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                                         Innovation	
  Fund	
  
                               Post-­‐Webinar	
  Questions	
  &	
  Answers	
  
   	
  

   Revenue Criteria
          1. Can	
  the	
  1/3	
  match	
  be	
  made	
  by	
  the	
  umbrella	
  organization	
  to	
  which	
  the	
  applicant	
  
             is	
  connected?	
  
                    a. Perhaps.	
  	
  If	
  the	
  umbrella	
  generally	
  subsidizes	
  its	
  subsidiary,	
  then	
  such	
  
                       support	
  would	
  not	
  qualify	
  as	
  a	
  match.	
  	
  However,	
  a	
  special	
  allocation	
  from	
  
                       the	
  umbrella	
  to	
  the	
  subsidiary	
  so	
  that	
  the	
  proposed	
  initiative	
  can	
  be	
  
                       executed	
  would	
  qualify.	
  	
  In	
  other	
  words,	
  support	
  needs	
  to	
  be	
  over	
  and	
  
                       above	
  normal	
  transfers	
  and	
  specifically	
  allocated	
  for	
  the	
  proposed	
  
                       project	
  	
  

   Program Content and Geography	
  
          2. We	
  are	
  an	
  international	
  NGO	
  with	
  an	
  office	
  in	
  US.	
  	
  The	
  office	
  was	
  established	
  last	
  
             year	
  but	
  the	
  NGO	
  has	
  been	
  in	
  existence	
  since	
  1995.	
  	
  Are	
  we	
  eligible	
  to	
  apply?	
  	
  
                   a. Yes.	
  	
  The	
  10	
  year	
  requirement	
  is	
  designed	
  to	
  demonstrate	
  continuity	
  in	
  
                       the	
  delivery	
  of	
  program,	
  and	
  not	
  the	
  establishment	
  of	
  the	
  US	
  based	
  
                       nexus.	
  	
  	
  
          3. We	
  are	
  an	
  organization	
  that	
  looks	
  to	
  innovate	
  its	
  funding	
  stream	
  by	
  having	
  the	
  
             government	
  of	
  the	
  country	
  take	
  over	
  the	
  funding	
  many	
  of	
  service	
  delivery	
  costs	
  
             we	
  have	
  historically	
  covered.	
  Is	
  this	
  a	
  viable	
  proposal?	
  
                   a. Generally	
  speaking,	
  we	
  would	
  not	
  consider	
  cost	
  shifting	
  to	
  governments	
  
                       be	
  a	
  viable	
  proposal.	
  	
  That	
  would	
  not	
  be	
  an	
  innovation	
  with	
  a	
  focus	
  on	
  
                       market	
  or	
  quasi-­‐market	
  partnerships	
  for	
  social	
  problem	
  solving	
  at	
  
                       sustained	
  and	
  scalable	
  levels.	
  	
  	
  
          4. Can	
  we	
  use	
  the	
  grants	
  for	
  projects	
  that	
  will	
  improve	
  resource	
  mobilization	
  and	
  
             contribute	
  to	
  sustainable	
  revenue	
  (such	
  as	
  those	
  that	
  raise	
  an	
  organization’s	
  
             visibility	
  or	
  improve	
  efficiency)?	
  	
  
                   a. Simply	
  improving	
  visibility	
  would	
  not	
  qualify.	
  	
  However,	
  improved	
  
                       efficiency	
  gets	
  a	
  “qualified	
  yes.”	
  	
  If	
  by	
  improving	
  efficiency	
  you	
  are	
  freeing	
  




445 DOLLEY MADISON RD., SUITE 208, GREENSBORO, NC 27410• 336-376-7710    MAIN   • 336-851-0410 FAX • innovation@afgg.org EMAIL • www.afgg.org WEB
up	
  resources	
  that	
  will	
  be	
  allocated	
  to	
  diversify	
  revenue	
  then	
  yes.	
  	
  To	
  
                     create,	
  build,	
  or	
  support	
  a	
  nonprofit	
  fundraising	
  team	
  or	
  effort,	
  no.	
  	
  
  5.   If	
  we	
  are	
  a	
  re-­‐granting	
  organization	
  to	
  grassroots	
  groups	
  in	
  the	
  developing	
  world,	
  
       could	
  we	
  qualify?	
  	
  
               a. Generally	
  speaking,	
  regranting	
  does	
  not	
  qualify.	
  	
