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HomeNewsUNLOCKING SUSTAINABLE FINANCING FOR COMMUNITY DEVELOPMENT AND DIVERSIFYING FUNDING STREAMS FOR COMMUNITY...

UNLOCKING SUSTAINABLE FINANCING FOR COMMUNITY DEVELOPMENT AND DIVERSIFYING FUNDING STREAMS FOR COMMUNITY INITIATIVES – By Stephen Onimisi Obajaja, Esq. 

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By Stephen Onimisi Obajaja, Esq. 

Being  a key note address delivered at the investiture ceremony of Rotarian Peter Kole Ogini, FPCPHARM as the 3rd President of Rotary Club of Alapere, District 9112 on the 2nd of November, 2024 at Bank PHB Hall, 8, Ladoke Akintola Street, GRA, Ikeja, Lagos State.  

Protocol:

It gives me immense pleasure to be with you on the occasion of the investiture ceremony of my brother, Rotarian Peter Kola Ogini as the 3rd President of Rotary Club of Alapere, District 9112 and to share on a topic that is very dear to Rotarians – Community Development. I thank you for inviting me and I hope we will have a stimulating time together this afternoon. 

Introduction: 

Community development projects and initiatives and its funding, especially sustainable funding is a vexed issue across the globe. There has been an age long struggle for resources and its allocation to areas of need both formally and informally since medieval times. This has persisted all through the ages and to modern times. Even the advanced western democracies still do struggle with the question of funding community development initiatives and the underlying issues it throws up. The worst hit however are people who live in the less developed world where religion, socio-economic and cultural issues exacerbates almost all the problems in these regions.

There is the palpable need in these poor communities like ours with paucity of funds to think outside the box, have a change in attitude, a change in societal expectations and norms in communities which are in dire need of these projects. It must be appreciated that these projects are critical to the wellbeing and the quality of life in these local communities. 

It goes without saying that in such circumstances, there must be a concerted effort to unlock sustainable financing for community development and diversify funding streams for community initiatives if the deficit in basic needs will be bridged anytime soon. 

Rotary International:

The four-way test of this global organization fascinates me to no end! It is a simple code of living and rendered in a simple and clear language. It could be the fact of its simplicity which makes it so elegant and profound. “Is it the TRUTH?”, “Is it FAIR to all concerned?”, “Will it build GOODWILL and BETTER FRIENDSHIPS?”, “Will it be BENEFICIAL to all concerned?” I dare say that this is a code by which all of humanity should live and our world would be better for it.  If we live by this code, it is capable of changing the individual, the family, organisations and governments for the collective good of our world forever.

I have also seen the mission statement of Rotary which can be summarized as “to provide service to others, promote integrity, and advance world understanding, goodwill, and peace through our fellowship of business, professional, and community leaders”.

Rotarians do this by staying true to its founding philosophy encapsulated in its objects to develop acquaintance as an opportunity for service; high ethical standards in business and professions; the recognition of the worthiness of all useful occupation; and the dignifying of each Rotarian’s occupation as an opportunity to serve society; application of the ideal of service in each Rotarian’s personal, business, and community life; the advancement of international understanding, goodwill, and peace through a world fellowship of business and professional persons united in the ideal of service.

In summation, it is all about service for Rotary International but service takes time, resources and personal sacrifice. This is where the selfless service of Rotarians must be commended and emulated.

Where resources are thin, it is important to prioritize on how to fund development projects, how the projects are to be sustained and how these projects can be delivered in a cost effective and efficient manner.

Community Development:

People have defined, described and ascribed community development in different ways and in accordance with their experience and ethos. However we will simply adopt a definition that accords with common sense and works for our purpose this afternoon. Community development therefore is simply “a process where community members take collective action on issues that are important to them”.

Put differently, it could mean an individual or a community of persons coming together to identify needs in their local community and try to galvanize efforts to solve the problems if they cannot do it themselves out rightly.  It can yet be said again that “community development is a process where community members take collective action on issues that are important to them. This might be done with or without the support of a community development professional or agency”. 

In the end, community development is about development, solving problems and enhancing the lives and wellbeing of those who live in our local communities. This is what Rotary International is known for the world over.

Factors to Consider in Delivery of Community Projects:

Community development projects and initiatives must be delivered. It is for the good of our local communities and in ensuring that they are delivered, we must consider key enhancement factors. Many community development projects and initiatives failed in the past because these critical factors were not taken into consideration and if at all they were not fully comprehended or robustly considered in specific initiatives.

We will briefly identify a few of these factors that should ensure success of community development projects and initiatives:

Identify the Problem – community needs in our part of the world are onerous and many, identify the most urgent need, its value to the target audience and its realizable potential.

Identify the Stakeholders – when you have identified the problem, identify those who are suffering and will benefit from the development project. This is important so whenever the need is met, they will own it, sustain it and make sure it lasts.

Identify Strategies – it is time to meet the stakeholders and explore best ways to deliver the project and if possible look at alternatives and do more to see if other strategies other than the course already decided upon will work better and meet the needs of the stakeholders.

Implement – having decided on the project and strategy, it is time to implement in a way that the identified stakeholders and others who benefit from it will own the project as their own with an emphasis on joint leadership and collaboration. 

Evaluate – the bane of many developmental projects in this climes is that we deliver and go away.  This has to change. We must consciously monitor and evaluate the impact of the projects on the targeted audience in our local communities and others to determine if the stated goals and objectives are met. 

