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Diaspora Funding

Cathy Pharoah was a panellist in the session on the 'Development Impact of Diaspora Organisations' at the Africa UK Diaspora Funding Conference

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Diaspora Funding

  1. 1. Growing interest –private/ diaspora philanthropy in aid International Development Committee publishes report on private foundations 20 January 2012 Private philanthropy is improving the lives of some of the worlds Migrant remittances and poorest people, but the Department for International charitable donations Development (DFID) must do more to engage private foundations in coordinated global efforts to improve the effectiveness of aid. Tom McKenzie and Cathy Pharoah 23 March 2012 While private foundations make a huge contribution, concerns have been raised about the transparency and accountability……. foundations should sign ……be brought into global structures to ensure that they coordinate their work with other donors.
  2. 2. Philanthropic funding for aid in financial perspective Type of financial support Amount Source billion UK private international giving £1.0 Pharoah, 2011 Global Grant-making, 2011 UK Remittances £2.4 The Migration Observatory, 2009 University of Oxford, 2011 UK ODA 2010 £7.4 DFID, SID, 2010 All DAC country philanthropy $56 Hudson Institute (2012) 2010 Index of Global Philanthropy and Remittances All DAC country remittances $190 2010 All DAC countries ODA $575 2010
  3. 3. Foundations’ international grant-making- new researchRationale for research: growing interest, highlight profile, stimulate more supportInternational funding: hugely challenging for foundationsData sources: audited annual reports and accounts / directories / interviewsDefining international development – not all see their international work as ID ‘activities in developing countries /emerging economies including growth, governance, health, education, gender, disaster relief, humanitarian aid, infrastructure, rights, economic/environmental sustainability, research’Criteria: spending >£50k per annum on ID, manageability, majority by value, heavy skewAttempt at reliability, but foundations vary in year-ends and published detail, so some estimationGlobal Grant-making,
  4. 4. Scale of UK foundation global grantmaking Foundations All % which fund foundations internationallyTotalgrantmaking £2.3 billion £3.1 billion 74%International developmentgrantmaking £290 million £290 million -International dev’t grantsas % of total grantmaking 13% 9% -Range of internationalgrants as % of grantmaking 1% - 100% - -Global Grantmaking,
  5. 5. Regional distribution of foundations’ international grants Total UK Bilateral Gross Public Expenditure % UK Foundations Number* % Africa 44.21 58 37 Asia 29.16 36 23 Americas 1.74 20 13 Pacific 0.05 2 1 Europe 0.56 13 8 Developing countries (general) 28 18 Total 75 ? 157 100 Global Grant-making,
  6. 6. Health - direct services 12 Education - form al 12 General social w elfare 11 Sustainable econom ic and agricultural developm ent 10 Utilities & infrastructure 9 Philanthropy, civil society & capacity-building 7 Environm ent - conservation 7 Professional training & skills developm ent 7 Disaster and em ergency 6 Personal social care 6 Health - prevention & education 4 Law , advocacy and rights 3 Education - inform al 2 International peace and security 2 Health, biom edical, scientific & other research 2Global Grant-making, 0 2 4 6 8 10 12 14 Percentage of trust who fund each subject area
  7. 7. Issues for foundations in international fundingInherently complex and challengingglobal political, economic, religious, cultural, ethnic, environmental dimensionsidentification of needlocal politics and grassroots realities on the ground/ changing canvasRole of foundations in the funding ecologywhat is the ‘ecology’ of current ID funding, and where is the place of diaspora philanthropy?where does this ‘ecology’ work effectively/ ineffectively?does foundation funding have a special place, how make best use of limited resources?how should foundations balance funding to INGO, diaspora groups, local agencies?How do foundations articulate the challenges, develop strategy?growing partnering – how are partners chosen?access to information/ expertise – how to develop this? how to increase impact?
  8. 8. Developing partnerships – some emerging examplesPaul Hamlyn Foundation India Programme strategyPHF has supported NGOs in India since 1087, but recently reviewed whether it should continueto work there, and how it could make a differenceIt concluded that despite high economic growth and aid, India remains a poor country withsignificant regional imbalanceswomen, scheduled castes and tribes face persistent barriers to developmentcommercialisation has driven the rural poor from their landWith a vibrant NGO sector, and recent legislation to devolve power to villages (the PanchayatiRaj Act) PHF aims to provide support at three levels: building development sector capacity,increasing access of vulnerable communities to basic services, policy developmentAs a project working at all three levels, PHF funds the National Institute of Women, Child andYouth Development (NWCYD) to run short-stay facilities for runaway girls at train stations inBhopal, Itarsi and Katni. NWCYD works through the ‘panchayat’, elected local representativecouncils.
