Category: Grantmaking

Humanitarian investing gathers speed at Davos

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Finding ways to channel more private investment into humanitarian settings was a hot topic this year at Davos — the World Economic Forum’s 48th annual meeting in Switzerland — which included the tentative launch of a development impact bond to create jobs for Syrian refugees.

The IKEA Foundation said it will provide €6.8 million ($7.7 million) to fund the outcomes of the bond, which has been put together by impact finance firm KOIS, and aims to help up to 12,000 Syrian refugees and host populations in Jordan and Lebanon earn a living. 

New research by British think tank the Overseas Development Institute shows that job creation activities have the potential to offer a financial and social return on investment. But some delegates expressed reservations about the role the private sector should play in financing humanitarian efforts.

Mark Lowcock, head of the U.N. Office for the Coordination of Humanitarian Affairs, said that while he sees a big opportunity for the private sector to come in where there are “investable activities,” it is important not to assume too much from investors and businesses that are ultimately profit-driven.

The development impact bond is part of a broader effort to attract new financing for humanitarian efforts in the face of an increasing number of protracted crises. Between 2005-2017, the number of active crises nearly doubled from 16 to 30 and the average length of active United Nations interagency appeals also increased, according to UNOCHA. Despite these growing needs, donor financing has not kept pace. Experts also say funding needs to be longer-term and to embrace the humanitarian-development continuum in order to reflect the extended nature of the crises.

Per Heggenes, CEO at the IKEA Foundation, said that financial tools such as development impact bonds could help bridge the funding gap. “The needs are increasing, and we can’t expect it all to be covered by donors; we have to look to involve the private sector partly on the funding side but also [for] their knowledge and networks which can be more valuable than just money.”

Speaking during a session Tuesday, Peter Maurer, president of the International Committee of the Red Cross, said aid actors tend to see fragile states as “places where it is impossible to do something.” While many organizations are working on income-generating activities, they tend to be “left alone by the international aid system,” he said.

[Devex]

Warren Buffett following through on his Giving Pledge

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Warren Buffett just donated $3.4 billion to five charitable foundations. The massive philanthropic effort is a part of Buffett’s lifetime pledge to divest part of his stock in Berkshire Hathaway each year.

Buffett, 87, announced the pledge in 2006. His donations — which total about $31 billion to date — go to five organizations including the Susan Thompson Buffett Foundation, named for his wife and run by his children, and the Bill & Melinda Gates Foundation.

In 2010, Buffett partnered with Gates to create the Giving Pledge, a public commitment through which billionaires commit to donating half of their wealth to philanthropic causes of their choice. As of May 2018, there are 183 pledgers from 22 countries. The list includes the cofounders of Airbnb, Facebook CEO Mark Zuckerberg, former New York City mayor and Bloomberg CEO Michael Bloomberg, and Oracle founder Larry Ellison.

Buffett is the world’s third-wealthiest person with a net worth of about $83 billion, trailing only Amazon’s Jeff Bezos and Gates. On Monday, it was announced that Bezos is the richest person in “modern history.” His worth recently hit $150 billion. Bezos has yet to sign onto Gates’s and Buffett’s pledge.

“I’m not an enthusiast for dynastic wealth, particularly when 6 billion others have much poorer hands than we do in life,” Buffett famously said in 2006.

He updated his pledge in 2010, writing: “More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day.”

[Yahoo News]

New study projects $17 Billion drop in US charitable giving for 2018

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The American Enterprise Institute (AEI) released a study that estimates charitable giving will decline by more than $17 billion in 2018 due to last year’s overhaul of the tax code by the Trump administration.

According to The Hill, “AEI researchers estimated that of the projected $17.2 billion decline in giving, $14.2 billion of the reduction will be due to the bigger standard deduction and $3 billion will be due to other provisions in the tax law.

[Council on Foundations]

US foundations have invested $50 Billion in Sustainable Development Goals

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The Sustainable Development Goals (SDGs) represent the most ambitious — as well as expensive — global development framework in history. The framework sets specific targets in seventeen areas, from ending poverty in all its forms (Goal 1), to combating climate change and its impacts (Goal 13), to achieving gender equality (Goal 5). But with an estimated annual price tag of $3.5 trillion, it’s clear that governments alone cannot finance the SDGs and hope to achieve the framework’s 2030 targets.

