The document proposes the Diaspora Collaborative Fund, which would target expatriates from a specific country and allow them to donate amounts from $1,000-$100,000. The funds would be invested and only the returns donated to development projects in the home country. A website would connect donors to select projects vetted by local experts, and donors could discuss projects directly with locals. The fund aims to leverage diaspora financing and expertise, promote accountability through transparency and a "refund" policy, and pilot the concept with a Tunisia-focused fund invested in social enterprises and financial markets for maximum impact.

1. Diaspora Collaborative FundThe Impact Challenge ProposalHatemMahbouli(hm289@georgetown.edu)Suhail AhmadAshley Silverio

2. BackgroundIndividuals can donate to a friend’s cause or renowned non-profit. They can also donate to support projects in their home country.There is huge potential among expatriates all around the world: they are often educated people with good status coming from low income countries that need investment and donations Country-specific programs can strongly motivate the diaspora of each individual countryDiaspora awareness and money can be leveraged to help communities in their home countries. Expatriates know theirnation’s development priorities better than others.

3. The Diaspora Collaborative Fund:The Concept (1)The fund will target expatriates from one specific country The participants will agree to put amounts in the fund from $1000 to $100000In aggregate these funds constitute a sustainable financial asset to generate returnOnly the returns are donated to finance development projects in the home country. Initial donations remain within the fund.

4. The Diaspora Collaborative Fund:The Concept (2)The funds raised through the diaspora participations can be invested in: return generating projects in the concerned country (social enterprises)Social impact investments in financial marketsThe return on investment is distributed to development projects or as grants for local entrepreneurs

5. Collaborative Fund(Web Platform)Impact Finance+Social EnterprisesinvestingDonating returns on investmentsThe Diaspora Collaborative Fund – Example of Tunisia

6. Reducing Transactions CostsThe Diaspora will be reached through associations, embassies , banks and media outlets that target this specific community.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

7. Value-driven AllocationsProjects to be financed are proposed by organizations that are active in that country The fund selects the most valuable and displays them on the websiteClear metrics will be displayed to guide the donor’s choice: Budget of the project/timeline/number of beneficiaries…Participants vote for the appropriate project to be financedExperts 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 donors. The donor-investor not only gives financial support to his country but also discusses and receives direct feedbacks from his compatriots

8. Donors/Social InvestorsVoteProject 1Project 2Project 3Project 4Project 5VoteLocals and future recipients

9. Transparency and “Refund” PolicyThe participant commits to maintain his participation in the fund for at least three years so it can be appropriately investedIn 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 fundThe fund is therefore incentivized tosupport efficient projects

10. Innovative ideasThid project contains many new ideas that can be applied to other initiatives:Developing a fund and only donating it’s returns

11. Targeting a specific country so we can leverage the tremendous diasporas financial potential and their country-related ideas and networks

12. Enable the future beneficiaries to promote their projects and discuss directly with the donors

13. The “refund policy” to achieve efficiency and promote accountabilityAppendix: The Tunisian PilotLocal fund in local currencyTounesna-Fund.org*International Maghreb Merchant Bank**Tunisians abroadTunisiaNGOsPADIL Development services**CooperativesLocal development partner *website in process** contacts already made