Innovative Finance

How NGOs make use of new ways of financing development

Posted in: Civic Power
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The traditional instruments of financing development seem to be insufficient or inadequate to face the current development challenges. Accordingly, innovative financing instruments are popping up everywhere in the development sector, which makes it difficult for NGOs to orient in this field. On request of members of The Spindle community, a Community of Practice on Innovative Finance was formed This Community of Practice on Innovative Finance for Development aims at facilitating an open exchange on the topic and exploring the opportunities, challenges and impact of these innovative financing instruments.

Innovative financing instruments are popping up everywhere in the development sector, which makes it difficult for NGOs to orient in this field. On request, a Community of Practice on Innovative Finance was formed.

Innovative Finance

Financing mechanisms are not only important to improve the financial resilience of NGOs, but can also improve the way money is spent on their projects and activities. Whether they are (un)conditional cash transfers or revolving funds, organisations within development cooperation may benefit from these innovative mechanisms.

The Community of Practice on Innovative Finance
In the year 2019, The Spindle is organising a number of sessions on how different organisations in the field are working with innovative ways of financing development. Each session will touch upon on one or two innovative financing instruments that are currently being explored, experimented or implemented. The Community of Practice exists of a variety of participants. Not only are member NGOs invited, consultants, journalists and other (private) actors are also welcome.

The main goal of these meetings is to exchange on the topic, discuss experiences and share success stories and failures as to identify opportunities and pitfalls and formulate recommendations regarding each financing instrument. Examples are social franchise and performance-based financing. While the sessions’ setting is confidential, the main insights and lessons learnt will also be shared in the form of reports on our website.

Upcoming publication on Innovative Finance
Next to the sessions, The Spindle supports a publication on Innovative Finance. Two journalists developed an accessible publication which showcases inspiring frontrunners and their innovative approaches. The following themes have been discussed during the sessions and will also be treated in the publication: impact bonds, social franchise, (un)conditional cash transfers,

result-based finance, local fundraising, blended finance, social entrepreneurship, impact investment, and (green climate) funds. The publication will be shared in (early) 2020.

Want to get involved with our community?
We’re always looking for new instruments that might be of interest for new meet-ups. Instruments such as service contracting, social venture, public-private partnerships and legal entities. In consultation with members of the community, we’re open to schedule new sessions and discuss new topics.

If you’re interested in learning more about our activities or if you want to read more about innovative finance:


Here you will find other resources!

Annewies Kuipers
Annewies Kuipers
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