Funding Mechanisms for Sustainability

Don HarkerWallowa Resources & Blits Consulting

Martin GoebelSustainable Northwest

Outline

1. A few building blocks of ecoregional conservation2. Governance in different collaboration stages3. Critical aspects of funding4. One “hyper-innovative” funding idea5. Three group exercises

Caveats….• We have no definitive answers or formulas• We come with ideas • We want to engage you to discuss the nature of

collaboratives (and governance) in relation to funding

• Over the coming weeks/months we want to better document promising funding schemes and ideas with you

• Is there an innovation partnership?

Key Questions for Ecoregional Conservation

• What do we need to do?• Why do we need to do it?• Who will do it?• How can we fund what we need to do?• Will the new system be sustainable?

Basic Building Blocks in Eco-regional Conservation• System definition (ecoregion or landscape)• Collaborative structures development• System assessment (baseline)• Goal development• Strategy development (scenario planning)• Partner and resource mobilization• Steward and eco-business project implementation • Monitoring• Learning• Re-assessment • Re-investment

Enabling Conditions for Ecoregional Conservation

Enabling Condition 1: Clearly defined and understood ecoregionEnabling Condition 2: Strong, diverse local, regional and national leadership, constituencies and collaborative decision-making structures

Enabling Condition 3: Clearly defined and achievable goalsEnabling Condition 4: Institutional capacity to implement ecoregional governance and management

Enabling Condition 5: Value stream capture infrastructure Enabling Condition 6: Strong, active learning networks, monitoring and knowledge developmentEnabling Condition 7: Financial resources for ecoregional projects, businesses and system support

Enabling Condition 8: Supportive national, state and local policies

Economy

Environment

Community

What we have now…

Environment

Community/Equity

Economy

Premise:

“The economy is a wholly-owned subsidiary of the environment.”

--Theodore Roosevelt IV

Levels of Eco-regional Governance(and organization)

Traditional SystemicIntegrativeCollaborative

Funding SustainabilityEcoregional Impact

Operational Characteristics

Ideal—Integrative and Systemic Eco-regional Conservation Supports Economy;

Economy Support Eco-regional Conservation

Categories and Examples of Funding Sources/Mechanisms

(from traditional to innovative)• Foundations (private/community)• Government (budgets, Farm Bill, ODFW, special

legislation, OWEB, bond measures, Portland OSD)• Individuals (large and small)• Nonprofit organizations (place-based, regional &

national)• Corporations (Walmart, Coca Cola, Patagonia)• Ecosystem services (operational and capital offset, USE)• Collective websites (Shade Fund, Global Giving, Kiva)• Hyper-innovative (e.g., Values Market, social media,

watershed trusts)

All about collaborative funding through relationships…

Government

Non-Profit Business

Who are the Philanthropists?

2004 Contributions: $248.52 Billion by Source of Contributions

Corporations, 12.00, 5%

Bequests, 19.80, 8%

Foundations, 28.80, 12%

Individuals, 187.92, 75%

Source: Giving USA Foundation™- AAFRC Trust for Philanthropy/Giving USA 2005

Where does the money go?

2004 Contributions: $248.52 Billion by Type of Recipient

Education33.84, 13%

Health 21.95, 9%

Arts/culture 13.99, 6%

Unallocated 21.36, 9%

Human services

19.17, 8%

Public-society benefit, 12.96, 5% Envronment

7.61, 3%

International Affairs, 5.34, 2%

Foundatoins 24.00, 10%

Religion, 88.30, 35%

Source: Giving USA Foundation™- AAFRC Trust for Philanthropy/Giving USA 2005

Philanthropy and Impact

Funding Characteristics

What motivates donation of time and resources How to capitalize on motivationWhat motivates donation of time and resources How to capitalize on motivationWhat motivates donation of time and resources How to capitalize on motivation

Motivation WorksheetMotivations include fear, love, money, power, recognition, fame, legacy, future generations well being, self-interest

Markets Government Civil Society

Coordination, management, performance &

feedbackEco-

regional Funds

Designated Eco-region

Community Collab’s/Alliances/ConsortiaParticipating Nonprofits, Community Development Corporations, Community Foundations Working on Sustainable Community Development and eco-regional conservation

Values Market

BusinessesGovernment Civic GroupsIndividualsFoundations

Invested Funds

Invested Funds

Invested Funds

IndividualsFoundationsCorporations

Charitable FundsCommunity Foundations

General Sustainable Developme

nt Fund

Sponsoring Financial Institutions

Sponsoring Financial Institutions

Sponsoring Financial Institutions

Values Market Advised Fund

(one in each institution)

Sustainable Development

Outcomes (Environmental &

Economic)

Performance

•Individuals•Community Fdns.•Private Foundations•Family Foundations•Funder’s Networks•Charitable Funds

Donors/Investors

Values Market

Capital Aggregation

Eco-regionalStrategies

Donations/Investments

Performance Feedback

Values Market™ – How does it work?

ReefHealth

Tourism

FishingLocal

Economy

Reef FriendlyDevelopment

Reef ProtectingAttitudes

ReefKnowledge

Water ProtectingBehavior

Habitat ProtectingBehavior

HabitatQuality

Water quality

Fish Diversity

Coral Diversity

Water Temperature

Stability

ClimateStability

Mesoamerican Reef Protection Model

s

s

o

s

s

s

s

s

ss

ss

s

s

s s

s

o

s

s

s

Reef FriendlyAgriculture/Forestry s

s

s

Values Market

Eco-regional Conservation

GeographyPartnersIssues

StrategiesProjects

Resources needed

Searchable

Social Media

Facebook (74%)You Tube (47%)Twitter (43%)MySpace (26%)

Content Managed Website

Other social mediaFlickrLinkedinApps

Social Media

Enables nonprofits to:

•Streamline and improve communications•Develop responsive, audience specific communication•Connect on a deeper level•Focus on relationships•Provide “valuable” points of connection•Build community•Leverage every communication opportunity

It really is all about change through new “systemic” relationships…

Government

Non-Profit Business

Sustainable Communities /

Enterprises

Society

Economy Environment

Compact for Landscape Conservation

Media / Civic Journalism

Events / Forums

Society

Economy EnvironmentSEF ELF

Policy

Energy

Tourism

Com. Dev. Train &

Edu.

FisheriesFarming & Ranching

Env. Ser.

Forestry

1. Healthy ecosystems2. Vital and resilient communities3. Diverse sustainable economies

PublicOutreach

Pha

se 1

3-10

Yea

rs

Pha

se 2

10-2

0+ Y

ears

Sustainable LandscapeCollab’s/Consortia

Env. CPR $SustainableEnterprise $

Education & Leadership

Dev.

Pol.Anal. / Field Tours

Document & Disseminate

Models

Group Exercises

1. Motivations to support ecoregional conservation by sector

2. Funding mechanisms

3. Design hyper-innovative funding system