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Aligning your funding strategy 2022

  1. Funding Strategy Update in 2022 1 December 2021
  2. WHAT Chris Meyer zu Natrup Managing Director We build better NGOs We help NGOs to be funded better Hello...
  3. Alignment to donors? VS. Portfolio management!
  4. 1. What not to align a. Your mission statement and values b. Your personality as an organisation & team c. What you will, and will not, do 2. Activities vs Mission match? No donor matches your mission, but many of your activities 3. Searching for donors for current programmes is less efficient. -> Search for future ones. 4. Look beyond the usual suspects Some thoughts...
  5. 1. Donor mapping: lead by activities, then by country 2. Most funding is not grants 3. Three basic steps a. Compose ideal funding portofolio b. Plan roadmap c. Execute with metrics 1. What activities produce the results that achieve your organisation’s objectives? 2. What type of funding do you need to perform these activities better than anyone else? (funding type should enhance your UVP - Unique Value Proposition) Before you start Kick off strong into 2022
  6. Funding trends in 2022 - selected institutional donors
  7. 1. Go fast Average bidding time now 28 days 2. Go local, seriously a. USAID aims 25% (currently 6%) goes to local organisationy by 2024. 50% by 2030 b. SA, Kenya, Nigeria, TZ, Ethiopia lead in localisation c. Health & Democracy focus 3. Go green, now ($80b in 2019 to $118b in 2025) a. Germany ($8.5n in 2019) b. Japan ($6.3b in 2019) c. EU ($5.6b in 2019) d. France, UK, USA 4. Go for health, gender & education
  8. General global funding trends ODA 2018 - 2020 Growth decrease % top 3 UK Netherlands Italy ODA 2020 rank volume USD Top 5 US Germany UK Japan France ● Quantitative analyses showed that in the past ODA tended to be pro-cyclical. ● During the current pandemic, the response of the largest bilateral and multilateral donors has not been as bad as often portrayed. ● Even where donors maintain their 2019 ODA:GNI ratio until 2021, i.e. do not cut their aid budgets more than the fall in their GNI, the projected decline in aid over the coming period will be reasonably contained. Decline between 2.5% and 2.9%, depending on growth forecasts. ● However, if the relationship between donor countries’ ODA and economic growth is not linear, we expect ODA to remain overall constant or slightly increase. ● Landscape changes completely ODA 2018 - 2020 Growth increase % top 3 Germany France Norway
  9. ● Increased focus in East Africa (Ethiopia and Kenya); Afghanistan; Jordan; 2 quarters of record investment in LatAm & Carib ● Majority health and health systems (Global HIV, Malaria, TB) (Huge increase in Ethiopia) ● Program management (including for cyber security, research and medical institutions, supply chain) ● Education (Huge investment in Kenya, some in Nigeria, Senegal) ● Democracy & Human Rights (Latin Am, Eastern Europe, Afghanistan, Jordan) Recent strategic shifts: ● Biden focussing on COVID response, climate (Ag, Resilience and Energy), democratic reforms and conflict-affected states ● Much less focus on trade and economic growth than recent years ● Future focus on gender (has appointed a new role, rescinded the Mexico City Policy (global gag rule for SRHR), new funding for women’s empowerment, education and health ● Aiming for countries to be self-reliant 9 US - USAID and DoS
  10. ● Europe and neighbourhood see NDICI - Global Europe for 2021-2027 priorities: 1) Human development, 2) Social inclusion, 3) Gender equality, 4) Climate change, 5) Environmental protection, and 6) Migration-related actions) ● Africa partnership Roadmap to cooperation with Africa including priorities: 1) green transition and energy access; 2) digital transformation; 3) sustainable growth and jobs; 4) peace and governance; and 5) migration and mobility ● Still a long term partner to LatAm countries Priorities: 1) innovative cooperation approaches; 2) reducing disparities between people; 3) sustainable development; 4) climate change; and 5) higher education & research ● Research funding through Horizon 10 EU
  11. Recent strategic shifts: ● Focus on catalysing private investment in health ● Increasing focus on gender mainstreaming throughout programmes ● Continued focus on science, technology and innovation ● Continued focus on climate change (incl food, energy, biodiversity, oceans) ● Decrease in overall funding available due to UK leaving (‘Brexit’) 11 EU Cont’d.
