New impact funds aim to help end extreme global poverty

Global Citizen is inviting the world’s wealthiest to help more people and the planet faster by “donating in a new way”.

International advocacy organisation, Global Citizen, is launching six new impact funds to help accelerate progress towards achieving the UN sustainable development goals (SDGs).

The outcomes funds, which will directly link funding to verified results, will focus on education, equity, food security, health, sustainability, and water, with each fund mobilising up to US$1 billion.

The organisation hopes the new results-based funding model will allow organisations to scale solutions that work, by asking donors to “buy outcomes”. 

The Global Citizen Impact Funds have identified five inaugural NGO and multilateral partners: BRAC, charity: water, The Global Fund, International Rescue Committee, and One Acre Fund. 

Donations will only be released if the impact organisations achieve impact.

As part of the initiative, launched in partnership with NPX, Global Citizen is calling on the private sector, philanthropists and impact investors to make “bold financial commitments” toward ending extreme poverty. 

Michael Sheldrick, co-founder and chief policy officer at Global Citizen said there was an urgent need for action.

“Our future cannot wait. People’s lives are at stake. The planet’s longevity is at stake. We need innovative approaches and bold participation from the private and philanthropic sector to accelerate results toward ending extreme global poverty, now, more than ever,” Sheldrick said.

“So we partnered with NPX, a leader in innovative finance to design, manage, and implement a ground-breaking vehicle that can transform philanthropy and ensure we link funding with evidence-based, data-driven results.”

In addition to designing and implementing the offering, NPX’s role includes vetting the NGO and multilateral organisations selected for the funds, deal structuring and execution, fund operations, impact reporting, and communication. 

Global Citizen’s role includes mobilising donors to take action, identifying NGO and multilateral organisation partners, marketing and storytelling, and communicating impact.

Chris Stadler, managing partner at CVC Capital and co-chair of the Global Citizen board said as someone who funds solutions to end global poverty, it can be challenging to know whether your funding is having an impact. 

“The Global Citizen Impact Funds provide an answer,” Stadler said.

“The Global Citizen Impact Funds increase accountability, change behaviour, improve performance, and increase impact. They provide funders with assurance that their funding is linked to results.”