Funding Community Development Initiatives:

Traditionally, funding for community development initiatives have come from grants. Grant is good and it used to be the surest way to fund noble and worthy causes but even at the best of times it was still fraught with elements of risk. A foundation or a philanthropic individual who is disposed to a cause today might not be so disposed tomorrow. Its own sources of fund may even dry up. Management may change and a leader who knows Joseph not may ascend the throne. 

I have also come to understand that even Rotary International gives grants to its Districts and Clubs to fund identified developmental activities in two major ways: The Global grant and Grant from the International Rotary Foundation to fund the development projects and initiatives of the districts and clubs. The districts and clubs may seek grants from other Foundations and agencies of Government but it should already be apparent that grants are never enough to fund the projects and initiatives.

Private donations, membership dues, governmental contributions and family and friends are a huge part of funding. That too may be unreliable in critical times of need.

It is therefore imperative that Rotary finds a way to unlock finance for sustainable community developments and diversify funding streams for community initiatives. We shall go ahead and suggest a few ways to do this. The suggestions that follow are inexhaustive and it may not be it and be all of funding other than grants.

Expanding the Grant Network:

Ideally we are looking at going beyond grants to raise finance for projects and initiatives but whilst we are at that, Rotary should get creative and find ways to expand already existent grant networks. Each district and club can focus on identifying institutions and individuals who have not given before and are disposed to good causes. Find a way to get to them and pitch the already worthy causes undertaken and what is proposed to be done in exchange for their support.

Corporate Social Responsibilty of Corporations and Other Business Organisations:

Corporate Governance and Corporate Social Responsibility is now high on the agenda of business managers. Many corporations now have sizeable sums set aside to support worthy causes and community development also ranks high in their metric. Rotary has to identify these corporations and get them to sponsor community development initiatives. They already have the budgets so it should not be too difficult to pitch a development program to them.

Government Agencies and Departments:

There are Ministries and many government agencies and departments dedicated to or with particular mandates to help with community development projects and initiatives. Financial votes are made to them every year to do this. Rotary should identify these government agencies and pitch proposals to them to fund community development projects as the need arises. 

The Local Government Councils (LGAs): 

Rotary should ask this pertinent question. What does the various local councils do? The LGA was conceived to be the true drivers of community development but you often find that all they do are the basics. It is time for Rotary to get involved with the governance of their local communities and see what the LGA’s can fund especially in an era where LGA autonomy has become a reality.

Traditional Institutions:

Our revered traditional institutions commands huge respect and reverent powers. They even have financial resources at their disposal. Rotary should explore this institution for help. Experience has shown that where the palace itself cannot guarantee resources, it has immense influence with its subjects who they can implore to collaborate with rotary and fund Community development projects.

Community Development Banks:

Community development banks are useful in funding community developments projects and initiatives. The bank may give interest free loans or make outright donations to worthy community development causes and may even adopt and wholly fund a well thought out community development initiative that strikes the right cord with the Community bank.

Financial Institutions:

This is going to be unpopular if you consider the nature of community development projects. All the same it is good to identify financial institutions linked to lending for charitable causes at little or no interest rate if push comes to shove.

Institutional Investors:

Angel investors are opposed to those who invest in vice can be encouraged to invest in corporations which already support community development initiatives or they might be persuaded to directly invest in local communities in a way that will engender and enhance the emergence and funding of development projects.

Investment:

I do not know if it is against the objects or operating principles of Rotary! Otherwise they should consider making particular financial investments tied to funding community development projects.

Endowment Fund:

Rotary at various levels can consider setting up endowment funds with the initial capital deriving from donations to fund community development initiatives in the future. This is a sure way to wean itself from unreliable grants and other meagre handouts.

Activism in Worthy Causes:

Rotary will be better served and get improved funding if the local communities are assured of the good it does in society by promoting positive public image – awareness. It should create opportunities for people by investing in communities. Causes like a clean safe environment, the girl child and women empowerment, medical outreach, incorporating family and friends into the activities of Rotary will resonate with people and ultimately help in widening the space of the number of ordinary folks who will voluntarily give to the cause of Rotary.  

Collaboration across Borders:

Collaboration across borders is important. It will help us see what works abroad in order to help broaden our perspective on possible ways of funding developmental projects here hitherto unheard of. It is always important to see what we can learn from abroad. It may help us do things differently.

Conclusion:

In concluding I like to call our attention to the issues that bedevil community development initiatives. Corruption and selfishness is rife in our clime. Rotary as conceived should not be part of that. Waste and wrong priority is common. We must be sure we are undertaking the right projects for the right reasons. It must always be about the good of our local communities first and foremost. We urge leaders of our many districts and clubs to be open and transparent.

“Now we have come full circle” as some corporate law scholars often say when they have concluded a poignant argument and or are concluding one of those seminal articles you will find in corporate law scholarship; and we are back to where we started. To the four-way test we shall return for guidance.

Consider this. Is it true that the project we have identified is what that local community needs? Is it fair to all stakeholders to execute that particular project now in that local community? Will undertaking the project build goodwill and better friendships in the local community and will it be beneficial to all concerned in the local community?

If these questions are answered affirmatively and coupled with the suggestions made in this paper, we will well be on our way to unlocking sustainable financing for development projects and diversifying funding streams for community development initiatives.

Thank you.

Stephen Onimisi Obajaja Esq. is a lawyer, writer, policy and public affairs analyst and he is Chairman of the Board of Trustees of the John Adebisi Obajaja Foundation whose main object is “to particularly support posthumous and educationally disadvantaged children, orphans, the poor and the less privileged in society”.

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