during the implementation stage. The key areas, which would require an agreement of participating UN organizations on main principles to be followed, as well as some examples of such principles, include: 1.3.1 Principles of a joint resource mobilization strategy Pursuing strategic focus: • Being the partner of the Government, the UN will mobilize resources for the country, and not for the UN; • Decisions on key resource mobilization and allocation targets will be guided by strategic priorities defined by the UN and its national partners – the UN needs to balance multiple priorities without creating competition for resources. • To ensure focus on national priorities and allow the maximum flexibility in planning and funds allocation, multi-year and un-earmarked donor contributions will be encouraged as much as possible. (If this is not possible, the level of acceptable earmarking should be decided upon by the participating UN organizations. Nevertheless, the proportion of earmarked funding should be minimized.) • Resource mobilization efforts will primarily focus on securing funds for coherent and relatively large programmes that offer the prospect of longer-term impact than for smaller individual projects, which are often time limited. Maintaining trust: • All participating UN organizations will be equally responsible for building trust in the quality of the UN deliverables, including analysis, policy advice, product lines, as well as the capacity to build networks and deliver results. • All participating UN organizations will equally contribute to the establishment of close and professional working relations with donors based on credibility and transparency. Donors should be approached in a spirit of transparency, openness and dialogue. • A partnership culture, that includes networking and knowledge management with an outward, client-oriented mentality, will be preserved at all levels in all participating UN organizations. • Partnerships will be established beyond financial agreements, which also means reciprocity in relationship – be a source of knowledge and information for partners at any time, even if information is not related to the UNs core operations. • Interests and concerns of all participating UN organizations will be respected and treated in a fair and transparent manner. Managing expectations:
  • • To ensure delivery of results, it is essential for all participating UN organizations to have clear understanding of their individual and collective roles and responsibilities from the very beginning. • Accountabilities of various participating UN organizations should be fostered through results-based management, whereby an organization ensures that its processes, products and services contribute to the achievement of desired results Communication and information sharing: • The participating UN organizations will be regularly informed on any resource mobilization initiative and subsequent results. To make this possible, the participating UN organizations will provide regular information to their partner agencies through a centralized mechanism to be created with the agreement of the participating UN organizations. • Staying abreast of donor interests and needs is key to successful resource mobilization. Through a centralized mechanism, where donor mapping and update of donor profiles will be kept, the organizations should continuously update their intelligence on donor interests and information needs. • Quality and timely information is imperative to resource mobilization. Proposals, donor reports and human-touch stories will support these efforts. Information needs vary widely – from the very technical for some partners to the impact that US $100 can have, for individual donors. Such peculiarities should always be taken into account. Reviewing the results: • A successful and sustained resource mobilization effort greatly depends on having a strong monitoring and evaluation system in place. This is important for ensuring that the flows of committed and disbursed funds are tracked with accuracy and speed. • Honest and transparent evaluation of the uses of funds and their impact in related areas is also crucial in maintaining the credibility of the entire effort and trust of the current and future donors. • A strong financial monitoring and evaluation system for resource mobilization also means equitable access to information by all participating UN organizations. 1.3.2 Good Practices for developing your joint resource mobilization Resource Mobilization (PRM) Strategies have a tendency to be overly general. Only a few are specific, operational and action oriented, but here are some tips to ensure that your PRM Strategy is more concrete: • Don’t reinvent the wheel: Utilize the analytical work your team has conducted as part of your external and internal assessments in order to reflect these elements in your PRM Strategy. • Process, Process, Process: The process of developing a PRM Strategy is just as important as the product itself. Using a participatory approach, i.e. involving the entire CO staff, results in a high
  • degree of ownership, and thinking / brainstorming together can lead to a common appreciation of partnerships throughout the CO team. • Be specific: It is not enough to tell how much money you aim for, describing the country context and the projects in the pipeline, and to mention that partners are needed and which partners could be potential future counterparts. Because partnerships are a part of the solution, it is necessary to be concrete on how you will strengthen the partnerships. • Keep it fresh: PRM Strategies can quickly get out-dated and redundant. It is important to revisit and revise your strategy on a regular basis – especially when you formulate a new Country Programme – to ensure that your strategy stays relevant and on target. Be Cautious not to repeat these Common Mistakes: • The PRM Strategy failed to keep up with the changing strategic direction of the Country Programme after it was aligned to the priorities of the new PRSP. • The strategic objectives laid out in the PRM Strategy are not based on sound external and internal analysis. For example: o While identifying donor fatigue, the PRM Strategy failed to adequately predict the drastic decrease in commitments from bilateral donors to the country. o The PRM Strategy overstated the potential of certain donors to fund UNDP projects and under-stated the groundwork required to mobilize resources from the private sector. o The PRM Strategy did not properly assess the amount of work related to the agreed projects and therefore negotiated inadequate cost-recovery.
