Background Individuals can donate to a friend’s cause or a renown non- profit. They can also donate to support their home country projects. There is a huge potential among the expatriates all around the world: they are often educated people with good status coming from low income countries that need investments and donations A country-specific programs can strongly motivate the Diaspora of this very country Diaspora awareness and money can be leveraged to help communities in their home countries. They also know better about the nation’s development priorities.
The Diaspora Collaborative Fund: The Concept (1)The fund will target the expatriates of one specificcountryThe participants will agree to put amounts in thefund from $1000 to $100000These participations constitute a sustainablefinancial asset to generate returnOnly returns are donated to finance developmentprojects in the home country. Originalparticipations stay in the fund.
The Diaspora Collaborative Fund: The Concept (2)The funds raised through the diasporaparticipations can be invested in: return generating projects in the concerned country (social enterprises) Impact finance marketsThe return on investment is donated fordevelopment projects or as grants for localentrepreneurs
Collaborative Fund (Web Platform) investing Impact Finance + Social Enterprises Donating returns on investmentsThe Diaspora Collaborative Fund – Example of Tunisia
Reducing Transactions Costs The Diaspora will be reached through associations, embassies , banks and the media that target this specific community abroad. 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… The participants vote the appropriate one 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 the 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 keep his participation for at least 3 years in the fund, 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 incented to support efficient projects
Innovative ideas The projects contains many new ideas that can be applied in other initiatives: Gathering a fund and only donating its generated revenue 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 vote the project and to discuss directly with the donors The “refund policy” to achieve efficiency
Appendix: The Tunisian Pilot Local fund in local currencyTunisians Tounesna- Internationalabroad Fund.org* Maghreb Merchant Tunisia Bank** PADIL NGOs Development services** Cooperatives Local development partner *website in process ** contacts already made