Private philanthropy for the SDGs

Private philanthropy for the SDGs Insights from the latest OECD DAC statistics

January 2020

PRIVATE FINANCE FOR SUSTAINABLE DEVELOPMENT CONFERENCE 2020 Aligning Finance with the Sustainable Development Goals

OECD DAC Statistics on Private Philanthropy for Development Private philanthropy is reshaping the development landscape like never before. Foundations are playing an increasingly prominent role in supporting the Sustainable Development Goals (SDGs) as called for in the 2030 Agenda.

The OECD Development Assistance Committee (DAC) has proven experience in collecting data on development finance. DAC statistics are not limited to official development finance such as Official Development Assistance (ODA), but also include grant making and investments by private philanthropic foundations. The Bill and Melinda Gates Foundation started sharing data with the OECD in 2010. Since then, the Organisation has been engaging with other key foundations working for development to collect data and provide a more comprehensive picture of the sector.

The OECD DAC database on private philanthropy currently includes project-level information from 33 philanthropic foundations active in development. These open data are fully comparable with those reported by ODA providers and multilateral organisations, and offer many insights on foundations’ contributions to development and the SDGs more broadly. The OECD DAC statistics are therefore a unique source of information on broader development finance and contribute to forging better policies and better partnerships for the SDGs. This brochure highlights some of the main trends regarding philanthropic giving and investments in support of development over 2017-18.

3

Private philanthropic flows amounted to USD 7.8 bn in 2018 Private philanthropy compared to ODA in 2018

Private philanthropy, 2013-18 Gross disbursements, USD billion

Official development assistance (ODA)

6.1

2018 grant equivalent

3.3

USD 167.8 billion Private philanthropic foundations 2018 gross disbursements

USD 7.8 billion

7.3 6.5

3.6

4.1

2.8

2.9

3.3

2013

2014

2015

Source:

7.3

7.3

7.8

3.0 7.3

7.8

2017

2018

4.3

2016

Regular reporting Survey data, 2016 estimates

Data for 2017-18 relate to activities by 33 of the largest philanthropic foundations collected through the regular OECD DAC reporting system. Data for 2013-15 originate from regular reporting complemented with survey data from 130 foundations.

Data for 2016 are sources from the OECD DAC database and complemented with OECD estimates.

Source: OECD DAC Statistics

4 44

Foundations play a key role in financing the social sectors such as health and education Top providers in the health & reproductive health sectors, all developing countries

Top providers in the education sector in Africa

2017-18 average, gross disbursements USD billion

2017-18 average, gross disbursements USD billion

United States

8.8

Global Fund

3.8

33 private foundations

3.2

United Kingdom

1.8

GAVI, the Vaccine Alliance

1.5

World Bank (IBRD/IDA)

0.6

United States

0.6

France

0.4

Germany

0.4

United Kingdom

0.3

Germany

0.8

33 private foundations

EU Institutions

0.7

Canada

0.2

Canada

0.5

EU Institutions

0.2

WHO

0.5

Norway

0.1

Japan

0.5

Japan

0.1

IADB Group

0.4

AfDB

0.1

Netherlands

0.3

Italy

0.1

Korea

0.3

Korea

0.1

AsDB

0.3

Belgium

0.1

Norway

0.3

Australia

0.1

Health

Population and reproductive health

General

0.3

Sector-specific

Source: OECD DAC Statistics

5 5

The BMGF remains the main philanthropic provider, followed by the BBVA Microfinance Foundation Private philanthropy for development by provider, 2017-18 average, gross disbursements 3,903

17% 1,165

USD 7.5 billion

17%

2017-18 average

51%

Bill and Melinda Gates Foundation (BMGF) BBVA Microfinance Foundation Other American (United States & Canada) Other European foundations

15%

USD million

360 272 265

234 219

197

161

121 107

82 82 64 55 48 43 37 31 30 28 21 21 17 16 14 14 13 13 9

*

* United Postcode Lotteries include the Dutch, Swedish, Norwegian and People’s (UK) Postcode Lotteries

Source: OECD DAC Statistics

6

Africa remained the most targeted region, followed by Latin America, largely thanks to BBVA Microfinance Foundation Private philanthropy by region, 2017-18 average, gross disbursements

