Development Donors who they are what they want

Development Donors: who they are, what they want and how to deal with them IRI Seminar, May 2003

Development Donors Who They Are. . .

Types and Numbers • Three main types of donors, providing grants for international research and development: – Bilateral – Multi-lateral – Foundations • Approximately 50 major donors; perhaps 25 -30 interested in IRI-type work

Where do donors get their funds? • Bilateral (public) – all funds from treasury of one country • Multilateral (public) – funds from treasuries of many members • Foundation (private) – funds from endowments formed by companies or rich individuals

Potential IRI Donors • Bilateral – USAID, Df. ID, SIDA, CIDA, Norad, Aus. AID • Multilateral – IFAD, Af. DB, ADB, IADB, EU • Foundations – Rockefeller, Packard, Toyota, Gates

Where are they? (a) Multi-lateral HQs • • • Af. DB moving from Abidjan to Tunis ADB in Manila IADB, WB in Washington IFAD in Rome EU in Brussels

Where are they? (b) bilateral donors • Headquarters are in national capitals • Field offices in the capitals of host countries • Large bilaterals often have regional offices – e. g. Nairobi, Accra, Bangkok, Delhi, Santiago • Multi-laterals and large foundations also have field and regional offices

What sort of people? • Public donor personnel are civil servants -mostly educated generalists, good at pushing paper • Large agencies employ a few scientists and/or contract with scientists to review proposals • Donor personnel are outward looking -interested in other countries, other cultures, seeing development happen

More on people. . . • Donor people don’t think of themselves as funding sources, but as development workers. • Donors like to be considered partners in development projects -- with valid ideas and experience. • Donors want to see more than dollar signs in your eyes!

Donors aren’t scientists! • Timing: Donors think in 2 - 4 year projects (you will have to phase longer projects) • Output: Donors want impact, not results (you will have to think beyond results) • Politics: Donor work is very political (you will have to keep up with the news)

Development Donors What They Want. . .

Donor Goals • To differing extents, all dev. donors want: – poverty alleviation – protection of the environment – food security – improved quality of and access to: education, health, information, and communications – bio-diversity • For specific donor goals, see web sites, annual reports

Donor interests depend on politics, national culture, history • Scandinavians like projects on environment, gender, equity. • US likes projects involving private sector. • French usually strong in francophone excolonies; UK in anglophone ex-colonies. • Swiss like mountain countries, like Nepal • Dutch like drainage and water projects

Donors want impact • Impact = measurable improvements in currently bad conditions, such as: • increased incomes for poor families • increased nutrition of infants and mothers • universal access to clean drinking water • reversal of soil degradation and erosion • decreased incidence of infectious diseases

Donors like topics that… • are sufficiently important to be worth doing • are internally approved (i. e. fit within your strategic plan) • are seen as a priority by your beneficiaries • are “managable” (i. e. there’s a good chance you’ll achieve your objectives in the project life, with the project budget). . .

They also like projects that. . . • have the right balance of risks and returns • attract strong research partners that have a comparative advantage to carry out the project • fit with the donor’s interests and grant portfolio • are within the donor’s budget

An Important Topic. . . • An important topic for a donor is one which can make a real difference in the well-being of disadvantaged people in the countries where they work. • The more difference, and the more people helped, the better. (Remember, some donors take the bottom line and divide by the number of beneficiaries!)

Which will they choose? • Projects can be strategic (done in a lab or office, opening up scientific doors) or applied (implemented in the real world, applying strategic results for beneficiaries) • Which do you think a development donor would more likely want to support and why?

Answer. . . • Because donors are interest in development impact, they are likely to prefer applied research topics -- closer to the beneficiaries. • But, donors do recognize the need for strategic research to yield results that can be applied in the real world.

So. . . • If you select a strategic research topic for external donor funding, you need to show, in detail, how and when the results of your work will ultimately make people better off. [Demonstrate impact. ]

Large or small? • Project size can be defined by the budget size. • Large and small are relative to the type of project. In ag research, roughly: small = under $150, 000/3 years medium = $150, 000 - $350, 000/3 years large = over $350, 000/3 years

Answer. . . • Donors like to make as many grants as possible to spread risks, increase linkages, get more impact. (Favors small topics) • But, grants mean lots of paperwork, meetings, decisions -- same effort for small or large projects. • So, it depends -- donors will not necessarily choose one or the other!

Simple or Complex? • 1 - 2 objectives • handful of sites • limited number of partners • Several objectives • several sites in many countries • several partner groups

Which will donors like? • A simple project is more likely to succeed: – fewer things can go wrong – easier to manage – easier to achieve outputs • But donors like to maximize participation -like many partners • So donors may support either type of topic!

Imagine you are a donor, and must choose among. . . • A project to find a vaccine for AIDS • A project to build 100 schools in rural Cameroon • A project to grow substitute crops for opium in the Golden Triangle • A project to train scientists in how to write convincing proposals

Taking into account. . . • • • Importance of the topic to you as donor Priority to beneficiaries Manageability Risks and returns Any other considerations… Which do you choose? Why?

Dealing with Donors. . .

Donor Intelligence. . . • Needs gathering by as many spies as possible • Needs sharing with everyone with a need to know • Must constantly be updated • Must be managed (RMO) • Involves managers and scientists, so become a 007 in your field

There is no substitute for personal interaction… • You can learn from colleagues • Or from the web, donor profiles, annual reports, etc. • But personal interaction is still the best way of arousing donor interest.

This means visiting donors yourself. . . • When traveling to conferences, on home leave, to visit projects… • Take an extra day or two to visit donor offices for a get-to-know-each-other visit. • You will need to set this up in advance, take support materials, and follow up afterwards. • DON’T ASK FOR MONEY ON THE FIRST VISIT

How to have a good first visit to a donor • Remember you are there for information, not money • Don’t take along draft concept notes • Do listen more than talk • Do treat the donor as an intelligent layperson, and a potential partner • And read Marian’s handout first!

If you have some donor interest, from a previous visit, or in response to an RFP… • • • Design a project attractive to that donor Write it up as a concept note Get it approved internally Get partners on board Send it to a donor

Only write a full proposal • If a donor is attracted by your concept note and asks for more details, or • If you are responding to a competitive grants program • A full proposal takes far more time, money and effort for you to write, and the donor to read.

If the donor likes your proposal. . . • You will go into negotiations -- you need to prepare in advance • Be ready to cut your project to suit your donors needs • If the donor can give less than you asked for, you will need to cut your objectives • Nothing is so frustrating than an underfunded project!

If you get a grant agreement… Maintain good donor relations by: – reporting regularly and honestly – telling bad news as well as good – encouraging donor visits to project – sounding out possible follow-on grant well in advance

Future training -- how to: • • • Design a fundable project Prepare a good concept note Write a convincing proposal Review and improve CNs and proposals Negotiate with donors Understand how donors review proposals, what turns them on and turns them off!