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COURSE ON FUNDRAISING

COURSE ON FUNDRAISING. Jürgen Carls University for Peace P.O. Box: 138 – 6100 San José, Costa Rica E-mail: jcarls@upeace.org Tel.: (00506) 205 90 92 San José, Costa Rica. THE DECREASE IN DIRECT GOVERNMENT FUNDING.

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COURSE ON FUNDRAISING

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  1. COURSE ON FUNDRAISING Jürgen Carls University for Peace P.O. Box: 138 – 6100 San José, Costa Rica E-mail: jcarls@upeace.org Tel.: (00506) 205 90 92 San José, Costa Rica

  2. THE DECREASE IN DIRECT GOVERNMENT FUNDING • Direct government donations to national organizations have been reduced in favour of indirect donations, competitive donation programs and donations to development programmes • This tendency is often called “privatization of the public sector” • This prevails in some of the industrialized countries, such as The United Kingdom, The Netherlands, New Zealand and Australia • Little by little this tendency is spreading to other OECD and developing countries

  3. THE NATIONAL BUDGET IS THE BASIS • External sources can never replace basic funds of the national treasure • With regard to the national treasure institutions need to • promote the institution’s reputation at national level • pay attention to the preparation of the annual budget, and • Maintain good personal relationships

  4. TYPES OF DONORS • National donors with public funds • Bilateral donors • Multilateral donors • Donors with private funds

  5. A BILATERAL DONOR • Uses public funds to finance a development programme of another country; usually from government to government, but nowadays many bilateral donors also fund NGOs • The majority of bilateral donors are governments of industrialized countries: f.e.: ACIAR - Australian Center for International Research DCA - Development Cooperation Agency (Belgium)DANIDA – Danish International Development Agency

  6. A MULTILATERAL DONOR • Is a donor agency receiving funds from member countries • The funds come from contributions from each member country f.e.: ADB – African Development Bank AFESC- Arabic Fund for Economic and Social Development ADB – Asian Development Bank EC – European Commission IDB –Interamerican Development Bank WB – World Bank

  7. THE UNITED NATIONS ORGANIZATIONS • Have restricted budgets and make fewer donations than in the past • Carry out research, training and development activities e.g.: FAO – Food and Agriculture Organization UNEP- United Nations Environment Program UNDP– United Nations Development Program

  8. PRIVATE FUNDING SOURCES • Those are foundations of societies financed with the profits of commercial companies or by a donation made by a rich individual or a group of individuals f.e.: Ford Foundation Rockefeller Foundation McArthur Foundation Toyota Foundation Packard Foundation

  9. CGIAR – CONSULTATIVE GROUP ON INTERNATIONAL AGRICULTURAL RESEARCH • Is not a donor agency • Composed of a group of donor members (50) who finance 16 international centers: e.g.: CIAT IITA IFPRI CIMMYT

  10. FUNDING TYPES • Loans • Donations: • basic or non-restricted donations • restricted, or donations for special projects

  11. LOANS • Are financial contributions that have to be payed back • Loans are often “bland” – the interest rate is by far lower than the rate of commercial loans • Often, a respite is given before amortization takes place

  12. DONATIONS • Are financial contributions that need NOT to be payed back • It is expected that these donations have an impact on specific development projects

  13. BASIC OR NON-RESTRICTED DONATIONS (CORE FUNDING) • The beneficiaries (donor receivers) can dispose of the funds for any kind of research or development programme • The beneficiaries can also use the basic donations for acquiring equipment, pay salaries or cover administration costs

  14. RESTRICTED DONATIONS OR DONATIONS FOR SPECIAL PROJECTS • These financial contributions have to be used for specific activities • The donation agreement is based on a convincing project proposal

  15. CALL FOR TENDERS • Donors publish a call for proposals to carry out the project • Competitive funding of development programmes/projects • Are frequently made for the investment or development of a project (road construction, electrical energy plants, dams) • Growing importance for rural development projects

  16. COMPETITIVE DONOR PROGRAMS • The donors like to chose from different proposals • The donor can specify a determined subject (“natural resources development”, “crop improvement”) or a specific geographic area • The donor establishes guidelines, for example with regard to the size of the donation and the prefered length of the project

  17. DONORS ARE INVESTORS • The word “donor” means “giving away”. Nowadays, people prefer the word “investor”. • The word “investor” conveys the impression that the cooperation agency is making a business decision to assign funds for a programme • An investor, by definition, awaits to obtain results of his investment

  18. DO YOU KNOW YOUR DONORS? • Donors have many options when it comes to considering on how to assign their donations • You need to know as much as possible about the donor agency, including its personnel, its objectives, its interests, its policies and its budget • You obtain the information from internet and by personal interaction. Through this interaction you learn about the donor and the donor learns about you

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