  • Step 4: Identify Change Requirement: Design Fund management mechanisms In the previous Step 3: Design Business Strategy you have defined your overarching business strategy articulating outcomes for five different work streams: UN Programmes, Joint Communications, Common Services, Common Premises and the Joint Resource Mobilization strategy. In Step 4: Identify organizational change; you design the fund management mechanism that will manage the resources in support of your Business Strategy. This funding mechanism will subsequently support the actual implementation by managing the required resources for the different activities. The implementation plan designed in step 5: Design implementation plan will provide detailed information on resource requirements for each of the work streams in the Business . Currently there are three broad categories of fund management mechanisms in use by the UN System that can be used to manage the resource mobilized by joint resource mobilization activities of the UNCT. These mechanisms are: 1. Parallel funding mechanism 2. Pooled Funding Mechanism 3. Pass through funding mechanism All three methodologies are supported by UNDG and standard templates and tools are available at the UNDG website. The ultimate choice for either mechanism depends on the preference of the UNCT and specific country circumstances. Operational details on each of the fund management options are provided on the UNDG website (www.undg.org) under the heading programme guidance: UNDG has developed Standard Administrative Arrangement and Memoranda of Understanding to be used for the pooled and pass-through fund management options. The Business Strategy does not necessarily have to be supported by one financing mechanism only. Given the broad scope of the Business Strategy, a combination of the above funding mechanisms could be used for different work streams. The decision to select one or a combination of fund management options in support of the Business Strategy should be based on how to achieve the most effective, efficient and timely implementation of business plan outcomes, and to reduce transaction costs for national partners, donors and the UN. 1.4 Parallel funding mechanism The parallel funding mechanism is a fund management mechanism where each UN organization participating in the Business Strategy manages its own funds, whether coming from Regular or Other Resources.
  • This fund management option is likely to be the most effective and efficient when the activities of participating UN organizations are aimed at common results (articulated in the Business Strategy and the supporting implementation plan), but with different national, sub-national and/or international partners. Under this option, each organization manages their part of the activities agreed in the implementation and the related budget, whether from Regular or Other Resources. Once all components of the Business Strategy implementation plan have been agreed to by (sub-) national partners or service providers and each of the participating UN organizations, roles and responsibilities for coordination of the various interventions and for producing a single aggregated/consolidate report should be documented. Due consideration should be given to the need of dedicating sufficient human resources for such functions. All participating UN organizations should share the costs of coordination. Additional human resource requirements, if any, could be included in funding proposals. Funding arrangements under this option follow each agency’s regulations and rules for individual programming and project processes. UNDG has developed a technical guidance note providing further details on the parallel funding mechanism. Please click on this link for further guidance. 1.5 Pooled funding mechanisms The pooled funding mechanism is a fund management mechanism where participating UN organizations work for common results (articulated in the Business Strategy and the supporting implementation plan) with a common national or sub-national partner (e.g. Department, service provider, provincial office, NGO) and/or in a common geographical area. Under this option, participating UN organizations pool funds together to one UN organization, called the Managing Agent, chosen jointly by the participating UN organizations in consultation with the (sub-) national partner. Once the business strategy has been developed and agreed jointly by the participating UN organizations, the arrangements for monitoring, review, and coordination should be documented. The composition of the business strategy coordination mechanism shall include all the signatories to the business strategy document. The coordination mechanism may also have other members, such as donors and other stakeholders, in an observer capacity. However, such decision is made at country level. Each UN organization participating in the pool would sign a Memorandum of Understanding with the MA. The MA is accountable for timely disbursement of funds and supplies, and for coordinating technical inputs by all participating UN organizations. The MA also follows up with the (sub-)national partners or service providers on implementation, and is accountable for narrative and financial reporting to the business strategy coordination mechanism. The MA may engage in resource mobilization for the joint programme, in consultation with government and participating UN organizations.
