Unravelling the community of Donors-Multilaterals and Bilaterals Moses

Unravelling the community of Donors-Multilaterals and Bilaterals Moses Chege

Multilaterals and Bilaterals l l l l Who are they? What do they mean to us in CSO? What Interest are they to us Budget support versus CSO Support. Policy engagement /influence Motivation of funder- lasting change Long term partnerships

Multilateral donors l l l In Africa opportunities about Multilateral donors still remains very opaque with few CSO engaging them. UN System –discuss World Bank-discuss European Commission-discuss African Development Bank-discuss Others- Asian Development Bank European Bank of Reconstruction and Dev and Inter American Development Group Source: World Bank

Bilateral l Bilateral offer support to development agencies of individual countries to better coordinate aid and to more effectively achieve development goals. l Mainly funding is also tied to colonial links –i. e. Kenya with Britain, Mozambique-Portugal, Francophone Africa with France etc. l A lot of literature on whether AIDS works or not , but a debate for another session. l A number of organisation not taking bilateral aid i. e Ashoka, Amnesty –What do you think?

Key Bilaterals-what do we know of them l l l l l A list of some bilaterals Australian Agency for International Development (Aus. AID) Austrian Development Agency (ADA) Canadian International Development Agency (CIDA) Danish Development Agency (DANIDA) Dep't for Int'l Development Cooperation (Finland) Agence francaise de developpement (Af. D) Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) Gmb. H Ireland Aid Japan Bank for International Cooperation (JBIC) Japan International Cooperation Agency (JICA) Netherlands Development Cooperation New Zealand Official Development Assistance (NZODA) Norwegian Agency for Development Cooperation Swedish International Development Cooperation Agency (SIDA) U. K. Department for International Development (DFID) -UKAid U. S. Agency for International Development (USAID) Source: World Bank

Information on Bilaterals and Multilaterals l l l l Country strategy papers -CAP Regional Strategy papers-EC , DFID Open day meetings –EC, USAID Calls for proposal on websites –EC, USAID and DFID Networking sessions-KAFP Annual Reports of other organisations. Government reports and documents-Finance, Health

Key cross cutting issues l l l Climate change /Enviroment HIV /AIDS Gender –women and children Vulnerable and marginalised Empowerment/capacity building of beneficiaries Promotion and protection of human rights

Now More than ever before l l The World Bank -developing countries face a $270 -700 billion financing due to financial crisis. As a result in 2009 some 59 million people could lose their jobs. 200 million will be added to the ranks of the 1. 3 billion of those working but living on less than $2 a day. Also some 53 million could be driven into absolute poverty. Source: SOLIDAR

Where we are l United Nations foreign direct investment has decreased by 20% in 2008 (UN) l The collapse of commodity prices - exports decreases in export revenue. l Remittances-migrant workers losing jobs

What has happened l In Kenya, remittances were down 27% in January 2009, compared to January 2008. l Aid to Uganda fell in 2008.

Fundraise More? l In 2009 - just 27 percent of fundraisers believe their organizations will raise more money this year than in 2008. l About one-third of respondents (36 percent) estimate they will raise less in 2009. l Thirty-seven percent predict they will raise roughly the same amount in 2009 as they did in 2008. l That level of optimism is the lowest by far in the history of the survey Source : Management Centre and Foundation Centre

Fundraise More l Irish Aid cuts , DFID? ? ? EC? ? ? USAID? ? l How have our donors reacted? l What are our challenges?

Wait a minute l Development aid was at its highest level ever in 2008. l In 2008, official development assistance rose by 10. 2% in real terms to USD 119. 8 billion. l This is the highest dollar figure ever recorded. It represents 0. 30% of members’ combined gross national income.

Bad Economy? ? ? l The economy is never the problem. Fear of the economy is the problem.

Trends On a gross basis The largest donors of gross ODA were l United States (USD 26. 9 billion), l Japan (USD 17. 4 billion), l Germany (USD 15. 9 billion), l France (USD 12. 4 billion) and l United Kingdom (USD 11. 8 billion) Five countries exceeded the United Nations target of 0. 7% of GNI: l l l Denmark, Luxembourg, the Netherlands, Norway and Sweden

The Paris Declaration l Endorsed on 2 March 2005 l An international agreement to which over one hundred Ministers, Heads of Agencies and other Senior Officials adhered and committed their countries and organisations. l Aims at increasing efforts in harmonisation, alignment and managing aid for results with a set of monitorable actions and indicators.