  If	
  you	
  are	
  essentially	
  
                     acting	
  as	
  a	
  US	
  based	
  fiscal	
  agent,	
  and	
  the	
  grassroots	
  group	
  is	
  an	
  
                     independent	
  freestanding	
  organization,	
  then	
  you	
  as	
  the	
  U.S.	
  based	
  
                     organization	
  could	
  apply	
  on	
  behalf	
  of	
  the	
  organization	
  for	
  funds	
  to	
  
                     implement	
  that	
  organization’s	
  proposal.	
  	
  	
  
  6.   If	
  the	
  project	
  is	
  based	
  in	
  the	
  US,	
  but	
  involves	
  and	
  benefits	
  program	
  participants	
  
       who	
  live	
  in	
  developing	
  countries,	
  is	
  that	
  use	
  of	
  funds	
  eligible?	
  
               a. Yes,	
  if	
  the	
  benefits	
  are	
  in	
  the	
  developing	
  world.	
  	
  	
  
  7.   We	
  are	
  a	
  US	
  based	
  organization	
  that	
  trains	
  college	
  students	
  in	
  all	
  aspects	
  of	
  
       small	
  enterprise.	
  	
  They	
  carry	
  out	
  their	
  small	
  enterprise	
  on	
  college	
  campuses,	
  and	
  
       the	
  profit	
  they	
  generate	
  is	
  allocated	
  to	
  a	
  US	
  -­‐based	
  development	
  organization	
  
       that	
  uses	
  microfinance	
  to	
  support	
  small	
  enterprise	
  among	
  rural	
  women	
  farmers	
  
       in	
  Africa.	
  Is	
  this	
  a	
  model	
  that	
  would	
  fit?	
  	
  
               a. If	
  the	
  focus	
  of	
  the	
  organization’s	
  proposal	
  is	
  the	
  benefit	
  to	
  the	
  work	
  the	
  
                     NGO	
  is	
  accomplishing	
  for	
  rural	
  women	
  in	
  Africa	
  and	
  the	
  US	
  program	
  is	
  
                     simply	
  a	
  way	
  of	
  contributing	
  to	
  that,	
  the	
  model	
  would	
  fit.	
  	
  If	
  the	
  focus	
  of	
  
                     the	
  proposal	
  is	
  on	
  the	
  benefit	
  to	
  the	
  US	
  based	
  programs,	
  then	
  it	
  would	
  
                     not	
  fit.	
  	
  There	
  would	
  also	
  need	
  to	
  be	
  demonstrated	
  that	
  the	
  profit	
  is	
  
                     necessarily	
  allocated	
  to	
  the	
  microfinance	
  fund,	
  that	
  it	
  is	
  built	
  in	
  to	
  the	
  
                     process,	
  and	
  is	
  not	
  simply	
  a	
  voluntary	
  grant	
  on	
  the	
  part	
  of	
  the	
  US	
  based	
  
                     organization.	
  
  8.   We	
  design	
  a	
  product	
  that	
  is	
  built	
  and	
  used	
  in	
  the	
  developing	
  world.	
  	
  We	
  are	
  
       generating	
  funds	
  for	
  our	
  work	
  in	
  the	
  developing	
  world	
  by	
  starting	
  a	
  program	
  to	
  
       sell	
  our	
  product	
  in	
  the	
  U.S.	
  	
  Would	
  this	
  US	
  effort	
  count	
  if	
  all	
  the	
  revenue	
  is	
  used	
  
       to	
  fund	
  our	
  work	
  in	
  the	
  developing	
  world?	
  
               a. If:	
  a)	
  funds	
  from	
  US	
  sales	
  are	
  truly	
  creating	
  a	
  new	
  source	
  of	
  revenue,	
  and	
  
                     a	
  grant	
  will	
  not	
  simply	
  cause	
  a	
  reallocation	
  of	
  funds	
  that	
  would	
  otherwise	
  
                     support	
  domestic	
  program;	
  and	
  b)	
  revenue	
  is	
  necessarily	
  used	
  to	
  support	
  
                     program	
  outside	
  the	
  US,	
  then	
  the	
  proposal	
  would	
  meet	
  the	
  guidelines.	
  