  12. ● Gender equality and women’s empowerment (feminist foreign policy) ● Climate change (Sweden is one of the largest donors to the Green Capital Fund (GCF) and Global Environment Facility (GEF); bilateral ODA focuses on marine resources) ● Democratic governance, human rights, rule of law, and freedom of speech (‘Drive for Democracy’ initiative from November 2019) ● Conflict prevention and humanitarian assistance (needs based) The current government’s commitment to the 1% ODA-to-GNI standard remains, despite mounting pressure from some opposition parties to cut funding levels. Thematic priorities are also expected to remain unchanged. 12 The Swedish International Development Cooperation Agency (SIDA)
  13. Recent strategic shifts: ● Refugee costs down from 34% of total ODA in 2015 to 3% of the total ODA budget in 2021 ● Humanitarian assistance (the second-largest spending area of Sweden's bilateral ODA in 2019) remains a growing funding area for Sweden, with a particular focus on conflict-affected areas ● Democratic governance and human rights are funding priorities, especially in light of the pandemic (increased funding to Asia, Pacific Region and Southern Africa) ● Continued focus on low-income countries and countries in sub-Saharan Africa (esp. Somalia, Mozambique, Ethiopia) and low-income countries (e.g. Afghanistan and Syrian Arab Republic) ● Still a strong supporter of the UN, especially the 'women, peace and security' agenda (40% of Sweden's core contributions to multilaterals in 2019 went to the UN) 13 SIDA - Cont’d
  14. ● New 2030 strategy for the next nine years aiming to increase its efficiency as well as strengthen and systematize the development, sharing, and use of research-based knowledge in Norad. ● The new 2030 strategy focuses how to effectively achieve the UN Sustainable Development Goals (SDGs). Norad plans to disburse funding more strategically, and its overall goal is that the budget will function as a strategic tool for eliminating poverty, slow down the nature and climate crises, and combat various forms of inequality. 14 NORAD (Norway) Logo here
  15. Recent strategic shifts: ● boost innovation in development assistance, creating a culture that is conducive to testing out new ideas and expanding on existing good ones. ● Norad's Director, Bård Vegar Solhjell, said that to improve efficiency, Norad would likely want to make fewer, larger agreements. ● Sectors likely to win support - digital public goods — such as digital learning materials, improved access to weather and health information, and cash transfers — as well as more transparent and efficient tax and fishing systems. 15 NORAD (Norway) Logo here
  16. ● Strengthening the status and rights of women and girls, with an emphasis on sexual and reproductive health and rights. ● Sustainable economies and decent work, with an emphasis on innovations and the role of women in the economy and female entrepreneurship. ● Education, peaceful and democratic societies, with an emphasis on equitable quality education, improved tax systems and support for democracy and the rule of law. ● Climate change and natural resources, with an emphasis on strengthening adaptation alongside mitigation of climate change, food security and water, meteorology and disaster risk reduction, forests, energy and safeguarding biodiversity 16 FORMIN (Finland)
  17. ● Flight and migration, through the special initiative ‘Tackling root causes of displacement, stabilizing host regions, supporting refugees’, BMZ allocated €475 million (US$532 million) for this issue in 2021 ● Climate change and renewable energy, with a pledge of €1.5 billion (US$1.7 billion) to the Green Climate Fund (2020 to 2023); On 29 April, the GIZ became the first bilateral development cooperation organisation in the world to be welcomed as an institutional member of the NDC Partnership ● Agriculture and food security, e.g., through BMZ’s special initiative ‘ONE WORLD - No Hunger’ with €525 million (US$588 million) in 2021 ● Pandemic Preparedness and One Health is becoming a strengthened focus in response to the COVID-19 pandemic ● The German government focus remains on the African continent focused on fostering private investment and good governance and is advocating for a concerted EU-Africa Policy at the EU level. (Marshall Plan for Africa) 17 Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH
  18. Recent strategic shifts: • No major impact from elections • However, May 2020 launch of the BMZ 2030 strategy valid beyond the current legislative term. Aimed to reform German development policy and concentrate its efforts on five key areas which should transcend legislative periods: a. Peace and societal cohesion b. ONE WORLD - No hunger, c. vocational training/ jobs, d. climate/energy, e. environmental protection and natural resources management; 18 GIZ - Cont’d
  19. Recent strategic shifts: • Reduction of bilateral partner countries from 85 to 60 • In 2022, Germany will assume the G7 Presidency. Pandemic preparedness and prevention, as well as health systems strengthening, are planned to be among Germany’s key priorities. • In October of 2020, Germany adopted a new cross-ministerial global health strategy for 2020-2030, titled ’Responsibility – Innovation – Partnership: Shaping global health together’ to serve as the basis for Germany’s engagement in global health and SDG 3 • In response to the COVID-19 pandemic, the German government has expanded its focus on global health and pandemic preparedness. The BMZ established the ‘Global Health: Pandemic prevention, one health’ sub-department and published a ‘One Health Strategy’ in November 2020. 19 GIZ - Cont’d
  20. ● Foundations alliance (green energy alliance) ● Banks and DFIs as well as VCs ● Corporate purpose & partnership expenditure expected to triple by 2023
  21. Training now free MzN will make all services to non-profit organisations subsidised and free of charge by 2030. Training already is free of charge. Check out our blog and upcoming events on our website: Merging an NGO – Experience and Reality 9 December, 2-3 pm Agile and Robustly Funded: NGOs and International Organizations Need New Ways to Survive and Thrive 12 January, 2-3 pm How can my (non-environmental) NGO help in the fight against climate change? – Part 2 Latest blog article: Upcoming webinars: