Innovation Fund

Alliance for Global Good

Round One Request for Proposals

Questions and Answers

Innovation Fund leadership on this call

• David Brand: Chief Operating Officer, AFGG35 year business experience; AFGG start-up co-founder.

• Jerry Chasen, Esq.: Vice President, AFGGLL.M. in Estate Planning—philanthropic advisor and counselor; Founder of the Advisors Project; Chair Community Projects Fund Distribution Committee, Miami Foundation

• Rodney W. Nichols: Senior Advisor to AFGGPast President, New York Academy of Sciences, and past VP and Executive VP of Rockefeller University

• Susan Raymond, Ph.D.: Executive Vice President, Changing Our World, Inc.

Design leader for Innovation Fund; experience at USAID and World Bank in program/loan design and execution; extensively published on philanthropic strategy

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Purpose of Innovation Fund

AFGG has created the Innovation Fund to enable medium-sized U.S.-based nonprofits engaged in global issues of health, education, environment, poverty, and world relations to begin to develop mission-relevantsocial finance mechanisms as part of their approach both to their own revenue needs and to the sustainability of programs that address the mission and problem-solving programs of the nonprofit.

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Process for Round One

• RFP Available May 30

• Submission of Proposal June 27

• Review Completed August 1

• Notification of Finalists By August 15

• Concept Detail Pitches September 19-20

• Grant Announcements October 1

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Round One Reviewers

• Dr. Carol AdelmanSenior Fellow and Director of the Center for Global Prosperity of the Hudson Institute; former Assistant Administrator of USAID. Dr.P.H. from Johns Hopkins University.

• Richard BendisFounding President and CEO of Innovation America (IA); President and CEO at BioHealth Innovation Inc.; Member of the White House U.S. Innovation Partnership Advisory Task Force.

• Antony Bugg-LevineCEO Nonprofit Finance Fund; former Managing Director at the Rockefeller Foundation; Board Chair of the Global Impact Investing Network.

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Structure of Q&A

• Revenue Criteria

• Program Content and Geography

• Application Process

• Grant Award

• Other

• Additional questions keyed in on prompt from presentation.

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Revenue Criteria

Question 1

Could you clarify the revenue size of eligible nonprofits?

The Innovation 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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Question 2

Is there a minimum revenue size?

No. We care deeply about big ideas, even if the organization is small. The review will, however, carefully examine evidence of the viability of the proposal in terms of capacity to execute.

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Question 3

Can an Institute of a University apply if its revenue is within the acceptable range although the University is not, and if the Institute is not a separate 501(c)3?

Yes. However, we would want to see that the Institute is operated, in effect, as a wholly owned subsidiary with programmatic 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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Question 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 monetized value of in-kind donations?

The Fund agrees that two categories of revenue can be subtracted from total revenue in determining eligibility:

• the monetized value of in-kind contributions • contributions to dedicated scholarship funds

Other financial structure exceptions will be dealt with on a case-by-case basis via email inquiry until June 15. Answers will be circulated.

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Question 5

In terms of innovation, must this be in the area of earnings, or does innovation in the investment of assets qualify?

The goal of the Fund is to promote innovation in the development of sustainable revenue sources. Therefore, innovation in the use of assets to meet revenue and mission needs qualifies as innovation for purposes of the application.

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Program Content and Geography

Question 6

Can an organization less than 10 years old apply?

The 10 year requirement is a safe harbor to focus on organizations that are not start-up. If the applicant can demonstrate stability and program maturity in less than ten years, and has five years of stable revenue (as is also required), then the application will be considered.

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Question 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 activity that is in a nation on the U.S. Treasury boycott list. There are no other geographic preferences.

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Question 8

Can proposals be for programs within the United States?

No. The program actions and effects must be abroad. However, program management and administration can, but does not have to, be in the United States. Moreover, a partnership of a U.S. nonprofit with domestic programs and a U.S. nonprofit with international programs for an overseas initiative using the capacities of both is well within the intent of the Fund.

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Question 9

Must the program be within one of the areas, or can it be across areas?