  9.   Is	
  global	
  biodiversity	
  conservation	
  eligible	
  under	
  the	
  Environment	
  category?	
  
               a. Yes.	
  




Page 2 of 4         |
10. Does	
  the	
  Health	
  critical	
  area	
  include	
  mental	
  health?	
  
              a. Yes.	
  
  11. If	
  the	
  US	
  based	
  organization	
  is	
  helping	
  artisans/	
  artisan	
  groups	
  in	
  developing	
  
      countries	
  gain	
  access	
  to	
  new	
  markets	
  for	
  their	
  work,	
  is	
  that	
  eligible?	
  Would	
  the	
  
      fund	
  provide	
  support	
  for	
  several	
  pilot	
  situations	
  helping	
  artisans	
  gain	
  access	
  to	
  
      new	
  markets/speciality	
  retailers,	
  etc?	
  
              a. This	
  is	
  well	
  within	
  the	
  intent	
  of	
  the	
  innovation	
  fund.	
  	
  	
  
  12. Whether	
  the	
  mission	
  to	
  advance	
  freedom	
  of	
  information	
  and	
  expression	
  in	
  
      support	
  of	
  democracy	
  and	
  democratic	
  institution	
  building	
  would	
  qualify	
  for	
  this	
  
      RFP?	
  	
  	
  	
  Would	
  the	
  fight	
  against	
  impunity	
  in	
  crimes	
  committed	
  against	
  human	
  
      rights	
  and	
  freedom	
  of	
  expression	
  defenders,	
  including	
  journalists,	
  qualify	
  for	
  this	
  
      RFP?	
  
              a. Within	
  its	
  five	
  areas	
  of	
  focus,	
  the	
  Innovation	
  Fund	
  defines	
  its	
  current	
  
                          priorities	
  in	
  the	
  developing	
  world	
  as	
  follows:	
  
                                  i. Global	
  Health,	
  with	
  specific	
  reference	
  to	
  health	
  systems;	
  
                                 ii. Education,	
  with	
  specific	
  reference	
  to	
  sustained	
  broad	
  access	
  to	
  
                                     basic	
  education	
  among	
  all	
  disadvantaged;	
  
                                iii. World	
  Relations,	
  with	
  specific	
  reference	
  to	
  entrepreneurial	
  effort	
  
                                     and	
  job	
  creation	
  in	
  conflict	
  areas	
  of	
  the	
  world;	
  
                                iv. Environment,	
  with	
  specific	
  reference	
  to	
  access	
  to	
  clean	
  water;	
  
                                 v. Poverty,	
  with	
  specific	
  reference	
  to	
  innovations	
  in	
  increasing	
  family	
  
                                     incomes,	
  small	
  and	
  micro	
  enterprise	
  strategies.	
  
                          Policy	
  work,	
  advocacy,	
  or	
  projects	
  to	
  advance	
  a	
  cause	
  in	
  public	
  opinion	
  or	
  
                          government	
  policy	
  corridors	
  are	
  not	
  qualified	
  for	
  Innovation	
  Fund	
  grants.	
  
  13. Can	
  you	
  make	
  up	
  of	
  an	
  example	
  of	
  an	
  ideal	
  project	
  that	
  meets	
  the	
  
      requirements?	
  
              a. There	
  is	
  no	
  ideal	
  project.	
  	
  More	
  important,	
  we’re	
  confident	
  that	
  
                          applicants	
  and	
  the	
  creativity	
  they	
  bring	
  to	
  the	
  problems	
  they	
  face	
  will	
  
                          fashion	
  initiatives	
  that	
  meet	
  our	
  criteria	
  better	
  than	
  any	
  hypothetical	
  we	
  
                          could	
  offer	
  up.	
  	
  That	
  said,	
  the	
  following	
  is	
  a	
  relatively	
  clear,	
  if	
  
                          unimaginative,	
  example	
  of	
  an	
  initiative	
  that	
  meets	
  our	
  criteria.	
  	
  	
  	
  
                          	
  
                          An	
  organization	
  in	
  the	
  clean	
  water	
  space	
  is	
  working	
  in	
  five	
  villages.	
  	
