Giving Compass' Take:
- AVPN shares seven insights for first-time pooled fund managers after setting up their own to help strengthen healthcare systems responding to COVID-19.
- How can collaborative funding that is flexible and strategic be meaningful? How can individual donors embark on pooled giving?
- Understand more about pooled fund models.
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Traditionally, it has been difficult to motivate Asian funders to commit to cross-border or regional social-change efforts. Most have wanted to focus on pressing needs in their own backyards, and successful collaborations have often remained bilateral, project-driven, and non-formal. While the concept of pooling resources has been around for more than a century, Asia has been slow to catch up to the west in terms of volume, scale, and verifiable results of joint philanthropic efforts.
For AVPN, taking on a pooled fund was a great opportunity—and a risk. It would be the first time our team would take on structuring and disbursing grants. In addition, there was no precedent of similar pooled funds in the region for us to learn from. “Funding collaboratively is a new idea to many donors, particularly in Asia,” said Macquarie Group Foundation’s Susan Clear. “Being part of this initiative was also an opportunity to work alongside like-minded funders to drive this innovative initiative and support local organizations and communities.”
We embraced the challenge, deciding that a lack of experience did not equate to a lack of expertise but also knowing that time was not in our favor. Many funders had dedicated COVID-19 funds they wanted to make available as quickly as possible. We gave ourselves six months to develop the framework and structure, pitch the idea, and confirm funding. We committed to two core principles: permanently strengthening primary health-care systems and deploying unrestricted funding.
As a team, we continue to learn daily. Below, are seven lessons that may help other first-time pooled fund managers:
- Acknowledge That You (Mostly) Start From Scratch
- Assess Your Team’s Capacities and Build Robust Processes
- Connect Funder and Fundee Needs
- Understand That Developing One Solution Doesn’t Equate to Addressing One Problem
- Regulate the Complexity of Your Fund
- Articulate the Value Proposition of Your Fund
- Learn to Articulate the Value Proposition of Yourself as a Fund Manager
Read the full article about pooled funding by Caroline McLaughlin, Denderah Rickmers and Amanda Kee at Stanford Social Innovation Review.