♣ Capital Fund

"♣": Estrategias específicas empleadas por los estudios de caso para incrementar su nivel de auto-sustentabilidad.Pueden estar en inglés o español. Por favor usa el traductor del menú lateral 

"♣": Specific strategies used by the case studies to increase their degree of self-sustainability.They might be in English or in Spanish. Please use the side menu translator
  • The Capital Fund Scheme:

 

  • [This/the initiative] uses a comprehensive scheme that includes several funding mechanisms that allow the organization to create a capital fund that yields interests to be used to finance the project.The establishment of a capital fund is an option that intends to avoid searching for annual funds but, instead, creates an investment fund that yields interests to be used to finance the project without touching the fund itself. If the fund is enough, there is no need to get more money. If not, or if the interests decrease, it will be necessary to keep up the search for donations. It can represent the whole or only a part of the budget needed for the project, but having a part makes it easy to get the rest because it gives certainty to the donors. This scheme can be discussed with the donors in the teaming contract.The fixed expenses, or those that can be calculated in advance, are paid with funding provided by donations and grants. For incidentals, they use the interest returns on fixed deposits (FDR) from a capital fund created by investing funds received in an earlier award. 
    • Finding children sponsorships: Sponsors are offered to pay $28 USD/month to sponsor a boy/girl of their choice, and are explained how their contribution is going to be used, and that it is going to be combined with others to attend to all children in the area and their community. Strategies to secure sponsorship include concerts, sending trained fundraisers to streets and malls to solicit sponsorship face to face, setting community funds for all children where children sponsors can also donate, etc.

     

    • Regarding the Capital Fund Scheme:

    Night Schools’ incidental expenses are being covered with the interests (FDR) of a capital fund set with an Award won by the[This/the initiative] , which means that the[This/the initiative] is already familiar with a sort of a Capital Fund (FDR) model. However this FDR is apparently used more as a strategy to give good use of the money awarded than as a concrete strategy to ensure the financial self-sustainability of the Night Schools. The empirical study indicated that for the last 2 years the[This/the initiative] didn’t manage to get donations for the program, and that, as a consequence, it is using not only the interests generated by the Award’s fund to sustain it but the fund itself.

     

    • Recommendation made in the[This/the initiative] Study:

    R3: Sustaining the Solar Night Schools Program with, exclusively, the interests generated by a Capital Fund could be an alternative for its financial self-sustainability. That would mean two things:

    1. That the funding’s strategy objective changes from searching for yearly funds to finding donations for an investment fund (the capital fund) selected with two criteria:

         a. that maximizes the interests; and

         b. that minimizes the financial risks.

    2. That money gathered from all sources to the program (including the suggested matching funds of R2) is used to pay the Night Schools’ expenses, and what is left invested in the capital fund (FDR) whose objective is to grow as much as possible so its interests can soon become another matching fund: the matching fund of the capital fund, thus attaining true financial sustainability.