Foundation for the Philippine Environment Teresita C
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The Synergos Institute Voluntary Sector Financing Program Case Studies of Foundation-Building in Africa, Asia and Latin America Foundation for the Philippine Environment Teresita C. del Rosario 1997 The preparation of this series of case studies No part of this publication may be reproduced was made possible by support from the Ford or transmitted in any form or by any means Foundation, the Aspen Institute, the C.S. Mott without the permission of The Synergos Insti- Foundation and the Compton Foundation. tute. Foundation for the Philippine Environment Voluntary Sector Financing Program Case Studies: • The Foundation for the Philippine Environment • The Esquel Ecuador Foundation (Fundación Esquel-Ecuador) • Child Relief and You - CRY (India) • Foundation for Higher Education (Colombia) (Fundación para la Educación Superior - FES) • Philippine Business for Social Progress • The Puerto Rico Community Foundation • The Mexican Foundation for Rural Development • The Kagiso Trust (South Africa) Cross-Case Analyses: • Formation and Governance • Organizational Financing and Resource Generation • Program Priorities and Operations Contents Sources 40 Synopsis 1 Charts Preface 3 1: Timetable of Activities 14 Genesis and Origins 6 Background 6 Tables Multiple Motivations and Intersecting 1: Summary of Grants Approved: Interim Agendas 7 Grant Period July 1992 - December 1993 23 FPE’s Form and Funding 9 2: Summary of Interim Board Decisions Steps to Establish FPE 10 on Project Proposals July 1991 - June 1992 27 Governance 13 3: Number of Grants Provided According to Program Scope (as of Mission and Vision 13 December 1993) 28 The Foundation’s Governance Structures 15 4: Distribution of Grant Beneficiary Groups by Sector (as of Program Operation and Evolution 19 December 1993) 29 The Interim Board Grants Program (IGP) 19 5: Distribution of Grantees by Types Evolution of Funding Mechanisms of Organization 29 for Program Support 21 6: Summary of Grants Approved by Staffing 32 Funding Category January - December 1994 30 7: Summary of Debt Swap Conversions 36 Financing FPE 34 Sources of Financing 34 Annexes Fundraising Methods 35 1: FPE Organizational Chart 42 Financial Management 36 2: Board Of Trustees (1992 - 1996) 43 Technical Assistance with Financial Manage- 3: The Debt-Swap Mechanism 44 ment 36 Investment Management of the Endowment 37 Conclusion 38 Lessons Learned 38 Challenges 38 Foundation for the Philippine Environment Glossary of Acronyms AGF Action Grants Fund DENR Philippine Department of Environment and Natural Resources DOF Department of Finance EAP Expert Advisory Panel FPE Foundation for the Philippine Environment IGP Interim Grants Program MOU Memorandum of Understanding NGO Nongovernmental organizations NRMP Natural Resources Management Program PBSP Philippine Business for Social Progress PCJC Philippine-Canadian Joint Committee PDF Philippine Development Forum PDME Project development monitoring and evaluation PO People’s organization RAC Regional Advisory Council RCC Regional Consultative Council RSA Rapid site assessment SEC Philippines Securities and Exchange Commission USAID United States Agency for International Development WWF World Wildlife Fund Synopsis tions that led the creation of FPE (WWF - the World Wildlife Fund and the Philippine Busi- Formation ness for Social Progress, a foundation created The Foundation for the Philippine Environment by Philippine corporations). Foreign assis- (FPE) was legally established in January 1992 tance of about US$18 million was used to through the quadrilateral efforts of environ- purchase debt valued at about US$29 million. mental and development NGOs in the Philip- Currently, FPE's endowment is worth US$23 pines and the US and government in each million. country (principally the US Agency for Interna- FPE has been careful not to compete for tional Development and the Philippine Depart- funds with Philippine NGOs, viewing itself as a ment of Environment and Natural Resources). fund-facilitator, not fundraiser. It turned down This process included extensive civil society an opportunity for funding from Switzerland consultations in the Philippines — eight formal that it felt might better go to other organiza- regional consultations were held and national tions. conferences of eight major NGO networks were also used to obtain opinions and owner- ship of the Foundation within sector. In total, Governance over 300 NGOs and two dozen academic FPE has a Board of Trustees and three region- institutions were engaged in the process. al advisory councils (RACs). The board is the sole policymaking body of the Foundation and Some tensions arose in the first year of the is composed of eleven members including six Foundation over