  • The Managing Agent is accountable for supporting the (sub-) national partner in managing the business strategy in line with the common work plan, specifically for timely disbursement of funds, and supplies and for coordinating technical inputs by all participating UN organizations. The MA also follows up with the (sub-) national partner on implementation, and is accountable for narrative and financial reporting to the business strategy coordination mechanism. The MA may engage in resource mobilization for the joint programme, in consultation with government and participating UN organizations. UNDG has developed a technical guidance note providing further details on the parallel funding mechanism. Please click on this link for further guidance. 1.6 Pass through funding mechanism A fund management mechanism where a donor(s) and UN participating organizations agree to channel the funds in support of the Business Strategy through one participating UN organization. The UN Organization channelling resources, hereinafter called the Administrative Agent (AA) would be jointly selected by all participating UN organizations. The programmatic and financial accountability will rest with the participating UN organizations and (sub-) national partners or service providers that would be managing their respective parts of the business strategy activities. The pass-through mechanism may also be used as a funding mechanism in broad national level planning and resource mobilization processes, such as the UN Business Strategy. Once the business strategy has been developed and agreed jointly by the participating UN organizations, the arrangements for management, review, and coordination should be documented, including role and responsibilities of the AA. The business strategy coordination mechanism shall include all signatories to the business strategy document. It may also have other members, such as donors and other stakeholders, in an observer capacity. However, such decision is made at country level. Based on agreement of the business strategy coordination mechanism identified at country level, the AA will negotiate and sign a Letter of Agreement with the donor(s) in respect of the joint programme. If the donor(s) and participating UN organizations agree to channel the funds through one participating UN organization, then the pass-through modality applies. The UN organization channelling resources, hereinafter called the Administrative Agent (AA) will be selected jointly by all participating UN organizations in consultation with Government. The common work plan would clearly indicate the activities to be supported by each of the participating UN organizations. The indirect costs to be charged by each organization would be reflected in the respective budgets. The programmatic and financial
  • accountability will rest with the participating UN organizations and (sub-) national partners or service providers that would be managing their respective components of the joint programme. UNDG has developed a technical guidance note providing further details on the parallel funding mechanism. Please click on this link for further guidance. An example of a pass through funding mechanism is the Multi-Donor Trust Fund (MDTF). The MDTF is a funding mechanism which receives contributions from more than one donor which are then pooled and disbursed upon instructions from the Fund’s decision-making structure by an Administrative Agent (or Fund Manager) to a number of recipients. Multi Donor Trust Funds can be established in support of one theme (Peace building Fund or Avian Flu Fund) or they can be country specific and designed for a variety of purposes (UNDG Iraq Trust Fund, Lebanon Recovery Fund). In this context, the UNDG MDG Achievement Multi-Donor Trust Fund is an MDTF administered by one UN agency acting as Administrative Agent on behalf of all the members of the UNDG to whom the funds are then channelled for project implementation. UNDG MDTFs operate on the basis of the UNDG Joint Programming principles. For further details on the MDTF mechanism, please refer to the MDTF website.