  It	
  
                          believes	
  it	
  has	
  developed	
  a	
  technology	
  that	
  can	
  turn	
  the	
  provision	
  of	
  
                          clean	
  water	
  into	
  a	
  business.	
  	
  It	
  has	
  a	
  plan	
  to	
  make	
  that	
  happen	
  but	
  it	
  
                          needs	
  is	
  a	
  beta	
  test	
  in	
  two	
  villages	
  to	
  determine	
  the	
  skills	
  and	
  capabilities	
  
                          that	
  are	
  needed	
  to	
  execute	
  the	
  plan	
  and	
  to	
  finalize	
  (because	
  the	
  Fund	
  is	
  




Page 3 of 4          |
targeted	
  at	
  the	
  go-­‐to-­‐market	
  phase)	
  revenue	
  structure	
  that	
  both	
  enables	
  
                   entrepreneur	
  profit	
  and	
  (if	
  required)	
  payment	
  back	
  to	
  the	
  originating	
  
                   technology	
  owner	
  via	
  fees	
  or	
  licenses.	
  	
  They	
  are	
  seeking	
  funding	
  for	
  a	
  
                   beta	
  test.	
  	
  This	
  would	
  qualify.	
  

Application Process
  14. In	
  regards	
  to	
  the	
  organizations	
  not	
  chosen	
  as	
  finalists,	
  will	
  they	
  have	
  
      the	
  opportunity	
  to	
  receive	
  a	
  critique	
  of	
  their	
  proposals?	
  
             a. Yes.	
  

Other
  15. Can	
  you	
  help	
  clarify	
  your	
  definition	
  of	
  "innovation"	
  i.e.	
  are	
  you	
  focusing	
  on	
  new	
  
      methods	
  of	
  fundraising,	
  or	
  to	
  help	
  our	
  organization	
  expand	
  into	
  a	
  new	
  
      fundraising	
  method	
  for	
  us?	
  
          a. By	
  innovation	
  we	
  do	
  not	
  mean	
  the	
  improvement	
  of	
  traditional	
  
                 philanthropic	
  grant	
  acquisition.	
  	
  We	
  are	
  really	
  talking	
  about	
  social	
  finance	
  
                 and	
  the	
  investment	
  in	
  medium	
  sized	
  non-­‐profits	
  to	
  make	
  them	
  able	
  to	
  
                 play	
  on	
  this	
  social	
  finance	
  field,	
  and	
  thus	
  provide	
  some	
  needed	
  stability.	
  
  16. How	
  do	
  you	
  define	
  social	
  finance?	
  
          a. It	
  is	
  everything	
  from	
  program	
  related	
  investment	
  to	
  impact	
  investing.	
  	
  
                 There	
  are	
  many	
  different	
  aspects	
  to	
  social	
  finance.	
  	
  What	
  it	
  generally	
  
                 means	
  is	
  strategies	
  that	
  have	
  the	
  ability	
  to	
  reach	
  markets	
  or	
  quasi	
  
                 markets	
  in	
  a	
  reliable	
  way	
  to	
  generate	
  profits	
  for	
  social	
  problem	
  solving.	
  	
  	
  
  17. Will	
  this	
  opportunity	
  be	
  offered	
  only	
  once,	
  or	
  will	
  it	
  be	
  offered	
  again	
  in	
  the	
  
      future?	
  
          a. Yes.	
  	
  Plans	
  are	
  for	
  this	
  to	
  be	
  an	
  ongoing	
  offering.	
  
                                                                                                                                         	
  
                                                                                                                      June	
  15,	
  2012	
  




Page 4 of 4        |

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Alliance for Global Good Innovation Fund Post Webinar Q&As 20120615

