Transformation 7:

Financing the Future

7 Transformations

5 Global challenges

Examples of change

Red Cross making volcano cat bond progress

The Red Cross is making progress with their first-ever catastrophe bond…

Read story

Insurance for Disasters and Displacement Crises

Disaster risk insurance and displacement insurance can provide a more reliable source of funding for disaster preparedness and relief activities

Read more

How Governments have used this mechanism

Indonesia Tackles Climate Change Through the Issuance of Green Sukuk (Islamic Bond)

The Government of Indonesia issued in February the world’s first sovereign green sukuk (Islamic bond).

Read more

African Risk Capacity (ARC) – Disaster Risk Insurance

This agency aims to support African governments to improve their preparation and response to disasters.

Read more

7 Transformations

The consultations indicate seven potential transformations that the IFRC network will need to embrace in order to rise to the 5 global challenges

This focus performance is underpinned by two major drivers.

  1. The urgent need to attract, develop and diversify sources of funding for National Societies who are at risk of being left behind.
  2. The need for an independence of agenda. If an organisation is over-reliant on any one source of funding, there is a risk that its work can become driven by the body providing the money.

Resource mobilisation efforts will be developed in coordination with and in complementarity to wider efforts at National Society development. A revision of the principles around international cooperation on resource mobilisation to support more global and cross-border initiatives will also be required. As the financing landscape changes, along with technological advances and public/donor expectations for more direct and transparent impact giving, the national fortressing of resource mobilisation activities will need to open up

Second, the need to broaden the focus from fundraising to financing and investing in the exploration of a range of innovative and new financing mechanisms, including fintech opportunities

However, diversifying our financing approaches is a complex activity that will require substantial upfront investment and a recognition and effort that it will involve a change to who we partner with, the skills required and the way we partner, the way we design and manage services, and how we manage our finances.

Related content

MONEY MATTERS: DELIVERING CASH TO PEOPLE IN CRISIS

By David Peppiatt, Director of Humanirarian Cash, British Red Cross

Read more

PROMOTING FINANCIAL SUSTAINABILITY THROUGH DIVERSIFIED FUNDING AND PARTNERSHIPS

Extract from the priority areas identified throughout the S2030 consultations

Read more

Future of finanancing

Extract from the thematic futures report.

Read more

7 Transformations

The consultations indicate seven potential transformations that the IFRC network will need to embrace in order to rise to the 5 global challenges

This focus performance is underpinned by two major drivers.

  1. The urgent need to attract, develop and diversify sources of funding for National Societies who are at risk of being left behind.
  2. The need for an independence of agenda. If an organisation is over-reliant on any one source of funding, there is a risk that its work can become driven by the body providing the money.

Resource mobilisation efforts will be developed in coordination with and in complementarity to wider efforts at National Society development. A revision of the principles around international cooperation on resource mobilisation to support more global and cross-border initiatives will also be required. As the financing landscape changes, along with technological advances and public/donor expectations for more direct and transparent impact giving, the national fortressing of resource mobilisation activities will need to open up

Second, the need to broaden the focus from fundraising to financing and investing in the exploration of a range of innovative and new financing mechanisms, including fintech opportunities

However, diversifying our financing approaches is a complex activity that will require substantial upfront investment and a recognition and effort that it will involve a change to who we partner with, the skills required and the way we partner, the way we design and manage services, and how we manage our finances.

Examples of change

Red Cross making volcano cat bond progress

The Red Cross is making progress with their first ever catastrophe bond transaction, revealing a tiered trigger structure designed to ensure that impactful volcanic eruptions cause the cat bond to pay out.

Read story

Insurance for Disasters and Displacement Crises

Disaster risk insurance and displacement insurance can provide a more reliable source of funding for disaster preparedness and relief activities

Read more

How Governments have used this mechanism

Indonesia Tackles Climate Change Through the Issuance of Green Sukuk (Islamic Bond)

The Government of Indonesia issued in February the world’s first sovereign green sukuk (Islamic bond).

Read more

African Risk Capacity (ARC) – Disaster Risk Insurance

This agency aims to support African governments to improve their preparation and response to disasters.

Read more

Related content

MONEY MATTERS: DELIVERING CASH TO PEOPLE IN CRISIS

By David Peppiatt, Director of Humanirarian Cash, British Red Cross

Read more

PROMOTING FINANCIAL SUSTAINABILITY THROUGH DIVERSIFIED FUNDING AND PARTNERSHIPS

Extract from the priority areas identified throughout the S2030 consultations

Read more

Future of finanancing

Extract from the thematic futures report.

Read more

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