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14 april diversification izabella toth [compatibility mode]


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14 april diversification izabella toth [compatibility mode]

  1. 1. Diversification of funding sources: Key to independence and sustainability of CSOs Izabella Toth, CORDAID 14 April 2011, Brussels European Open Forum for CSO Development Effectiveness24-5-2011 1
  2. 2. SUMMARY• Factors that influence the present donor aid modalities: the Aid Effectiveness Agenda• CSO Policies and future trends at the level of donors• Preconditions for successful resource acquisition24-5-2011 2
  3. 3. Factors that influence the donor aid architecture and modalitiesThe 2005 Paris Declaration (national ownership, alignment, donor harmonization, managing for results & mutual accountability): focus on the role of the Southern Government.Accra Agenda for Action, 2008: Art. 20: need for participation of csos in national policy formulation, need for creating an enabling environment for csos, need for effectiveness of csos & need to respect the autonomy of csos.Donors need to be more strategic and focused with their funds (concrete measurable deliverables). 24-5-2011 3
  4. 4. Some of the factors influencing the debate on the future EU multiannual Budget (2014-2020)• Chinees model for develpment?• « inclusive growth »= « economic growth » = new mantra for development• Private sector = potentially new actor• Global common goods (climate, good governance) via pooled funding• Migration & development issues• Security / common foreign security policy predominant when making choices• Increased reliance on multilateral aid (via EC, WB, UN ed)• Bilateral donors give more & more support via Direct Budget Support• Emphasis on country context AND• Emphasis on country différentiation: choices according to specific priorities, such as economic interests of the donor)• Donors seek alternative development aid providers: local authorities, private sector, consultancies even… 24-5-2011 4
  5. 5. Civil Society seen by donors as..• Contractors to implement government programs• Watchdogs to monitor implementation of the government programs (incl budget monitoring)• Substitutes for the State in Fragile States• Actors towards broadening participation in National Development Planning. The policy goal of supporting a vibrant civil society is not operationalised in mechanisms that make inclusive approaches possible. Following the Maghreb revolutions: Donors have to give attention to “support destabilization” (recognition & support to civic movements and CSOs), instead of supporting “stabilization” (deriving from own geopolitical interests)24-5-2011 5
  6. 6. CSO Policies and future trends at the level of donors (source: Intrac Study for DFID, May 2010)Multilaterals:• CSO policy focused on need for consultation & participation in programs at country level + the inclusion of Global CS groups in lobby towards multilaterals towards their policies.• Perception of role CS: moving from service delivery towards agenda- setting role in multilaterals policies and practices.• UNDP, UNICEF and EC encourage “upstream” strategy for involvement of CS (in national policy dialogue).• Greater focus on contextual understanding of the needs (context analysis per country / region)• Mapping exercises of CS in countries, for better understanding of the local spectrum.• UNICEF and African Development Bank:: developing Guidelines on partnership with CS-groups.• EC: requires Delegations to consult with local CS during Country Strategy. Mandatory Guidelines to involve CS in sector programming are also on their way. 24-5-2011 6
  7. 7. CSO Policies and future trends at the level of donors (Intrac study May 2010)Bilaterals:• Objective of CS policy: approach towards strengthening CS for its own sake• Civil Society has greater role at global level (international foray and Human Rights framework): added value CS in advocacy (besides service delivery) and strong focus on capacity building.• Increased focus on contextual understanding of needs (context analysis per country / region).International Private Foundations:Focus driven by the interests and passions of the foundersMission: increase opportunity and equity for those most in needDelivering results with the resources they gave is of the utmost importance24-5-2011 7
  8. 8. Space for CSOs in the aid architecture and respectivemodalities?• Have we become over dependent? Do we still follow our own vision & mission? Or do we adjust “accordingly”?• How do we deal with the limitations (in access to voice and access to funding) provided by the present architecture?• Are we able to “show value for money” as interpreted by donors? Do we have and want to do that?• Can we / our partners truly fulfil watchdog roles, given the challenging environment CSOs work in? Processes need long term, sustainable funding. How do you explain “need funds to change power relations” to a donor?• Call upon donors: formulate strategies for cooperation and support of CS. See CS as agents for change.24-5-2011 8
  9. 9. Develop an own fundraising strategy Invest in proper Fundraising strategy development, owned by the whole organisation (from senior manager to implementing staff)Reflect upon• Sort of actions to be presented to a funder.• What’s the added value of your action? (to your strategy, to your target group’s needs? To the donor’s priorities?)• Is your action visible and marketable?• Which financing modality fits best YOUR organisation?• Which partners do you sollicit? Do they sollicit you as well?•24-5-2011 Which donors do you approach, Why and HOW? 9
  10. 10. Suggestions for successful resources acquisitionUse a good Communication strategy• knowledge management / policy papers / position papers on your unique selling points• visibility plan for the organisation and / or actions24-5-2011 10
  11. 11. Suggestions for successful resources acquisitionInvest in Relation management with potential donors (public & private)• Be proactive• Contact personally delegations, embassies, government representatives• Organise events and invite potential donors• Give exposure to your organisation Highlight your best practices and successes (individually AND in coalitions)24-5-2011 11
  12. 12. Suggestions for successful resources acquisition- Create your own alert system: - On donor priorities, eventual publication cycles, for calls and other trackable opportunities- Work with professionals for writing – or reserve capacity to acquire expertise when requested- Establish clear division of labour within your organisation – during acquisition and implementation- Make sure that institutional capacity of your organisation is adequate•24-5-2011 12
  13. 13. Preconditions for successful resource acquisitionEligibility Criteria of Organisation:• Proven trackrecord on the subject of the funding possibility / call• Sound management system• “matching funds” availableAt Level of the Proposal:• Sharp needs assessment (including knowledge of donor priorities)• Good Planning• Sharp proposal for execution• Sound monitoring and evaluation plan• Sound methodology proposed for sustainability of action24-5-2011 13
  14. 14. Preconditions for successful implementation…this is your track record….Sound institutional settings:• good internal management (committment of the whole organisation, from Board to Staff)• proven finance and accounting systemGood knowledge of - and capacity for implementing rules and regulations set by donors24-5-2011 14
  15. 15. What would any donor like to see? (any donor!)• Awareness of, and links with donor strategies, or vision upon goals to be reached (general public)• Work together in Consortia and coalitions structures• CSO ownership of the action (incl. own financial contribution)• Measurable and visible results24-5-2011 15
  16. 16. Thank you. Questions?24-5-2011 16