  • 1.   Innovation  Fund   Post-­‐Webinar  Questions  &  Answers     Revenue Criteria 1. Can  the  1/3  match  be  made  by  the  umbrella  organization  to  which  the  applicant   is  connected?   a. Perhaps.    If  the  umbrella  generally  subsidizes  its  subsidiary,  then  such   support  would  not  qualify  as  a  match.    However,  a  special  allocation  from   the  umbrella  to  the  subsidiary  so  that  the  proposed  initiative  can  be   executed  would  qualify.    In  other  words,  support  needs  to  be  over  and   above  normal  transfers  and  specifically  allocated  for  the  proposed   project     Program Content and Geography   2. We  are  an  international  NGO  with  an  office  in  US.    The  office  was  established  last   year  but  the  NGO  has  been  in  existence  since  1995.    Are  we  eligible  to  apply?     a. Yes.    The  10  year  requirement  is  designed  to  demonstrate  continuity  in   the  delivery  of  program,  and  not  the  establishment  of  the  US  based   nexus.       3. We  are  an  organization  that  looks  to  innovate  its  funding  stream  by  having  the   government  of  the  country  take  over  the  funding  many  of  service  delivery  costs   we  have  historically  covered.  Is  this  a  viable  proposal?   a. Generally  speaking,  we  would  not  consider  cost  shifting  to  governments   be  a  viable  proposal.    That  would  not  be  an  innovation  with  a  focus  on   market  or  quasi-­‐market  partnerships  for  social  problem  solving  at   sustained  and  scalable  levels.       4. Can  we  use  the  grants  for  projects  that  will  improve  resource  mobilization  and   contribute  to  sustainable  revenue  (such  as  those  that  raise  an  organization’s   visibility  or  improve  efficiency)?     a. Simply  improving  visibility  would  not  qualify.    However,  improved   efficiency  gets  a  “qualified  yes.”    If  by  improving  efficiency  you  are  freeing   445 DOLLEY MADISON RD., SUITE 208, GREENSBORO, NC 27410• 336-376-7710 MAIN • 336-851-0410 FAX • innovation@afgg.org EMAIL • www.afgg.org WEB
  • 2. up  resources  that  will  be  allocated  to  diversify  revenue  then  yes.    To   create,  build,  or  support  a  nonprofit  fundraising  team  or  effort,  no.     5. If  we  are  a  re-­‐granting  organization  to  grassroots  groups  in  the  developing  world,   could  we  qualify?     a. Generally  speaking,  regranting  does  not  qualify.    If  you  are  essentially   acting  as  a  US  based  fiscal  agent,  and  the  grassroots  group  is  an   independent  freestanding  organization,  then  you  as  the  U.S.  based   organization  could  apply  on  behalf  of  the  organization  for  funds  to   implement  that  organization’s  proposal.       6. If  the  project  is  based  in  the  US,  but  involves  and  benefits  program  participants   who  live  in  developing  countries,  is  that  use  of  funds  eligible?   a. Yes,  if  the  benefits  are  in  the  developing  world.       7. We  are  a  US  based  organization  that  trains  college  students  in  all  aspects  of   small  enterprise.    They  carry  out  their  small  enterprise  on  college  campuses,  and   the  profit  they  generate  is  allocated  to  a  US  -­‐based  development  organization   that  uses  microfinance  to  support  small  enterprise  among  rural  women  farmers   in  Africa.  Is  this  a  model  that  would  fit?     a. If  the  focus  of  the  organization’s  proposal  is  the  benefit  to  the  work  the   NGO  is  accomplishing  for  rural  women  in  Africa  and  the  US  program  is   simply  a  way  of  contributing  to  that,  the  model  would  fit.    If  the  focus  of   the  proposal  is  on  the  benefit  to  the  US  based  programs,  then  it  would   not  fit.    There  would  also  need  to  be  demonstrated  that  the  profit  is   necessarily  allocated  to  the  microfinance  fund,  that  it  is  built  in  to  the   process,  and  is  not  simply  a  voluntary  grant  on  the  part  of  the  US  based   organization.   8. We  design  a  product  that  is  built  and  used  in  the  developing  world.    We  are   generating  funds  for  our  work  in  the  developing  world  by  starting  a  program  to   sell  our  product  in  the  U.S.    Would  this  US  effort  count  if  all  the  revenue  is  used   to  fund  our  work  in  the  developing  world?   a. If:  a)  funds  from  US  sales  are  truly  creating  a  new  source  of  revenue,  and   a  grant  will  not  simply  cause  a  reallocation  of  funds  that  would  otherwise   support  domestic  program;  and  b)  revenue  is  necessarily  used  to  support   program  outside  the  US,  then  the  proposal  would  meet  the  guidelines.   9. Is  global  biodiversity  conservation  eligible  under  the  Environment  category?   a. Yes.   Page 2 of 4 |
