Innova&on Fund
Alliance for Global Good Round Two Request for Proposals
Ques9ons and Answers
Innova&on Fund leadership on this call
• David Brand: Chief Execu9ve Officer, AFGG 35 year business experience; AFGG start-‐up co-‐founder.
• Jerry Chasen, Esq.: Chief Opera9ng Officer, AFGG LL.M. in Estate Planning; Philanthropic advisor and counselor; Founder of the Advisors Project; Chair Community Projects Fund Distribu9on CommiOee, Miami Founda9on
• Rodney W. Nichols: Senior Advisor to AFGG Past President, New York Academy of Sciences, and past VP and Execu9ve VP of Rockefeller University
• Susan Raymond, Ph.D.: Execu9ve Vice President, Changing Our World, Inc., Founding Director of the Innova9on Fund Experience at USAID and World Bank in program/loan design and execu9on; extensively published on philanthropic strategy
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Purpose of Innova&on Fund
AFGG created the Innova9on Fund to provide Venture Philanthropy to medium-‐sized U.S.-‐based nonprofits engaged in global issues of health, educa9on, environment, poverty, and world rela9ons to implement mission-‐relevant social finance mechanisms that contribute to the nonprofit’s sustainability, and are part of the problem-‐solving programs of the nonprofit.
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Process for Round Two
• RFP Available April 1 • Submission of Proposal May 31 • Concept Review Complete July 15 • No9fica9on of Finalists By August 1 • Addi9onal Material due August 30 • Pitch Presenta9ons October 1 • Grant Announcements By October 15
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Structure of Webinar
• Revenue and Eligibility Criteria
• Program Content and Geography
• Applica9on Process
• Grant Award
• Other
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Revenue and Eligibility Criteria
Ques&on 1
Could you clarify the maximum revenue size of eligible nonprofits?
The Innova9on Fund seeks to strengthen nonprofits that, on average for the last five years, have had annual revenue below $20 million and have been revenue stable. We understand that there are differences across years and understand that there may be a 10% divergence above that $20 million level (e.g., $2 million higher), but that is our target range.
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Ques&on 2
Is there a minimum revenue size?
The posted minimum annual revenue is $5,000,000. That said, we care deeply about big ideas, even if the organiza9on is small, so applica9ons from organiza9ons that don’t meet the minimum posted revenue will be considered. Review in any case will carefully examine evidence of an applicant’s viability and capacity to execute the proposal, and this will be par9cularly true of organiza9ons with annual revenue less than $5,000,000.
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Ques&on 3
Can an Ins<tute of a University apply if its revenue is within the acceptable range although the University is not, and if the Ins<tute is not a separate 501(c)3?
Yes. However, we would want to see that the Ins9tute is operated, in effect, as a wholly owned subsidiary with programma9c independence. This also applies to very large nonprofits which have internal subsidiaries or members that are, in effect, independent, even if they do not hold a separate 501(c)3 status.
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Ques&on 4
Are there categories of revenue that can be deducted from the total revenue size, e.g., revenue that is passed through for rebates or the mone<zed value of in-‐kind dona<ons?
The Fund agrees that two categories of revenue can be subtracted from total revenue in determining eligibility:
• the mone9zed value of in-‐kind contribu9ons • contribu9ons to dedicated scholarship funds
Earned revenue is to be included in determining annual revenue. Other financial structure excep9ons will be dealt with on a case-‐by-‐case basis via email inquiry un9l May 29. Answers will be posted on the AFGG website.
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Ques&on 5
Why do you ask about “organiza<onal stability”?
The Innova9on Fund targets proven, stable organiza9ons, and not startups. Evidence of stability:
longevity, cumula9ve impact, donor testamonials, etc.
All applicants must demonstrate five years of stable revenue.
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Ques&on 6
Can an applicant be a non-‐US NGO?
All applicants must themselves be a U.S. 501(c)(3) tax-‐exempt organiza9on Proposals on behalf of non-‐US NGO’s may be made by a U.S. 501(c)(3) tax exempt organiza9on: – ac9ng as a fiscal agent, or – Which is a “friends of” organiza9on. In these cases, size and stability criteria are applied to the Implemen<ng organiza9on and not the represen9ng organiza9on.
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Program Content and Geography
Ques&on 7
What do you mean by “global”? Are there geographic areas outside the United States that will not be considered? Are there preferred sites?
We will not fund any ac9vity that is in a na9on on the U.S. Treasury boycoO list as of May 31, 2013. There are no other geographic preferences.
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Ques&on 8
Can proposals be for programs within the United States?
No. The program ac9ons and effects must be abroad. However, program management and administra9on can, but does not have to, be in the United States. Moreover, a partnership of a U.S. nonprofit with domes9c programs and a U.S. nonprofit with interna9onal programs for an overseas ini9a9ve using the capaci9es of both is well within the intent of the Fund.
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Ques&on 9
Must the program be within just one of the AFGG program areas, or can it be across areas?
The Innova9on Fund looks extremely favorably on programs and strategies that are purposefully and deeply inter-‐sectoral.
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Ques&on 10
Is the poverty category only focused on small/micro enterprises-‐-‐or is it open to skill building that leads to improved income??
