Page 62 - AERC Strategic Plan 2 July2020

THE AERC 2020–2025 STRATEGIC PLAN

Table 8: Financing the strategy: projected funding sources

Funding Sources 2020/21 2021/22 2022/23 2023/24 2024/25 Total % Contribution
Non-African Governments 5,865,129 7,539,696 6,551,503 5,772,715 4,105,213 29,834,256 41%
African Governments/
Institutions 2,700,000 3,400,000 3,800,000 4,200,000 4,300,000 18,400,000 25%
Foundations 2,184,358 2,249,942 2,036,081 1,913,729 605,000 8,989,110 12%
Private Foundations - 50,000 100,000 200,000 200,000 550,000 1%
International Institutions 1,138,617 3,213,787 2,893,224 2,893,224 3,043,224 13,182,075 18%
Other income (Investment 480,500 480,500 480,500 480,500 480,500 2,402,500 3%
Income, fees etc)
Total Income Projected 12,368,604 16,933,925 15,861,308 15,460,168 12,733,937 73,357,941 100%

Figure 3: Potential Funding Sources

The highest source of the projected funding is from governments at 66 per cent.

Other income
International (Investment
Institutions Income, Fees, etc)
18% 3%
Non-African
Private Governments
Foundations 41%
1%

Foundations
12%

African Government/Institutions
25%

Types of Funding and Overhead Cost Recovery
Methodology

According to Figure 4, unrestricted support accounts for 37 per cent while restricted
support constitutes 63 per cent of the projected income. In view of funders’ increased
preference for earmarked funding, AERC has revised its policy on overhead and indirect
costs to ensure that programme management costs (i.e. direct programme personnel
costs, shared personnel costs, and overheads) are factored in to all grant awards. Based
on past audits, these costs are rated at 20–30 per cent depending on the programme
activity level. The overhead and indirect costs will be audited annually and revised
appropriately.

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