The Innovation Fund looks extremely favorably on programs and strategies that are purposefully and deeply inter-sectoral.

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Question 10

Please discuss more fully how advanced an initiative must be to qualify for the competition.

The proposal should indicate the expected time frame for implementation of the proposal. Ideally, the Fund would anticipate the innovation would be implemented within 6 – 12 months of the grantee’s receipt of funds.

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Question 11

Are there restrictions on the use of funds?

Regarding various categories

• Market research can be funded if it is at-market end-stage to finalize a strategy or product that is revenue diversifying. However, the Fund is focused on getting previously designed ideas to market. Therefore, preliminary market research would likely not be funded.

• See RFP for the restrictions on salary allocations.

• Funds can be used to pay consultants or professional advisors. Again, the distinction is at the go-to-market phase.

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Question 12

Does this have to be a new funding stream, or can it be an improvement to, or scale up of, an existing innovation or a new application or version of an existing innovation?

Adaptations or expansions of existing innovations are within the interest areas of the Fund.

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Question 13

Can the innovation be focused on programs or policies, rather than on finance or revenue?

No. The focus is on revenue diversification and stabilization through strategies that are outside of traditional charitable philanthropy.

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Question 14

What are the reporting requirements and timeframes?

Brief letter 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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Question 15

How specific does the quantitative measure of impact have to be?

We leave this up to the applicant. Not all results can be called “impacts” especially where problems are extremely complex. However, assessment of proposals will consider both how an organization defines “results” and the quality of that data.

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Application Process

Question 16

Must the proposal be submitted through the web-based system?

Yes.

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Question 17

Are audited financial statements required? Can they be submitted before the oral pitch if that coincides with the fiscal year? Many small organizations do not have these, but do have full Form 990 tax submissions.

Where there is an audited financial statement, the Fund requires the submission of the most recent one, regardless of fiscal year. Where there is no audited statement submitted, if the proposal gets to the pitch stage, the financial statements will be vetted more thoroughly and any financial issues arising may result in withdrawal of the invitation to pitch.

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Question 18

How much detail is required relative to past studies of innovation market and viability? Should studies be attached?

Studies can be summarized such that the reviewers can determine how close to implementation the innovation is.

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Question 19

Are third party recommendations accepted?

Yes, if they are embedded in the proposal (taking into account limitations on length of answers). They are not required in the proposal stage. Of course, oral pitch content can include as many endorsements as desired. The critical element at all stages is the quality and evidence relative to the initiative.

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Question 20

Is the oral pitch required?

Yes. It must be attended by senior executives as described in the RFP. Travel expenses will not be defrayed by the Fund. If long distances for primary executives are an impediment, the Fund will discuss alternatives (e.g., skype), but demonstration of the commitment of executives and boards are required.

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Grant Award

Question 21

What is the minimum and maximum grant size?

There is no minimum. The maximum grant for Round One is $60,000.

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Question 22

How many organizations do you expect will submit funding requests and how many grants will be awarded?

From this Round One cycle, no fewer than 3 grants will be made. As this is the inaugural grant cycle, there is no precedent from which to predict a likely number of applicants.

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Question 23

What is the timeline for grant disbursement? How long is the proposal for?

A proposal should outline the applicant’s optimum timeline 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 after the grant award, but shall be tied to the organization’s receipt of its matching funds.

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Other

Question 24

Are there restrictions on partnerships with for-profit organizations?

No. In fact, we would favor those in which the Fund is leveraged by financial participation by such a partner.

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Question 25

Can an organization submit a proposal to help other awardees scale their programs based on their grants?

No. The funds are for direct initiative execution.

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Question 26

What is the time commitment for the mentoring network?

This has not been specified. Round One awardees would not be asked to be mentors until Round Three. We would seek the guidance of Round One awardees on the design of the program.

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Additional Questions

Please key in any additional questions now.

Questions and answers reviewed on today’s call will be posted on the website. Additional questions can be submitted by email

through 5 pm (ET) Wednesday June, 13.38