Diaspora Collaborative Fund The Impact Challenge Proposal HatemMahbouli (email@example.com) Suhail Ahmad Ashley Silverio
Background Individuals can donate to a friend’s cause or renowned non-profit. They can also donate to support projects in their home country. There is huge potential among expatriates all around the world: they are often educated people with good status coming from low income countries that need investment and donations Country-specific programs can strongly motivate the diaspora of each individual country Diaspora awareness and money can be leveraged to help communities in their home countries. Expatriates know theirnation’s development priorities better than others.
The Diaspora Collaborative Fund:The Concept (1) The fund will target expatriates from one specific country The participants will agree to put amounts in the fund from $1000 to $100000 In aggregate these funds constitute a sustainable financial asset to generate return Only the returns are donated to finance development projects in the home country. Initial donations remain within the fund.
The Diaspora Collaborative Fund:The Concept (2) The funds raised through the diaspora participations can be invested in: return generating projects in the concerned country (social enterprises) Social impact investments in financial markets The return on investment is distributed to development projects or as grants for local entrepreneurs
Collaborative Fund (Web Platform) Impact Finance + Social Enterprises investing Donating returns on investments The Diaspora Collaborative Fund – Example of Tunisia
Reducing Transactions Costs The Diaspora will be reached through associations, embassies , banks and media outlets that target this specific community. The investor-donor connects to the fund website, creates a profile and fills in the form to credit the chosen amount Beside individuals, organizations and development agencies interested by the country can participate in the fund
Value-driven Allocations Projects to be financed are proposed by organizations that are active in that country The fund selects the most valuable and displays them on the website Clear metrics will be displayed to guide the donor’s choice: Budget of the project/timeline/number of beneficiaries… Participants vote for the appropriate project to be financed Experts and people living in the country connect to the website and vote the best project too. They can communicate and express their concerns and goals directly to donors. The donor-investor not only gives financial support to his country but also discusses and receives direct feedbacks from his compatriots
Transparency and “Refund” Policy The participant commits to maintain his participation in the fund for at least three years so it can be appropriately invested In case of dissatisfaction with the projects and the fund policy, he can withdraw his participation after 3 years he can renounce donating the return on investment and leave the fund The fund is therefore incentivized tosupport efficient projects
Innovative ideas Thid project contains many new ideas that can be applied to other initiatives:
Developing a fund and only donating it’s returns
Targeting a specific country so we can leverage the tremendous diasporas financial potential and their country-related ideas and networks
Enable the future beneficiaries to promote their projects and discuss directly with the donors
The “refund policy” to achieve efficiency and promote accountability
Appendix: The Tunisian Pilot Local fund in local currency Tounesna-Fund.org* International Maghreb Merchant Bank** Tunisians abroad Tunisia NGOs PADIL Development services** Cooperatives Local development partner *website in process ** contacts already made