  9. 9. New kinds of investment and partnersThe Baring Foundation - mission-connected investment in Equity for Africa, a fund providing’transition investing’ for small and medium-sized micro-entrepreneurs in Sub-Saharan Africaaiming to build their business to the next level.The Ashmore Foundation – social enterprise as a sustainable approach to building skills andincome in marginalised communities, and is building primary health care enterprise in Ghana.Supports the AfriKids Medical Centre to provide basic health services to the community ofBolgatanga, with ambitious plans to grow. The Foundation has funded a permanent x-ray suiteboth to improve local access to healthcare and provide a sustainable revenue for the Centre.Gatsby Charitable Foundation and Wood Family Trust – joint funding partnership to workwith tea industry stakeholders in Tanzania to launch the Chai Project. Its aims are to doublesmall-holder production, increase productivity and incomes, and enhance the competitiveness ofthe smallholder tea farmer. Research has analysed input supply to end market –what opportunities exist for expanding production and increasing productivity?an industry benchmarking of competitiveness and cost structure of Tanzania’s tea sector.Support through technical assistance, matching grants, loans, equity, other commercial
  10. 10. Major preventive programmes – government partnersChildren’s Investment Fund FoundationFew independent funders, apart from Bill and Melinda Gates Foundation, have resources forlarge-scale preventive public health and education programmes with government andinternational agency partnersIn the UK CIFF has invested + £18 million in child survival in 2009/2010, with a particular focuson malaria, AIDS, and educational development.It aims to help eliminate paediatric HIV/AIDS in Zimbabwe, supporting the government’s workthrough a major grant to the Elizabeth Glaser Paediatric Aids Foundation.Through a ‘Teacher-Community Assistant Initiative (TCAI) in Ghana, the Foundation isworking with the government to improve education outcomes for primary school children,aiming to rollout TCAI across 13,000 schools.
  11. 11. Globalism in corporate partneringModern business links continue to be highly important in defining areas of foundation interest:the Ashdown Foundation, which is funded through donations from Ashdown Capitalemployee bonuses, supports projects in Emerging Market countriesthe Innocent Foundation supports activities in the countries from which the fruit they use issourced.Successful international entrepreneurs want to give back to their countries of origin, includingCentral and Eastern Europe:the Khodorkovsky Foundation supports higher education amongst young Russiansthe Kusuma Trust UK, founded by Anurag Dikshit, aims to strengthen secondary and tertiaryeducational achievement in India.
  12. 12. Trans-national activities with local partnersWellcome Trust - Mahidol University- Oxford Tropical Medicine Research ProgrammeThis initiative is part of the Wellcome Trusts south-east Asia Major Overseas Programme, inThailand, and was established in 1979 by Mahidol University in Bangkok, and the University ofOxford.Its field research extends across Thailand, and provides healthcare to refugee and displacedcommunities along the Thai-Myanmar border, and to other communities. It has clinical researchcollaborations with groups in Bangladesh, Cambodia and India, as well as a number of Africancountries.The Programme employs around 370 people, over 90 per cent of whom are local staff. It hasachieved international recognition for its excellence in tropical disease research and researchtraining and career development track from MSc to postdoctoral training, to develop researchleaders both locally and internationally.
  13. 13. Working through INGOWaterloo Foundation – keeping girls in educationIn 2009, the Foundation provided Camfed (the campaign for Female Education) with a grant of£100,000 to support the costs of educating 800 girls in south east Tanzania. The grant willprovide targeted support to enable girls to continue in secondary school, when large numbersdrop out of formal education altogether.The support provided by Camfed pays for school fees and accommodation, as well as providingmentorship and general support to improve the quality of learning outcomes at the schools withwhich they partner.A close partnership with district education authorities is maintained to monitor the impact ofprogrammes on drop-out rates and secondary pass rates for all girls in the districts in whichCamfed operates.
  14. 14. Partnerships for sustainable development: some issues Diverse patterns of funder interventions Is impact fragmented? Growing partnering – how are partners chosen? Access to information/ expertise – how to develop this? Stronger role for growing diaspora communities and resources they bring? What could help more holistic ‘joined- up’ approaches to be developed ?