  • 3. 10. Does  the  Health  critical  area  include  mental  health?   a. Yes.   11. If  the  US  based  organization  is  helping  artisans/  artisan  groups  in  developing   countries  gain  access  to  new  markets  for  their  work,  is  that  eligible?  Would  the   fund  provide  support  for  several  pilot  situations  helping  artisans  gain  access  to   new  markets/speciality  retailers,  etc?   a. This  is  well  within  the  intent  of  the  innovation  fund.       12. Whether  the  mission  to  advance  freedom  of  information  and  expression  in   support  of  democracy  and  democratic  institution  building  would  qualify  for  this   RFP?        Would  the  fight  against  impunity  in  crimes  committed  against  human   rights  and  freedom  of  expression  defenders,  including  journalists,  qualify  for  this   RFP?   a. Within  its  five  areas  of  focus,  the  Innovation  Fund  defines  its  current   priorities  in  the  developing  world  as  follows:   i. Global  Health,  with  specific  reference  to  health  systems;   ii. Education,  with  specific  reference  to  sustained  broad  access  to   basic  education  among  all  disadvantaged;   iii. World  Relations,  with  specific  reference  to  entrepreneurial  effort   and  job  creation  in  conflict  areas  of  the  world;   iv. Environment,  with  specific  reference  to  access  to  clean  water;   v. Poverty,  with  specific  reference  to  innovations  in  increasing  family   incomes,  small  and  micro  enterprise  strategies.   Policy  work,  advocacy,  or  projects  to  advance  a  cause  in  public  opinion  or   government  policy  corridors  are  not  qualified  for  Innovation  Fund  grants.   13. Can  you  make  up  of  an  example  of  an  ideal  project  that  meets  the   requirements?   a. There  is  no  ideal  project.    More  important,  we’re  confident  that   applicants  and  the  creativity  they  bring  to  the  problems  they  face  will   fashion  initiatives  that  meet  our  criteria  better  than  any  hypothetical  we   could  offer  up.    That  said,  the  following  is  a  relatively  clear,  if   unimaginative,  example  of  an  initiative  that  meets  our  criteria.           An  organization  in  the  clean  water  space  is  working  in  five  villages.    It   believes  it  has  developed  a  technology  that  can  turn  the  provision  of   clean  water  into  a  business.    It  has  a  plan  to  make  that  happen  but  it   needs  is  a  beta  test  in  two  villages  to  determine  the  skills  and  capabilities   that  are  needed  to  execute  the  plan  and  to  finalize  (because  the  Fund  is   Page 3 of 4 |
  • 4. targeted  at  the  go-­‐to-­‐market  phase)  revenue  structure  that  both  enables   entrepreneur  profit  and  (if  required)  payment  back  to  the  originating   technology  owner  via  fees  or  licenses.    They  are  seeking  funding  for  a   beta  test.    This  would  qualify.   Application Process 14. In  regards  to  the  organizations  not  chosen  as  finalists,  will  they  have   the  opportunity  to  receive  a  critique  of  their  proposals?   a. Yes.   Other 15. Can  you  help  clarify  your  definition  of  "innovation"  i.e.  are  you  focusing  on  new   methods  of  fundraising,  or  to  help  our  organization  expand  into  a  new   fundraising  method  for  us?   a. By  innovation  we  do  not  mean  the  improvement  of  traditional   philanthropic  grant  acquisition.    We  are  really  talking  about  social  finance   and  the  investment  in  medium  sized  non-­‐profits  to  make  them  able  to   play  on  this  social  finance  field,  and  thus  provide  some  needed  stability.   16. How  do  you  define  social  finance?   a. It  is  everything  from  program  related  investment  to  impact  investing.     There  are  many  different  aspects  to  social  finance.    What  it  generally   means  is  strategies  that  have  the  ability  to  reach  markets  or  quasi   markets  in  a  reliable  way  to  generate  profits  for  social  problem  solving.       17. Will  this  opportunity  be  offered  only  once,  or  will  it  be  offered  again  in  the   future?   a. Yes.    Plans  are  for  this  to  be  an  ongoing  offering.     June  15,  2012   Page 4 of 4 |