Page 63 - AERC Strategic Plan 2 July2020

THE AERC 2020–2025 STRATEGIC PLAN

Figure 4: Types of Funding

Unrestricted, 27.5m,
37%

Restricted, 45.9m,
63%

Budget Assumptions

The following assumptions have been considered in preparing the strategy budget:

» Continued support from current core funders with modest increments (of
10 per cent);

» Increased funding from African governments and institutions;

» Renewed funding from previous funders;
» New partnerships established with philanthropic foundations;

» A designed and operationalized AERC Endowment Fund;

» A five per cent inflation rate projected for the five years; and
» The US dollar exchange rate against other currencies would be maintained at
the current projected levels shown in Table 8. However, to provide a cushion and
stability to programme activities, due to the adverse effects of fluctuations in
the US dollar against other currencies that may arise, a modest exchange loss
provision of US$50,000 per year has been projected. In addition, any exchange
gains that are realized would be restricted and transferred to a reserve fund.
However, in the event that such risk exposure occurs and adversely affects
programme implementation, such restricted exchange gains would be released
only upon approval by the Board.

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