LONDON – Global Citizen, an international non-profit organization working to help end poverty, said Monday it plans to launch six funds of up to $ 1 billion each, focusing on environmental and social impacts in the developing world.
The goal of the Global Citizen Impact Fund is to help plug a large gap in funding for poor countries struggling to meet the UN 2030. Sustainable development goalsThese include providing access to clean water and combating climate change.
Mick Sheldrick, chief policy officer for Global Citizenship, told Reuters that the world’s poorest countries needed $ 400 billion in external funding annually to meet these targets, but only a fraction of that was currently available.
To help drive rapid change, Global Citizen says its funds have been created with partners. NPXUsing a financing model will bring together philanthropists and investors who believe it will quickly become measurable.
It expects donors to start raising money in the next six to nine months and is targeting at least $ 25 million for each fund, although most NGOs selected to receive funding can scale quickly and absorb donors’ money up to $ 1 billion.
Under the model, investors, initially funded with impact orders, would pay to help the NGO expand its services in order to hit specific targets. If successful, and after the results have been independently verified by a third party, the Global Citizen Fund in question will release the donor money to the NGO, to repay the investors.
Through the process, investors will receive about 5-6% return on their capital, NGOs will receive an incentive, while donors will be assured that they will only finance enterprises that work.
“We really think it has the potential to be a groundbreaking result-funding vehicle that could transform the philanthropist,” said Mr Sheldrick. “We expect that over time, this could lead to an increase in the amount of public funds available for SDG-related programs.”
Among the selected NGOs One acre fundWhich helps smallholder farmers in Africa in the vicinity of climate action, including further planting and protection.
Its goal is to support the survival of 44 million trees planted in four years, resulting in the separation of 7.4 million tons of carbon. If successful, the plan could scale to more than 1 billion trees in the next decade.
Other funds will focus on malaria detection and treatment; Improving literacy and numbers for children in crisis situations; Provide access to clean water; Bringing marginalized women out of poverty; And improving food security. – Reuters