It’s not a surprise that Goal 3 (Ensure healthy lives) and Goal 4 (Ensure inclusive and equitable quality education for all) have received the lion’s share of the funding to date (both more than $18 billion). In addition to regular health-related spending, foundations also have contributed significant sums in response to various health emergencies, both natural and man-made.

Though it has received considerably less funding than the other two, it’s interesting to note that Goal 5 (Achieve gender equality) ranks third  —  preliminary analysis hints at a promising scenario for gender equality-related funding — while Goal 16 (Promote peaceful and inclusive societies and justice for all) is close behind in the fourth spot. Indeed, a deep dive into Goal 16-related funding reveals that a lot of the grants made in support of efforts in this area overlap with Goal 5, gender equality, which suggests to us that peace and justice are strongly correlated with gender equality and that funders are well aware of the linkage.

Foundation Center data shows that foundations have contributed more than $50 billion toward achieving the SDGs since January 2016, when the SDG agenda was formally launched. In a blog post in 2016, Foundation Center president Brad Smith predicted that foundations would contribute $364 billion toward achieving the by 2030. While it’s too early to say whether Brad will be proved correct, the initial trends are favorable.

[Philanthropy News Digest]

Gains against malaria at risk from US cuts and donor complacency

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Zambia’s multipronged effort against malaria is making headway, at least in some parts of the country. In Eastern Province,  parasite prevalence among small children is down almost by half, to 12 percent. Efforts in Southern Province have been even more successful –prevalence is now below one percent. The national death rate declined by around 80 percent from 2010 to 2017. However, the results have been uneven. Many parts of the country have seen increases in prevalence, with some areas as high as 32 percent.

A big chunk of the funding for Zambia’s anti-malaria programming comes from the United States. Begun under former president George W. Bush, the fight against malaria is often cited as one of the US government’s most successful global health campaigns. But that could all change with President Donald Trump’s threat to cut foreign assistance around the globe.

The United States is such a massive player in global health, accounting for more than one third of total anti-malaria funding expenditures worldwide, that even relatively minor cuts would have a significant impact. The current global budget for malaria is less than half of what is needed to meet global malaria targets of reducing malaria by 40 percent by 2020, according to the World Health Organization.

Malaria experts warn that a reduction in that effort would be more than a minor setback: if malaria has been suppressed in a region and then resurges, the results can be devastating since natural immunities will be lowered and death and disability can rise sharply.

Globally, the trend is worrying. A recent WHO assessment found that progress around the world had stalled for the first time in a decade.

[IRIN]

Europe remains the world’s leading donor of development aid

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The European Union and its Member States continue to be the world’s leading provider of Official Development Assistance (ODA) with an overall amount of €75.7 billion ($93.7 billion) in 2017, confirm the newly released figures by OECD.

The EU collective constituted 57% of Official Development Assistance globally  in 2017.

Commissioner for International Cooperation and Development, Neven Mimica, said: “The EU and its Member States continue to provide over half of the total Official Development Assistance globally, investing in people, stronger institutions and societies.”

“However, I am strongly concerned about the decrease of EU collective ODA and of development assistance worldwide. Achieving sustainable development requires a persistent collective effort. We know we need to do more. As the world’s leading ODA provider the EU must show leadership and responsibility.”

The EU and its Members States have been consistently in the lead of global efforts on development financing.

[Source: Europa.eu]

How to track the UN’s 17 Developmental Goals

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This Sustainable Development Goal Tracker is a public tool to follow the progress of 17 global goals set by the United Nations in 2015, found here.

The U.N. affirmed 2030 as the deadline for the international community to achieve significant growth toward these goals:

  1. No poverty
  2. Zero hunger
  3. Good health
  4. Quality education
  5. Gender equality
  6. Clean water and sanitation
  7. Affordable and clean energy
  8. Decent work and economic growth
  9. Industry, innovation and infrastructure
  10. Reduced inequalities
  11. Sustainable cities and communities
  12. Responsible consumption and production
  13. Climate action
  14. Life below water
  15. Life on land
  16. Peace, justice and strong institutions
  17. Partnerships for the goals

Bill and Melinda Gates accomplishments from giving away over 40 billion dollars

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It’s been 18 years since Bill and Melinda Gates announced that they intended to give away their fortune—now an estimated $91 billion—to better the planet, along with the lives of its most vulnerable inhabitants. Since then, they’ve hired over 1,400 employees and spent $40.3 billion to tackle some of the hardest-to-solve problems—like healthcare, poverty and education—in both developing countries and here at home.

