global trends

Foundation grant-making

• USA • Europe • The rest of the world

• Real foundations • Corporate foundations • Vehicles for philanthropy

• Outcomes – impact • Excellent monitoring and evaluation • Direct to the South • Sustainability • Seedcorn – innovation – clear exit strategies • Scalability

• Research • Timing for applications • Cultivate where possible • Field and HQ • Follow guidelines • Don’t waste their time • Project quality – reporting quality • Timing for reports • Do the unexpected extra • It’s not the first grant that counts – it’s securing the

second grant

• Independent foundations • Corporate foundations • Community foundations

$33 billion estimated giving by independent foundations in 2008

International – US-based recipients 15%

International – Overseas recipients 9%

Domestic 76%

B&M Gates $2,741m W&F Hewlett $623m Ford $282m Susan Thompson Buffet $187m D&L Packard $123m G&B Moore $115m J&C MacArthur $102m Rockefeller $78m Mellon $61m Carnegie $58m

• Very varied from country to country • UK most developed – highest proportion of overseas

donors, good research publications • 95,000 foundations across Europe • Top 50 foundations have assets of €88bn • 94% of funds go to organisations in the foundation’s

country • International development is the third biggest area of

funding interest • EC examining need for a European Foundation Statute

• Research very patchy • Emerging foundations in the Middle East, India, China • Most foundations behave like HNWIs – often owned

by one philanthropist or their family • Very private – unsolicited bids often unwelcome • Personal networks are the best way in

Typical funder structure

Headquarters

Sectors

Countries

Effective resource mobilisation

Headquarters

Sectors

Countries

• Community development • Civil society • Innovation • Inclusiveness • Children’s rights

• Critical issues to address • Where should we focus our energies? • How ready are we to respond? • What changes will we have to make

• Processes • Structures • Skillsets • Personnel

• Part funding leads to funding shortfall • Full funding but no allowance for

overhead • Funding does not cover full life of project

Salaries 50,000 Direct costs 25,000 Overhead 10% 7,500 Management 15% 11,250 Total 93,750

Staff costs 68,750 Direct costs 25,000 Total 93,750

Salaries 50,000 On-costs 10% 5,000 Recruitment, training 5,750 Office costs 5,000 Direct support 3,000 Staff Costs 68,750

Still claim % overhead where you can – this is then profit