ASIA & OCEANIA

EUROPE

USD 1.0 billion 13%

USD 0.03 billion 0.3%

LATIN AMERICA

37%

USD 1.4 billion 19%

14%

44%

33%

63%

3%

56%

83%

67% AFRICA USD 1.8 billion 24%

Global, unallocated USD 3.3 billion; 44%

Private philanthropy by income group, 2017-18 average, gross disbursements USD million UMICs LMICs Other LICs LDCs

1,074

20

1,524

757

BMGF

BBVA MF Fnd

Other

Source: OECD DAC Statistics

7

Philanthropic flows were highly concentrated, with almost 24% of total funding allocated to 5 countries Private philanthropy by recipient country, 2017-18 average, gross disbursements

Beyond the DAC List of ODA Recipients

2% 5%

5%

max

min

3%

9%

Top 20 recipients of philanthropic funds, 2017-18 annual average, gross disbursements

USD million

673 403

363 205

144

134

128

123

101

97

89

84

58

55

54

46

38

36

35

34

Source: OECD DAC Statistics

8

Health was still by far the main sector targeted Private philanthropic flows by socio-economic sector, 2017-18 average, gross disbursements USD million

Social infrastructure and services (57.5%)

HEALTH & REPRODUCTIVE HEALTH GOVERNMENT & CIVIL SOCIETY EDUCATION OTHER SOCIAL INFRA. AND SERVICES WATER AND SANITATION

Production sectors (19.6%)

AGRICULTURE, FORESTRY & FISHING TRADE (retail, wholesale, policies) INDUSTRY, MINING, CONSTRUCTION TOURISM

Economic infrastructure and services (7.8%)

BANKING AND FINANCIAL SERVICES BUSINESS AND OTHER SERVICES ENERGY TRANSPORT AND STORAGE COMMUNICATIONS

Cross-cutting (5.2%)

ENVIRONMENTAL PROTECTION OTHER MULTISECTOR

Humanitarian aid (1.6%)

HUMANITARIAN AID

Other (8.3%)

Other, unallocated, debt relief BMGF

491.0 (6.5%) 352.0 (4.7%) 210.5 (2.8%) 126.4 (1.7%)

3,155.8 (41.8%)

815.1 (10.8%) 514.9 (6.8%) 125.4 (1.7%) 21.0 (0.3%) 220.4 (2.9%) 128.9 (1.7%) 109.8 (1.5%) 106.6 (1.4%) 25.7 (0.3%) 295.4 (3.9%) 93.9 (1.2%)

122.1 (1.6%)

BBVA MF Fnd

629.6 (8.3%) Other

Source: OECD DAC Statistics

9

Foundations mainly partner with civil society organisations and research institutes Private philanthropy by channel of delivery, 2017-18 average, gross disbursements

24%

NGOs & civil society

Universities, research institutes, think tanks etc.

16% Multilateral organisations

$

Public-private For-profit private sector partnerships

21%

(PPPs) and networks

Other channels

Partner countries

33 philanthropies

33%

2%

4% Source: OECD DAC Statistics

10

Foundations also provided finance in the form of investments (16.3%) Philanthropic investments*, 2017-18 average, gross disbursements

By provider

By main sector

1,165

Equity instruments Debt instruments

71%

2%

USD

1.2 bn

10%

USD million

(16.3%) 17%

5

3

2

CIFF

Hilton Fnd

Rockefeller Fnd

BMGF

Dell Foundation

Grameen CA Foundation

BBVA Microfinance Fnd

14 10 6

Omidyar Network Fund, Inc.

37

Social infrastructure and services Economic infrastructure and services Production sectors Other * Philanthropic investments include foundations’ programme-related investment (PRIs), mission-related investments (MRIs), impact investments and other nongrant activities administered with the promotion of the economic development and welfare of developing countries as the main objective.

