INNOVATIVE FINANCING MECHANISMS
ENGAGE CONSUMERS WITHOUT THE "PINCH"
In a micro-donation campaigns, tiny sums on everyday transactions like grocery shopping are collected via the vendor's payment system. Similar to crowdfunding but on a different scale.
AIM TO SHARE THE BENEFITS OF
This mechanism involves a surcharge on a major economic activity, enacted by a government and earmarked for a specific cause. For example, an air ticket levy has raised billions for UNITAID.
FREE UP INTEREST PAYMENTS FOR INVESTMENTS IN SOCIETY
A creditor cancels specified debt on the condition that the budgeted and now freed-up interest payment is invested to achieve an agreed, verifiable social or developmental goal.
IS A WAY TO TRANSFER PUBLIC RISKS TO THE PRIVATE SECTOR
Risk insurance designed to pay out in the aftermath of a natural disaster can help with humanitarian assistance and the rebuilding effort. Premiums payments and reliable payout are key.
SOCIAL IMPACT BONDS
ARE INVESTMENT BETS ON AN AGREED SOCIAL OUTCOME
Social impact bonds are contracts between the (public) promoter and investors to achieve an agreed and then pass on the "savings" obtained by that outcome to investors as a financial return.
PARTNERSHIPS OFFER OPPORTUNITIES FOR PROGRESS
Often, the best ideas are innovations developed by start-ups. From food production to waste management, it is in our common interest to promote new solutions, help reduce the market risks and increase investment.
IS THE FUTURE IN PRODUCT POSITIONING
Campaigns that link consumer products to a good cause are engaging and effective. An example is PRODUCT (Red) brining together major brands, having raised over $600 million for the Global Fund to fight HIV/AIDS in Africa.