Joint progress toward enhanced Aid Effectiveness l Ownership - Developing countries set their own strategies for poverty reduction, improve their institutions and tackle corruption. l Alignment - Donor countries align behind these objectives and use local systems. l l l Harmonisation - Donor countries coordinate, simplify procedures and share information to avoid duplication. Results - Developing countries and donors shift focus to development results and results get measured. Mutual Accountability- Donors and partners are accountable for development results.

The Accra Agenda for Action (AAA) l Drawn up in 2008 l It builds on the commitments agreed in the Paris Declaration.

An Agenda to Accelerate Progress l Predictability – donors will provide 3 -5 year forward information on their planned aid to partner countries. l Country Systems– partner country systems will be used to deliver aid as the first option, rather than donor systems. l l Conditionality– donors will switch from reliance on prescriptive conditions about how and when aid money is spent to conditions based on the developing country’s own development objectives. Untying– donors will relax restrictions that prevent developing countries from buying the goods and services they need from whomever and wherever they can get the best quality at the lowest price.

Engaging Multilaterals l There are many ways to ask a bilateral or a multilateral donor for money. l Unfortunately there as many different ways of being turned down. l AIDA concept

Four Stages l Stage One: Identification and evaluation Stage Two: Raising awareness Stage Three: Exploring the opportunities l Stage Four: Making the agreement l l

Stage One: Identification and evaluation l l l Does the funder support the activities you want funded? Can they give you the funding you need? Are they accepting applications? 4 P’s-Policies, priorities, procedure , priority Added value /additionality

Stage Two: Raising awareness l l l The funder needs to be made aware of your organization's existence, its aims and capabilities. Feedback to country strategies Visits to donors Attending key meetings Issuing position papers and policy Advocacy versus service delivery

Everything you present must pivot around that point. l l Present a case that establishes that your organization is well grounded and well run is extremely important. Whenever possible, give the project benefit a face.

Telling your story l l l Not telling your story really well is not the problem. Not clearly defining the benefit of the project is the problem. In your efforts to present your story in the best possible way, don’t lose sight of the most crucial element: How is your organisation changing things as a result of it’s work

Right Person l l Not having just the right person to contact a donor is not the problem. Not making any contact at all is the problem. In a perfect world, we would always have exactly what and who we need to cultivate the donor. But our imperfect world often requires that we do the best we can with what we have. If you never ask, you can’t possibly get a yes.

Not keeping the donor at all is the problem. l l Not getting more funding from the donor is not the problem. Not keeping the donor at all is the problem. It is also important to note that donor could become more interested/fatigued of a non profit with time.

Stage Three: Exploring the opportunities l l l Exchange between the funder and your organisation over their respective needs. Funders have needs too! What motivates funders?

Opportunities l Contact does not have to be based on a long standing or elaborate connection to be successful. l When there is an opportunity to meet with a potential donor, take it. Make the contact! l

Stage Four: Making the agreement l This should be the easiest stage. l Failure at this stage is usually due to hidden flaws earlier on l Essentially, a refusal should be regarded as an opportunity to further develop your relationship with the funder. l Whatever the conclusion of these four stages, at the end of the process you need to start again at Stage One. l You are either aiming to be successful next time or you need to start preparing the donor for a larger request.

Follow Through l l l Very aggressive and thorough when it comes to submitting their grant applications, But when it comes to final reports they are lax narrative repots and financial reports that are key to the decision to award future grants. Many of us do not take advantage of the report as a critical fundraising tool. ” Donors are under enormous pressure to demonstrate to their own governments that the money given away is being used effectively.

The Tough Phone Call l Keeping funders in the loop about hiccups and setbacks. l Open communication is vital. l Fundraising is still about people—even when you are dealing with a bureaucracy

Do your homework before calling l l l Go to the website and read the information about the kinds of projects the donor funds and its Overall funding approach. It’s important to make sure calls make the best use of time for both parties.

Cultivation = Information l l make good use of time with face-to-face meetings and visits to the grant recipient organization. Cultivate relationships with people Don’t court the officers like they are wealthy givers Meeting people to learn about the work we do, and ideally to meet the people who are being served by the funding.

Recognition counts l Be innovative in this l Compliance where it is a contractual obligations.

Donor Recognition: Thinking Like a Donor l Know the interests and motivation of your donors

Thank You