Broad update on Institutional Funding Opportunities What are their priorities and strategies? What does that mean for funding strategies? What to do now?

1. WEBINAR:
INSTITUTIONAL FUNDING and FUNDING MODELS
DURING & AFTER COVID-19
JULY 9,2020 12pm – 1pm CEST
A look at funding opportunities and funding
strategies during & after the Covid-19 pandemic

2. TALKING POINTS TODAY
Broad update on Institutional Funding Opportunities
What are their priorities and strategies?
What does that mean for funding strategies?
What to do now?

3. Christian Meyer
zu Natrup
Managing Director
EU & Germany
Michael Short
Senior Consultant
USA
TEAM
Pallu Modi
Non-Profit Strategy
Consultant
UK
Joseph Nelson
Non-Profit Finance
Consultant
UN & Worldbank

4. COVID-19 FUNDING OVERALL
Health
55%
Inclusive
Development
19%
other
26%
WHAT
Bi-lateral
Government Notices
22%
World-Bank
18%
Private Sector
15%
Foundations
13%
EU
11%
US
8%
other
13%
WHO
East Asia &
Pacific
16%
West Africa
14%
South Asia
10%
North
Africa
Middle
East
10%
Other
50%
WHERE
Source: UK Dev-tracker, IATA and Word Bank, analysis by MzN International

5. UK development and aid funding
DFID merger with FCO is concerning for the world’s poorest, as a merger risks putting the UK aid budget in
the hands of those with little expertise in global health systems, humanitarian response, reducing
poverty and disease prevention
Changing profile of UK aid - government has clearly signalled its intention to use the aid programme to
pursue direct UK national interests, in particular, by helping to position the UK as a key trade and investment
partner with frontier economies
As BOND also communicated, The new Foreign, Commonwealth and Development Office (FCDO) must take
measures to ensure UK commitments to the 2030 Sustainable Development Agenda and leaving no one
behind are not jeopardised by the DFID-FCO merger

6. WHAT does that mean for us?
Assume short-term focus on humanitarian and health sectors and the vulnerable & longer-
term focus on economic recovery and growth and therefore continue to look for DFID/ FCO
opportunities
ODAPS (Official Development Assistance Programme Services Framework Agreement)
covers all of HMG and is continuing
Try to foresee potential opportunities within current contracts - try to keep these as
relevant as possible
LONG TERM: UK aid funding is reducing. Reduce dependency on HMG funding by
diversifying your revenue sources
Continue to network and leverage from current contracts/ relationships. INGOs have the
greatest reach that donors, consulting firms and foundations do not have

7. 17/18 July: largest budget ever (2021-2027) of EUR 1,100 billion + EUR 750 billion of
Covid funding (NGEU) until 2024 to be decided
Total foreign budget of EUR 118 bil. Under “Europe and the world” to include:
EUR 75.5 billion for development fund “Neighborhood, Development and
International Cooperation Initiatives (NDICI)” + 10.5 billion from NGEU (2024)
EUR 9,76 billion for humanitarian aid + 5 billion from NGEU (2024)
EEF (financing Cotonou) will be merged with NDICI
Expect new Framework and Contract issues from September – get ready
now!
EU RESPONSE – the figures

8. Largest new topic: Private sector support using credit- guarantee or blended
instruments via EFSD+
Up to 80% focused on neighborhood countries and Africa
There should be some “flagship-initiatives” including super programmes- topics
to be decided in August & September
Commission starts “Team Europe” initiative to closer align and jointly
programme development and aid with member countries
Other topics that may form a priority on the development agenda are
Digitalization
Green Deal
Migration
Business climate & Society
Youth Employment
95% of the funds to be used according to ODA guidelines
Private sector support closely aligned with green and human rights
EU RESPONSE – the topics

9. EU
RESPONSE
WHAT THE EU RESPONSE MEANS FOR UK NGO’S
EU funds are largely untied, though not
always pragmatically so. Consider applying
with an EU partner organisation.
Obtain weekly information from the NDICI
commission group for early pipeline
information either through contacts,
outsourced donor intelligence or staff
NGEU funds are quickly paying out – are
your beneficiaries affected?