  • Step 5: Develop work plan for implementation 1.7 Resource Mobilization Plan The resource plan is a detailed work plan that will guide the implementation of your joint resource mobilization strategy. 1.7.1 Develop resource mobilization plan Once you have drafted your Joint Resource Mobilization strategy made a decision on which fund management option to manage the resources mobilized, one activity remains before engaging the actual donor and that is the develop your detailed resource mobilization plan. Step 5 also features more generic guidance on Development of a Results Based Implementation Plan. Drawing on the resource gap analysis, the analysis of external working environment and the identification of your key partners you are ready to develop a partner specific resource mobilization (work) plan that is based on the specific synergies between the UN development agenda and the partners’ development agenda. The detailed analysis supporting the development of the Resource Mobilization Strategy in Step 3 can be sued now to develop a partner specific, detailed resource mobilization plan that will allow the UN to engage the partner in specific niches where we share strategic direction and focus with the key partner. Results: 1. Detailed matching of UN and key partner agenda 2. Partner specific resource mobilization presentation 3. Partner specific resource mobilization plan How to 1. For each potential partner, combine the matched strategic outcomes relevant to this partner in one partner overview. This is the main focus of your partner specific resource mobilization strategy. 2. Translate the different resource mobilization proposals for one specific partner into for example a PowerPoint presentation or a word partnership proposal that can be discussed with the partner. 3. Prepare a resource mobilization work plan: For each partner, create time-bound, measurable targets linked to the various elements of your partner specific Resource Mobilization Strategy. 4. Develop partner specific presentations
  • Please refer to this Excel template as a more detailed example of a template for creating donor specific resource mobilization sheet. 1.7.2 Engaging potential partners Now that your Joint Resource Mobilization Strategy and your Resource (work) Plan are in place you are ready to engage the potential partners: Results 1. Key partners engaged 2. Proposal developed and signed How to There are different ways to engage your partners once you have developed your partner specific resource mobilization plans, • One on one meetings with key donors • Joint donor meeting Your choice would depend on various factors including: • the number of partners (it may be more efficient to have a joint donor meeting if the number of partners is large) • the extent of the difference is weight of one or more partners vis-à-vis the others (if there is a broad common basis between the UN and one or more donor (e.g. large number of outcomes they share, it may be more effective to have one on one meetings. Once both the UN and the potential partner agree to a partnership, develop the partnership proposal / costed project plan. The format of this plan depends to a large extent on the specific requirements from and agreements with the partner. Part of the proposal is a Standard Administrative Arrangement (SAA) and a Memorandum of Understanding that form the legal basis for the agreement. 1.8 Managing the donor relations Now that you have successfully developed and implemented your Resource Mobilization Strategy and tuned the communication message to the donor, it is important to foster a proactive approach to managing ongoing donor relationships in order to promote long term partnership relations between the UN and the donor, based on added value to each others
  • development agenda. This section offers practical suggestions for the promotion of good practices in your donor relations management approach. Resource mobilization is not a one off activity, but rather involved an ongoing effort to nurture the relation between our partner and ourselves. Maintaining an accurate understanding of the up-to-date situation in your country’s development context and knowing the demand from partners, will uncover opportunities to be negotiated at the country level, including long term partner relationships, funding arrangements and identification of other (extra budgetary) resource opportunities. 1.8.1 Fostering trust between the UN System and your partners through fulfillment of obligations Assuring that partners are aware of the UNs progress in delivering on its commitments is an integral component of ongoing donor relations. Accurate and timely reporting builds possibilities for future partnerships. Such an approach allows for the UNCT to review the realization, relevance, timeliness and quality of outcomes while fostering transparency and building trust between you and your partners, hence promoting sustained relations over time.  Different partners have varying M&E and Reporting prerequisites and templates, which greatly affect the resources needed to meet these requirements.  