Specifically with regard to this ques9on, the RFP states that it seeks innova9ons in increasing family incomes.
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Ques&on 11
Please discuss more fully how advanced an ini<a<ve must be to qualify for the compe<<on.
The RFP refers repeatedly to a business plan A proposal should reflect the nature and extent of thought and prepara9on that would be present in a well drawn business plan.
that should include: – Revenue genera9ng plan, including an9cipated
financial structure and revenue projec9ons; – Market analysis; – Strategy for implementa9on; – Support and documenta9on demonstra9ng
competence and viablity 18
Ques&on 12
How imminent must implementa<on be to qualify for the compe<<on?
We are looking for “market ready” proposals. The proposal should indicate the expected 9me frame for implementa9on of the proposal. Ideally, the Fund would an9cipate the innova9on would be implemented within 6 – 12 months of the grantee’s receipt of funds.
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Ques&on 13
Can funds be used to establish a legal en<ty?
Other than restric9ons on salary alloca9ons stated in the RFP, funds may be used for any purpose legal under U.S. law.
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Ques&on 14
Are alloca<ons for overhead prohibited—for the implemen<ng organiza<on, the fiscal agent or a “friends of”?
We take no posi9on on overhead. We ask for a detailed and transparent budget on these maOers, and reviewers will apply a principle of reasonableness to the total indirect cost weight on the value of the result.
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Ques&on 15
Can the innova<on be focused on programs or policies, rather than on finance or revenue?
No. The focus is on revenue diversifica9on and stabiliza9on through strategies that are outside of tradi9onal charitable philanthropy. Thus, among other things, applica9ons to fund website development and/or personnel for purposes of growing charitable dona9ons will not be considered.
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Ques&on 16
What are the repor<ng requirements and <meframes?
Brief leOer reports will be due on a quarterly basis. However, the Fund expects to be in regular contact with its grantees to learn from, and disseminate, what works and what doesn’t.
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Ques&on 17
How specific does the quan<ta<ve measure of impact have to be?
We look to the applicants to suggest meaningful measures. However, assessment of proposals will consider both how an organiza9on defines “results” and the quality of that data. Reviewers will expect quan9ta9ve measures of results, both in terms of revenue genera9on and in terms of service/program enhancement.
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Applica9on Process
Ques&on 18
Must the proposal be submiYed through the web-‐based system?
Yes.
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Ques&on 19
How much detail is required rela<ve to past studies of innova<on market and viability? Should studies be aYached?
For the ini9al proposal, studies can be summarized and should include sufficient detail such that the reviewers can assess the merits of the proposed ini9a9ve. If an applicant is invited to the pitch session, addi9onal detail and focus on past studies is likely.
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Ques&on 20
Is the oral pitch required?
Yes. It must be aOended by senior execu9ves as described in the RFP. Travel expenses will not be defrayed by the Fund. If long distances for primary execu9ves are an impediment, the Fund will discuss alterna9ves (e.g., skype), but demonstra9on of the commitment of execu9ves and boards is required.
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Grant Award
Ques&on 21
What is the minimum and maximum grant size?
There is no minimum. The maximum grant for Round Two is $90,000.
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Ques&on 22
How many organiza<ons do you expect will submit funding requests and how many grants will be awarded?
From this Round Two cycle, no fewer than 3 grants will be made. In Round One, we received over 40 applica9ons, although some were immediately eliminated for failing to meet the requirements of an “Eligible Organiza9on”, as that term is used in the RFP.
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Ques&on 23
What is the <meline for grant disbursement?
A proposal should outline the applicant’s op9mum 9meline for receipt of funds. We are prepared to provide three quarters of the amount funded when the grant is made. The final quarter of funding will be available at the start of the sixth month aqer the grant award, but shall be 9ed to the organiza9on’s receipt of its matching funds.
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Ques&on 24
Describe the matching requirement. Our purpose in requiring a match is to provide applicants with an opportunity to enroll new or exis9ng donors in the establishment of an important new funding stream. Some specifics about the match: – Fund grants can comprise no more than 66% of the
total cost to implement the proposed ac9vity. – Balance to be funded by matching dona9on(s). – Government is not an acceptable source of matching
dona9on. – If acceptable to government funders, Fund grants (once
actually made) may be considered for purposes of private matching of government grants.
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Other
Ques&on 25
Are there restric<ons on partnerships with for-‐profit organiza<ons? With other non-‐profit organiza<ons?
– No. In fact, we would favor those in which the Fund is leveraged by financial par9cipa9on by such a partner.
– Similarly we are interested in proposals reflec9ng a collabora9ve ini9a9ve, so long as one organiza9on is the lead contact and responsible for the grant, and meets the RFP requirements of an “eligible organiza9on.”
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Ques&on 26
What is the <me commitment for the mentoring network?
This has not been specified. Round Two awardees would not be asked to be mentors un9l Round Four. We would seek the guidance of Rounds One and Two awardees on the design of the program.
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Thank You for Par&cipa&ng!
Ques9ons and answers reviewed on today’s call will be posted on the website. Addi9onal
ques9ons can be submiOed by email through 5 pm (ET) Wednesday May 29
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