10. GERMAN RESPONSE. -
CONTINUES FOCUS ON MARSHAL PLAN
AND COMPACT FOR /
WITH AFRICA WITH KEY PRIORITIES IN:
Youth entrepreneurship
Agriculture
Anti-corruption
Private investment support & investment climate
improvement
Current projects are being refocussed on health
Combating fake news
Digital vocational training
Health sector strengthening squads
All announced in English here

11. WHAT HAVE THE INTERNATIONAL FINANCE INSTITUTIONS DOING TO
FACILITATE PROGRAMMES DURING THE COVID 19 PANDEMIC?
UN, World Bank, IFC, Foundations and others
Increase in Funding – 1500 New COVID Initiatives totaling $16 trillion - The funds have not
all hit the ground in the speed that was intended.
Flexibility and Re-assignment – 20% of Development Funding Has Be Repurposed So far and
the donors are continuing to discuss and negotiate that amount going forward.
Various UN Bodies have continued funding programme costs, salaries and even in some
cases ICR
Each stress that they intend their pipeline of no COVID projects to be maintained if not
increased but they acknowledge for a range of reasons there may be delayed.
Procurement Contracts have rapidly increased – NGOs with distribution networks have
opportunities to facilitate the supply chains
Philanthropists and Private Foundations are growing increasingly active in the funding of
both research and response.

12. USAID (US DEPT. OF STATE) – the figures
COMMITTED US$ 12.5 BILLION TO THE GLOBAL COVID-19 RESPONSE
- INCLUDING US$ 1.3 BILLION THROUGH USAID AND THE US DEPARMENT OF STATE, INCLUDING:
ü + US$ 428 million - USAID’s Global Health Emergency Reserve Fund
ü + US$ 538 million - USAID’s International Disaster Assistance (IDA) account
ü + US $206 million - Economic Support Fund (ESF)
ü + US $191 million - Migration and Refugee Assistance (MRA)

13. LESSONS from US Funding
Funding flow is accelerating… BUT
Much of the funding is not new
Uncertain how much will go to smaller
front-line NGOs
Likely to be channeled through the largest
USAID contractors as “top offs” – consider
building a consortium here.
Uncertain future funding/policies
>> 2021 Budget under debate
>> US aid is increasingly political
>> Move to split off Global Health to State
>> 2020 Election
Our Recommendations :
CLOSE OBSERVATION
Obtain weekly update on upcoming funding
opportunities as relevant to you via staff,
contracted consultants or contacts
GET READY!
Complete no-cost NGO registration
with SAM.gov
NETWORK!
USAID country offices, local NGOs/
Government committees, UN agencies

14. 1. Diversification of funding and revenue streams.
Scenario and acid test your incoming resources
every 3-4 months.
2. Set minimum funding level, by type (not just
overall)
3. Prioritise funding types that need to grow
strategically as result of above analysis
A strong Funding function is the basis for Impact delivrery

15. 6. Have a clear, digital first, workflow to find and
assess opportunities
7. Add surge capacity to your proposal writing team
8. Understand income development as a key part of
business as usual not something to be done ad hoc
9. Identify your products and think of them as revenue
carriers for your mission to identify other income
sources
A strong Funding function is the basis for Impact delivrery

16. THANK YOU!
ANY QUESTIONS?
Facing uncertainty TOGETHER
BOND working group can help: https://www.bond.org.uk/hubs/funding-opportunities
Contact us for individual advice & support:
www.mzninternational.com

17. STAY IN TOUCH!
Joseph Nelson
joseph@mzninternational.com
Christian Meyer zu Natrup
chris@mzninternational.com
Pallu Modi
pallu@mzninternational.com
Michael Short
michael@mzninternational.com
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Covid-19 pandemic here
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