Introduction

In an increasingly competitive funding environment, Innovative Finance for NGOs, particularly through mechanisms like Social Bonds and Impact Investing, represents a crucial paradigm shift for non-governmental organizations seeking to diversify their revenue streams and scale their impact beyond traditional grant funding. These forward-thinking approaches allow NGOs to tap into new pools of capital from investors who seek not only financial returns but also measurable social and environmental benefits. By aligning philanthropic goals with market-based solutions, innovative finance creates opportunities for sustainable growth, encouraging greater efficiency and accountability in the social sector. Without embracing the potential of Social Bonds and Impact Investing, NGOs risk limiting their reach, remaining over-reliant on conventional funding cycles, and missing out on the transformative power of private capital to address pressing global challenges. This essential training course focuses on equipping professionals with the expertise to master Innovative Finance for NGOs.

This intensive training course is meticulously designed to empower NGO leaders, finance officers, program managers, strategic planners, and social entrepreneurs with the theoretical understanding and hands-on practical tools necessary to explore, design, and implement innovative financing mechanisms. Participants will gain a deep understanding of the principles behind social bonds and impact investing, explore various deal structures, learn about attracting impact investors, and acquire skills in demonstrating measurable social impact and navigating financial complexities. The course will delve into topics such as outcomes-based financing, blended finance, due diligence for investors, legal and regulatory considerations, impact measurement and reporting, and building investor relationships. By mastering the principles and practical application of Innovative Finance for NGOs (Social Bonds & Impact Investing), participants will be prepared to unlock new funding opportunities, enhance their organization's financial resilience, and drive greater, more sustainable social change.

Duration: 5 Days

Target Audience

• NGO Executive Directors and Senior Management
• Finance and Resource Mobilization Managers
• Strategic Planning and Business Development Professionals
• Program Managers interested in scaling impact
• Social Entrepreneurs and Social Enterprise Leaders
• Board Members responsible for financial oversight
• Impact Measurement and Evaluation Specialists
• Partnership and Alliance Building Professionals
• Philanthropic Advisors and Consultants
• Anyone exploring alternative funding models for social good.

Objectives

• Understand the definitions and distinctions of innovative finance, including social bonds and impact investing.
• Learn about the types of social bonds (e.g., Social Impact Bonds) and their application for NGOs.
• Acquire skills in identifying and engaging potential impact investors.
• Comprehend techniques for structuring projects to attract innovative finance.
• Explore strategies for measuring and communicating social impact to investors.
• Understand the importance of legal, financial, and regulatory considerations in innovative finance.
• Gain insights into blended finance models and their potential for NGOs.
• Develop a practical understanding of building long-term relationships with new financial partners.

Course Content

Module 1: Introduction to Innovative Finance for NGOs

• The evolving landscape of development finance and the need for innovation.
• Defining innovative finance: beyond traditional grants and donations.
• Overview of key innovative finance mechanisms: social bonds, impact investing, blended finance.
• Benefits and challenges of innovative finance for non-profit organizations.
• Case studies of successful innovative finance initiatives by NGOs.

Module 2: Understanding Impact Investing

• What is impact investing? Blending financial returns with social/environmental impact.
• The spectrum of capital and the motivations of impact investors.
• Types of impact investments: equity, debt, quasi-equity.
• Key players in the impact investing ecosystem: funds, foundations, individuals.
• Aligning organizational mission with impact investor objectives.

Module 3: Social Bonds and Outcomes-Based Financing

• Introduction to Social Bonds (including Social Impact Bonds/SIBs): definition and structure.
• How SIBs work: role of outcome payers, investors, service providers, and evaluators.
• The "Pay-for-Success" model and its implications for NGOs.
• Identifying suitable projects for social bonds within an NGO's portfolio.
• Case studies of social bond projects and their outcomes.

Module 4: Structuring Projects for Innovative Finance

• Developing a compelling business case for social impact investments.
• Financial modeling and projections for social enterprises or outcomes-based projects.
• Identifying key performance indicators (KPIs) and measurable outcomes for investors.
• Risk assessment and mitigation strategies for innovative finance deals.
• Understanding different deal structures and contractual arrangements.

Module 5: Attracting and Engaging Impact Investors

• Researching and identifying relevant impact investors and funds.
• Crafting a compelling investment proposal and pitch deck.
• Due diligence requirements from an investor's perspective.
• Building relationships and trust with potential investors.
• Negotiation strategies for terms and conditions.

Module 6: Impact Measurement and Management for Investors

• The crucial role of robust impact measurement in attracting innovative finance.
• Aligning impact metrics with investor requirements and global standards (e.g., IRIS+, SDGs).
• Data collection, analysis, and reporting for social impact.
• The difference between impact measurement for internal learning and for external investors.
• Strategies for independent verification and assurance of impact data.

Module 7: Blended Finance and Public-Private Partnerships

• Introduction to blended finance: combining public/philanthropic capital with private investment.
• How blended finance can de-risk projects for private investors.
• Examples of blended finance structures relevant to NGO work.
• Navigating partnerships with governments, development finance institutions, and private sector entities.
• Legal and governance considerations in complex blended finance arrangements.

Module 8: Navigating Legal, Financial, and Ethical Considerations

• Understanding relevant financial regulations and compliance requirements.
• Legal structures for NGOs engaging in innovative finance (e.g., social enterprise models).
• Tax implications for various innovative finance instruments.
• Ethical considerations: ensuring mission alignment and avoiding mission drift.
• Building internal capacity and expertise for managing innovative finance initiatives.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.