Innovative Finance for Development: Overview
Some InterAction members have experience in the design and management of innovative partnerships and financing models for their programs, but for a majority, this approach to development is uncharted territory. In a landscape where international non-governmental organizations (INGOs) are being challenged to adopt new financing approaches, leveraging new sectors and new forms of capital is critical to remain relevant and deliver on impact at scale.
To that end, InterAction has embarked on a project to understand and answer foundational questions about innovative finance for development. Our goals are to strengthen the INGO community’s ability to engage more deeply in innovative finance programming and to better understand its impact.
We recognize the key role INGOs play as financial intermediaries beyond the traditional grant-based model. As such, our new work will respond to essential questions, including:
- What range of financial instruments might serve as innovative financing mechanisms for development?
- How can INGOs incorporate these innovative mechanisms into their operational models?
- What are the key barriers or access routes to adopting new practices and approaches to financing?
- How can INGOs monitor, assess, and validate their programs’ outcomes and impacts?
InterAction Project Staff: