Types of partnerships and programs supported by PEF
PEF primarily supports partnerships and programs that build, promote and scale up social enterprises.
PEF believes that successful SE programs and partnerships must be:
• Value chain-driven: to focus on the barriers and potentials of growth of the enterprise
• Business-oriented: to highlight partnerships between the private and public sectors and adoption of and compliance with standards such as fair trade, operating above break-even, certification of good governance or industry best practices
• Market-based: to ensure that products (food, non-food) and services (business development services, etc.) are responding to a real demand or market gap or adequately meeting the needs of consumers
• Development-focused: to ensure that the program will create social impact among rural households and communities as expressed in the PEF strategic plan. PEF, for example, will set up a “Climate Change Fund” to offer financing and business development services to programs related to climate-smart agriculture and renewable energy
PEF continues to support non-profit civil society organizations such as cooperatives, people’s organizations, non-government organizations, faith-based groups, and academic and private sector foundations. In pursuit of its new strategic direction, PEF will also actively develop and support partnerships with “for-profit social entrepreneurs.”
As in the previous years, PEF still strongly encourages its prospective partners to involve or secure the participation of relevant government agencies, local government units, and community-based traditional or sociocultural decision making units in the implementation of their projects.
Forms of development partnerships
The scope of partnerships will be expanded. Financial and business development services will be the key thrust in the development of and investment for social enterprises. Thus, PEF may provide management and business development services to an SE partner.
In view of its focus on social enterprises, PEF will also expand its modes of financial assistance to include fund management, guarantee agreement, joint ventures and equity partnerships. In the previous years, interest-bearing loans and grants were the main form of development financing assistance provided.
PEF also supports small projects that are in line with the Foundation’s institutional development thrusts. This may include small grant support for research and development, capability-building, development fora, technical assistance, and relief operations.
In financial partnerships, a 20 percent counterpart (cash, labor, materials, intellectual property valuations, research investments) on the total project cost will be negotiated with the prospective partner. The need for security for financial loans will be handled on a project-to-project basis.
Development of partnership and program proposals
The Foundation will take an active role in the development of proposals especially those related to SE. Prospective partners will be required to submit an Initial Project Outline (IPO). The IPO will determine the type of support that PEF will be able to provide.
Promising IPOs will then be jointly developed by PEF with business or SE experts to be selected by PEF and the prospective partner. The full SE Project Proposal must be approved by the board or decision-making unit of the prospective partner before it is finally submitted for the consideration of PEF.
PEF will adopt a “double due diligence” (3D) approach in the assessment of proposals. The business practices and/or performance, financial assumptions, governance, organizational structure and development track record of the prospective partner will be part of the project assessment criteria.
Submission of proposals
For the copy of IPO outline and IPO submission please send an email to firstname.lastname@example.org. Click here to download IPO outline and submission.