When initially engaging with the donor, assure that you get a sense of these requirements and whether you are in the position to meet them, given all of your reporting obligations, and if not, what investments are necessary.  Having this discussion early on, allows you the opportunity to promote the use of a standard template for reporting, which ensures uniformity in data collection and limits transaction costs, which are all benefits to the donor. For more direct and elaborate guidance on Monitoring & Evaluation as well as Reporting, please defer to Part 7: Monitoring and Evaluation of the Toolkit. 1.8.2 A win-win approach to ongoing management of donor relations  Establish a partnership culture at all levels that includes networking and knowledge management with an outward, client-oriented mentality. This is an area where the non-profit sector may very well take a good lesson from the private sector. Managing your donor relationships from a client-oriented viewpoint fosters client- satisfaction, which in turn allows you to maximize your partnership opportunities. Ensuring that you are a solid discussion partner for your partners would necessitate that you stay abreast of ongoing policy discussions in your donor’s country, so that you may better gauge national development priorities. You may accomplish this easily, for example, by scouting through donor
  • country newspapers, publically available parliamentary / government communiqués and agendas, and the wealth of information available on the internet. However, in order to assure that this approach is sustainable for you, consider integrating systemic mechanisms for anticipating long term donor needs by conducting periodic assessment of donor needs and priorities.  Continue to build on strong personal relationships with not only partners and government officials, but also with key local development players in civil society and the private sector; prominent figures, intellectuals, academics and community leaders. An all inclusive approach will assure that you stay abreast of the most pressing national needs, which in turn is a valuable input to your ongoing development efforts. Additionally, taking the opportunity to share the information with prospective or current partners is an added value to the relationship and positions you well as an attractive counterpart to your partners.  Establish partnerships beyond cost-sharing arrangements, which promote reciprocity in the relationship as well as build trust in the level of analysis, policy advice, product lines, and capacity to build networks and to deliver. In all of your activities, be open to opportunities and strategically maximizing the benefits from all of your efforts. For example, knowing the agenda and focus of your key partners allows you to draw on UN System in-country expertise in order to highlight how UN development efforts as well as current funding address those key issues. This may be accomplished in a case study, for example. While not a requirement in the formal relationship, such an approach, nevertheless, would showcase the UNs outreach in a key donor interest area, potentially opening up possibilities of further partnerships, and hence expended funding. Like you, your partners have their own sets of partners to answer to and issues to focus on such as National priorities. By doing a stellar job at showcasing your added value and building comfort around how the UN System is delivering on funds, you are being a positive and welcome input to the messages that the partners themselves have to deliver to their partners. This example of a win-win approach, positions you to help your partners, help you!  Successfully use communication opportunities that promote support for innovative ideas. The media and public opinion can be very powerful lobbies to transform pilot initiatives into national projects. Assure that you are maximizing on the UN System’s brand and success in-country by capitalizing on your relationship with the media to further promote UN development initiatives, always highlighting the donor whose funds made your work possible. This approach, for example,
  • disseminates information on the ground, promoting the significance of the UN as well as the partner(s) who funded your efforts. 1.8.3 Anticipating long term donor needs We explored approaches to the analysis of your partners in the national context prior to mobilizing resources earlier on in this section of this Guidance Note. It is critical for the sustainability of your partnership building efforts and subsequent resource mobilization activities that you consider how to systematically engrain such ongoing analysis, as it will and should affect your development agenda. One natural moment to reassess donor needs, for example, is the annual UNDAF review. This is an opportune moment as any consequences due to shifts in donor interests and priorities may be addressed and instilled in the UNDAF at that moment. However, there are many options for instilling stakeholder needs reviews into a systematic methodology, as based on your country’s context, the types of partners you are working with as well as the working culture of your UNCT. As such, the UNCT is in a good position to brainstorm the most effective methods that will work for you.