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global trends




Foundation grant-making
• USA
• Europe
• The rest of the world



• Real foundations
• Corporate foundations
• Vehicles for philanthropy
•   Outcomes – impact
•   Excellent monitoring and evaluation
•   Direct to the South
•   Sustainability
•   Seedcorn – innovation – clear exit strategies
•   Scalability
•   Research
•   Timing for applications
•   Cultivate where possible
•   Field and HQ
•   Follow guidelines
•   Don’t waste their time
•   Project quality – reporting quality
•   Timing for reports
•   Do the unexpected extra
•   It’s not the first grant that counts – it’s securing the
    second grant
• Independent foundations
• Corporate foundations
• Community foundations




$33 billion estimated giving by
independent foundations in
2008
International – US-based
   recipients 15%




                              Domestic 76%


International – Overseas
recipients 9%
B&M Gates               $2,741m
W&F Hewlett             $623m
Ford                    $282m
Susan Thompson Buffet   $187m
D&L Packard             $123m
G&B Moore               $115m
J&C MacArthur           $102m
Rockefeller             $78m
Mellon                  $61m
Carnegie                $58m
• Very varied from country to country
• UK most developed – highest proportion of overseas
  donors, good research publications
• 95,000 foundations across Europe
• Top 50 foundations have assets of €88bn
• 94% of funds go to organisations in the foundation’s
  country
• International development is the third biggest area of
  funding interest
• EC examining need for a European Foundation Statute
• Research very patchy
• Emerging foundations in the Middle East, India, China
• Most foundations behave like HNWIs – often owned
  by one philanthropist or their family
• Very private – unsolicited bids often unwelcome
• Personal networks are the best way in
Typical funder structure
       Headquarters



                           Sectors



                           Countries
Effective resource mobilisation
          Headquarters



                             Sectors



                            Countries
•   Community development
•   Civil society
•   Innovation
•   Inclusiveness
•   Children’s rights
•   Critical issues to address
•   Where should we focus our energies?
•   How ready are we to respond?
•   What changes will we have to make
    • Processes
    • Structures
    • Skillsets
    • Personnel
• Part funding leads to funding shortfall
• Full funding but no allowance for
  overhead
• Funding does not cover full life of project
Salaries         50,000   Staff costs    68,750
Direct costs     25,000   Direct costs   25,000
Overhead 10%     7,500
Management 15%   11,250

Total            93,750   Total          93,750
Salaries                 50,000
On-costs 10%             5,000
Recruitment, training    5,750
Office costs             5,000
Direct support           3,000

Staff Costs              68,750

 Still claim % overhead where you can – this is then profit

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Foundation Grant Making

  • 2. • USA • Europe • The rest of the world • Real foundations • Corporate foundations • Vehicles for philanthropy
  • 3. Outcomes – impact • Excellent monitoring and evaluation • Direct to the South • Sustainability • Seedcorn – innovation – clear exit strategies • Scalability
  • 4. Research • Timing for applications • Cultivate where possible • Field and HQ • Follow guidelines • Don’t waste their time • Project quality – reporting quality • Timing for reports • Do the unexpected extra • It’s not the first grant that counts – it’s securing the second grant
  • 5. • Independent foundations • Corporate foundations • Community foundations $33 billion estimated giving by independent foundations in 2008
  • 6. International – US-based recipients 15% Domestic 76% International – Overseas recipients 9%
  • 7. B&M Gates $2,741m W&F Hewlett $623m Ford $282m Susan Thompson Buffet $187m D&L Packard $123m G&B Moore $115m J&C MacArthur $102m Rockefeller $78m Mellon $61m Carnegie $58m
  • 8.
  • 9. • Very varied from country to country • UK most developed – highest proportion of overseas donors, good research publications • 95,000 foundations across Europe • Top 50 foundations have assets of €88bn • 94% of funds go to organisations in the foundation’s country • International development is the third biggest area of funding interest • EC examining need for a European Foundation Statute
  • 10.
  • 11. • Research very patchy • Emerging foundations in the Middle East, India, China • Most foundations behave like HNWIs – often owned by one philanthropist or their family • Very private – unsolicited bids often unwelcome • Personal networks are the best way in
  • 12. Typical funder structure Headquarters Sectors Countries
  • 13. Effective resource mobilisation Headquarters Sectors Countries
  • 14. Community development • Civil society • Innovation • Inclusiveness • Children’s rights
  • 15. Critical issues to address • Where should we focus our energies? • How ready are we to respond? • What changes will we have to make • Processes • Structures • Skillsets • Personnel
  • 16.
  • 17.
  • 18. • Part funding leads to funding shortfall • Full funding but no allowance for overhead • Funding does not cover full life of project
  • 19. Salaries 50,000 Staff costs 68,750 Direct costs 25,000 Direct costs 25,000 Overhead 10% 7,500 Management 15% 11,250 Total 93,750 Total 93,750
  • 20. Salaries 50,000 On-costs 10% 5,000 Recruitment, training 5,750 Office costs 5,000 Direct support 3,000 Staff Costs 68,750 Still claim % overhead where you can – this is then profit