Source: OECD DAC Statistics

11

Foundations mostly focus on SDGs 2, 3, 5, 8 and 11* Private philanthropy towards the SDGs, 2018 commitments USD billion

3.3

1.9

1.8

1.8

0.5

0.4

0.4

0.3

0.2

0.2

0.1

Cross-cutting

0.6

Cross-cutting

0.9

Cross-cutting

1.3

SDG 3 SDG 11 SDG 5 SDG 8 SDG 2 SDG 16 SDG 13 SDG 4 SDG 15 SDG 7 SDG 6 SDG 12 SDG 14 SDG 9 SDG 1 SDG 10 SDG 17

Other

BMGF

BBVA Microfinance Fnd

*: Methodology: Data reporting on the SDG focus (Creditor Reporting System), complemented with OECD analysis. Individual activities may target multiple SDGs. Amounts per SDG in this chart should therefore not be added up. SDGs 1, 10 and 17 are considered crosscutting. SDG data are only available for 2018 commitments.

Source: OECD DAC Statistics

12

Philanthropy for SDG 3: USD 3.3 billion in 2018 USD million, 2018 commitments

Geographic distribution

Beyond the DAC List of ODA Recipients

max

min

Top foundations BMGF Wellcome Trust CIFF UPL Rockefeller Fnd Packard Fnd Hewlett Fnd MasterCard Fnd MacArthur Fnd Hilton Fnd World Diabetes Fnd Oak Fnd Other foundations

39 35 28 17 14 12 11 11 29

Main sectors targeted 192 163

275

2,486 Reprod. health

65% 24%

5%

6% Health

Energy

Other

1% 2%

Agriculture, forestry & fishing

1% 2%

Government & civil society

Water & sanitation

Source: OECD DAC Statistics

13

Philanthropy for SDG 4: USD 528 million in 2018 USD million, 2018 commitments

Geographic distribution

Beyond the DAC List of ODA Recipients

min

Main sectors targeted

Top foundations LEGO Fnd UPL BMGF MasterCard Fnd Dell Foundation Ford Foundation Rockefeller Fnd Hilton Fnd Carnegie Corp.

Citi Fnd Hewlett Fnd CIFF Other foundations

51 38 29 25 23 17 14 12 11 10 46

Source: OECD DAC Statistics

max

129 124

Humanitarian Other 3% aid Economic 10% infrastructure 4% and services

17%

Post-secondary education Secondary 5% Level education unspecified

9%

66%

Other social sectors* HEALTHEducation

22%

33% Basic education

* Health and reproductive health, government and civil society, water and sanitation and other social infrastructure and services

14

Philanthropy for SDG 5: USD 1.8 billion in 2018 USD million, 2018 commitments

Geographic distribution

Beyond the DAC List of ODA Recipients

min

Main sectors targeted

Top foundations BMGF BBVA MF Fnd UPL Ford Fnd CIFF Oak Fnd Grameen CA Fnd Hewlett Fnd Packard Fnd Wellcome Trust Comic Relief Rockefeller Fnd Other foundations

79 71 47 37 37 35 14 12 12 41

142

max

575

703 Economic infrastructure and services

Other 8%

8% Agriculture, forestry & fishing 9% 40% Other social 5% infrastructure and services 13% 17% Government Trade & civil society

Health & Reproductive health

Source: OECD DAC Statistics

15

Philanthropy for SDG 15: USD 389 million in 2018 USD million, 2018 commitments

Geographic distribution

Beyond the DAC List of ODA Recipients

min

Main sectors targeted

Top foundations Moore Fnd Oak Fnd UPL Packard Fnd MAVA Fnd Hewlett Fnd Arcus Fnd MasterCard FND Other foundations

max

102 84 83 46

Other

8%

34 14 11 4 10

Economic Infrastructure & services

22%

50% 20%

General environmental protection

Agriculture, forestry & fishing

Source: OECD DAC Statistics

16

Focus on Africa: USD 1.8 billion on average in 2017-18 Top 10 recipients

Top foundations

2017-18 average, gross disbursements, USD million

2017-18 average, gross disbursements, USD million 1,026

205 123

101

97

84

Main sectors targeted

South Africa

Uganda

Tanzania

Kenya

Ethiopia

35

34

2018 commitments, USD million

See page 12 for a methodological note on the SDG focus.