its program focus — USAID regional representatives, four "at large" repre- pushed for an emphasis on biodiversity con- sentatives and a representative of WWF. The servation, while many Philippine NGOs felt government of the Philippines is represented that the focus should be more locally deter- in an ex-officio capacity. The board has an mined. Ultimately the program embraced both executive committee and advisory committees biodiversity conservation and sustainable on finance and administration, governance, development. and program development. The founders of FPE also consulted widely The three RACS with a total membership of with international actors and conducted a about 60 people ensures that the Foundation study tour on philanthropy, funded by the Ford receives good proposals from the major Foundation, to expose the new organization's regions of the country and avoids the dangers initial governing board to US organizations of a Manila centered organization. with expertise in foundation formation, gover- nance and grants management. Programs In 1993, FPE disbursed over US$1.5 million in Financing grants through a variety of grant mechanisms The process of creating FPE's endowment that include responses to proposals and pro- took over three years — from the beginning of active grants the Foundation makes on issues negotiations between the governments in it deems of importance. 1991 to the 1994 turnover of the completed debt swap to the two civil society organiza- FPE also acts as a fund facilitator, generating 1 Foundation for the Philippine Environment additional financial resources and providing financial linkages between donors and Philip- pine NGOs and people's organizations. As a catalyst for cooperation, FPE is active in encouraging international and local coopera- tion among communities, governments, busi- ness groups, and NGOs. 2 Preface tions. In general, they differ in many ways from their northern counterparts . For exam- Background ple, they are more likely to mix program oper- In Africa, Asia and Latin America, citizen par- ation with grantmaking. Many of them act as ticipation through a range of civil society orga- convenors of civil society groups, as bridging nizations has become a growing and vital institutions to other sectors of society or as force. Civil society organizations have brought technical assistance and training providers. significant material and human resources from the community level to bear on poverty prob- To distinguish this type of southern founda- lems through donations of time, energy, mate- tion-like organization from northern founda- rials and money. tions we can use a term such as "community development foundation" or "southern founda- Locally managed and controlled organizations tion" or use a new term. One new term which that provide direct financial support to other has been proposed is "civil society resource organizations within their societies have been organization" or CSRO. This term refers to established over the last decade in many organizations which combine financial assis- southern countries. A few were established tance to community-based organizations and twenty NGOs with other forms of support for organiza- or thirty years ago. These organizations are tions or the civil society sector as a whole. In injecting critical financial as well as technical this series of papers we resources into local civil society and mobiliz- will use the terms "foundation" and "civil soci- ing resources from a wide variety of sources ety resource organization"interchangeably. both domestic and international for this pur- pose. This expanding universe of foundations/civil society resource organizations around the Few of them were created with a single large world has not been systematically studied. As endowment, as was the case with most north- one one of the first steps towards developing ern private foundations. Most of them rely on an understanding of this sector, Synergos a wide range of strategies to mobilize financial responded to a request from a group of resources including earned income contribu- southern foundations. In April 1993, a group tions from individuals and corporations and of foundations from a dozen southern coun- grants from international organizations. Some tries met with northern foundations and official managed donor-designated or donor-advised foreign aid agencies to discuss the emerging funds following the U.S. community founda- role of foundations in strengthening civil soci- tion ety in Africa, Asia and Latin America. A major experience. outcome of the discussion was a decision to General consensus over terminology has yet learn more about how these organizations are been reached; these new types of organiza- created, how they develop and evolve, and tions are usually referred to as "foundations"