Alignment to donors? VS. Portfolio management!

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:
www.mzninternational.com
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
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