384

AGRICULTURE, FORESTRY, FISHING

233

EDUCATION

108

GOVERNMENT & CIVIL SOCIETY

91 57

WATER SUPPLY & SANITATION

38

OTHER SOCIAL SECTORS

34

OTHER SECTORS

38

822

HEALTH AND REPRODUCTIVE HEALTH

ENVIRONMENT PROTECTION

55

Top SDGs

2017-18 average, gross disbursements, USD million

BANKING & FINANCIAL SERVICES

Nigeria

BMGF MasterCard Fnd CIFF Wellcome Trust Ford Fnd Hewlett Fnd Comic Relief MAVA Fnd Hilton Fnd Rockefeller Fnd UPL MacArthur Fnd Oak Fnd Carnegie Corporation Packard Fnd Grameen CA Fnd Gatsby Char. Fnd Dell Fnd ONF Arcus Fnd

73 64 55 41 39 37 35 34 30 24 19 16 14 14 13 11 9 8

Senegal

128

Zambia

56%

DR of the Congo

44%

BMGF Other foundations

Ghana

268

61

Source: OECD DAC Statistics

17

Focus on South Asia: USD 665 million on average in 2017-18 Recipients

Top foundations

2017-18 average, gross disbursements, USD million

2017-18 average, gross disbursements, USD million 500

403

25% 75%

29

134

11 11 8 8 7 7 6 5 5 5 3 2 2 2

Main sectors targeted

GOVERNMENT & CIVIL SOCIETY WATER SUPPLY & SANITATION EDUCATION ENERGY OTHER SOCIAL SECTORS OTHER SECTORS

2018 commitments, USD million

See page 12 for a methodological note on the SDG focus.

392

HEALTH AND REPRODUCTIVE HEALTH BANKING & FINANCIAL SERVICES

20 19 6 3

Top SDGs

2017-18 average, gross disbursements, USD million

AGRICULTURE, FORESTRY, FISHING

46

India Pakistan Bangladesh Afghanistan Myanmar Nepal Sri Lanka

14 14

BMGF CIFF Dell Fnd Hewlett Fnd C&A Fnd Ford Fnd Packard Fnd Oak Fnd Omidyar Net. Fund MacArthur Fnd Rockefeller Fnd Wellcome Trust UPL LEGO Fnd H&M Fnd Grameen CA Fnd Metlife Fnd Citi Fnd Comic Relief World Diabetes Fnd

21 19

BMGF Other foundations

59 39 37 36 33 18 16 35

Source: OECD DAC Statistics

18

Examples of other large foundations active in development not yet reporting to the OECD Gross disbursements Open Society Foundations

Howard G. Buffett Foundation

USD 268.9 million in 2017-18 on average

USD 125.0 million in 2017-18 on average

Other (5%)

80%

Other 7% Education 3% Agriculture 5% Health 6%

Government & civil society (human rights, rule of law, civil society)

20% South of Sahara

MENA 6% 11%

South & central Asia Europe 6% 8%

Latin America

Government & civil society (36%) - rule of law, human rights (21%) - demining (15%) 59% Agriculture

Rwanda

AFRICA AMERICA 45%; Unallocated

OTHER

Colombia 4.1

4%; Other Asia

Susan T. Buffett Foundation USD 298.3 million in 2017-18 on average

?

54.7 Other Latin America

Bloomberg Philanthropies USD 180.7 million in 2017-18 on average Health, general Infectious diseases 30% control; 14%

Multisector Population & reproductive health 100%

El Salvador

66.2

(urban management)

12% Other 12%

Health (76%) Reproductive health; 5%

Non-communicable diseases; 27%

Source: OECD Estimates

19

For online data: Private Philanthropy for Development (CRS), stats.oecd.org/Index.aspx?DataSetCode=DV_DCD_PPFD Creditor Reporting System (CRS), stats.oecd.org/Index.aspx?DataSetCode=crs1

For more information: oe.cd/foundationsdata www.oecd.org/dac/financing-sustainable-development/development-finance-standards/beyond-odafoundations.htm

Contact: cecile.SANGARE@oecd.org tomas.HOS@oecd.org

OECD Development Co-operation Directorate