“The human condition, by all key measures, has improved dramatically,” says Bill. “People are living longer and less children are dying; the death rate for children under five has been cut in half over the last 15 years.” Adds Melinda: “Last week I was in West Africa and Kenya. The amount of entrepreneurism and people lifting themselves up is palpable. The world is changing for the better and we want people to know that.”

Q: What accomplishment are you most proud of?
Bill: Global health is our biggest area, and it’s going well. With any luck we’ll have the last polio case this year.
Melinda: There are literally millions of children alive because of the vaccines that we’ve been involved with.
Bill: And there are things that are much longer term, like getting an HIV vaccine done, which unfortunately will probably take another decade. Eradicating malaria will probably be a 20-year quest.

Q: You often bring your kids on your humanitarian trips to the Third World. What have they learned?
Melinda: All three of our kids have spent a lot of time in the developing world, not just on nice safaris but sometimes living with these families. So it’s become central to our lives and, I’d say, has changed us all for the better. I think it will probably affect the path they’re each on in life. It certainly grounds us in what’s important.

[People]

The forgotten man: The refugee forced to flee, and then vilified in the media and politics

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The humanitarian community presently faces a mammoth funding shortage for the problems it already faces, let alone being able to mitigate against new disasters, said Peter Maurer, the president of the International Committee of the Red Cross to the crowd gathered at Davos. “We are confronted in 2018 with a big gap between needs of people and the capacity of the international system as a whole to respond,” he said.

“Historically, migration has a positive force in societies and economies around the world,” said William Swing, the director general of the International Organization of Migration. “We need to recognize that migration is not an issue to be ‘solved.’ It is a human reality that we need to manage, humanely and responsibly.”

But that’s simply not happening in most Western countries. “People look to their leadership, and there just isn’t a lot of political courage and leadership on the issue of migration right now,” Swing said.

Indian Prime Minister Narendra Modi lamented the disillusionment seeping into the West. “Many societies and countries are becoming more and more focused on themselves,” he said. “It feels like the opposite of globalization is happening. … Everyone is talking about an interconnected world, but we will have to accept the fact that globalization is slowly losing its luster,” Modi said. “The solution to this worrisome situation against globalization is not isolation. The solution is in understanding and accepting change.”

Valter Sanches, the general secretary of IndustriALL Global Union, which represents about 50 million workers in more than 140 countries, said that the chasm between rich and poor was only growing wider. And the politics of the moment don’t seem capable of breaching the gap.

[Washington Post]

10 ways basic living standards have risen for billions of people

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  1. The International Energy Agency announced that nearly 1.2 billion people around the world have gained access to electricity in the last 16 years.
  2. In February, the World Bank published new figures showing that 20 years ago, the average malnourished person on planet Earth consumed 155 fewer calories per day than they needed. Today, that number is down to 88.
  3. Since 2000, life expectancy in Rwanda is up from 49 to 64, child mortality is down more than two-thirds, maternal mortality is down nearly 80%, and HIV/AIDS prevalence is down from 13% to 3%. Mail & Guardian
  4. In the last three years, the number of people in China living below the poverty line decreased from 99 million to 43.4 million. And since 2010, income inequality has been falling steadily. Quartz
  5. 275 million Indians gained access to proper sanitation between 2014 and 2017. Gates Notes
  6. In 1991 more than 40% of Bangladesh lived in extreme poverty. The World Bank said this year that the number has now dropped to 14% (equating to 50 million fewer people). Quartz
  7. The United States’ official poverty rate reached 12.7%, the lowest level since the end of the global financial crisis. And the child-poverty rate reached an all time low, dropping to 15.6%. The Atlantic
  8. Between 2005 and 2017, Afghanistan built 16,000 schools, the nation-wide literacy rate increased by 5%, and the youth literacy rate increased by more than 16%. USAID
  9. In October, a new report by the International Labor Organization revealed that global child labor has plummeted. In 2016, there were 98 million fewer boys and girls being exploited than in 2000. CS Monitor
  10. Global deaths from terrorism dropped by 22% from their peak in 2014, thanks to significant declines in four of the five countries most impacted: Syria, Pakistan, Afghanistan and Nigeria. ReliefWeb

[Quartz]