Global Fund Private Sector Partnerships: Resource Mobilization Overview

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Global Fund Private Sector Partnerships Resource
Mobilization Overview
June 2006
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Summary

• Resource mobilization for the Global Fund from
  the Private Sector has been limited to date 15
  million in cash and non cash contributions were
  mobilized in 2005.
• However, efforts to date have been successful in
  testing and building a solid base of Private
  Sector partnerships which point to the tremendous
  future potential 500 700 million annually in
  additional revenue and reduced costs in the long
  term.
• Realizing the full potential value of these
  opportunities will require substantial resource
  investments, enabling policy changes and long
  lead times.

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Agenda
Context Opportunity Opportunity Opportunity
Private Sector Partnerships Cash
Contributions Service/Product Contributions Co-i
nvestments and Operational Contributions
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Strategy
Test a broad base of partnerships
Focus on development of priority initiatives
Expand by leveraging partnerships/successes
2002 - 2003
2004 - 2005
2006 and beyond
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Opportunities
Cash Contributions
Product Contributions
Operational Contributions
Pro Bono Services
Examples

• Consumer marketing campaign by RED (AmEx,
  Converse, Gap, Giorgio Armani, Motorola)
• Consumer grass roots campaign by UNF
• Employee giving by Merck
• Major gifts from Johnson Johnson

• Pro bono consulting services from McKinsey
• TB drug donation from Novartis (via GDF)
• Discounted pricing offer from GSK

• Co-investment by BHP Biliton
• Participation in CCMs by Standard Chartered Bank

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Long Term Potential
Cash Contributions
Product Contributions
Operational Contributions
Pro Bono Services
Increase Revenue 200-300 million
Reduce costs 300-400 million (products) 10-25
million (services)
Improve implementation Increased scale and
effectiveness
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Agenda
Context Opportunity Opportunity Opportunity
Private Sector Partnerships Cash
Contributions Service/Product Contributions Co-i
nvestments and Operational Contributions
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Opportunity
Private Giving Market
Global Fund Opportunity
Full Potential Opportunity
Priority
150 - 250M 10 - 25M 10 - 25M TBC 200
300M
Consumer Employee Corporate Wealthy
Individuals Total
Hi Mid Mid Low
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Guiding Principles

• Leverage
• Sustainability
• Additionality

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(Product)RED
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How It Works

• Established brands pay a licensing fee to (Red),
  agree to marketing requirements and stipulation
  that all RED products and services benefit the
  Global Fund

(Product)RED
Established consumer brands

• RED partner brands develop and market unique Red
  products to consumers

• A significant portion of partner profits on all
  RED products (e.g. 1 of spending on the American
  Express RED card, 50 of profit on Gap RED
  apparel) go to Global Fund-financed AIDS programs
  in Africa

Global Fund
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Products
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What It
Is
Is not

• A change in the way the Global Fund manages its
  grant portfolio
• An additional burden on recipients
• A short term effort
• Cannibalizing on fundraising efforts of other
  organizations

• A corporate effort that will significantly
  increase private sector contributions to the
  Global Fund
• A marketing effort that will significantly raise
  awareness of the Global Fund and its grantees
  among millions of consumers
• A sustainable, scaleable, additional business
  model for corporate engagement

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How It Will Spread

• January 2006 Press conference at the World
  Economic Forum meeting in Davos featuring Bono,
  Bobby Shriver (CEO of RED, Chairman of DATA),
  Richard Feachem and Partner CEOs
• March 2006 Launch of the American Express RED
  credit card and Gap RED T shirts in the UK
• April 2006 Launch of the Converse (Nike) RED
  Mali-mud cloth shoe in the UK and online and the
  Emporio Armani RED sunglasses worldwide
• May 2006 Launch of Motorola RED in the UK
• Fall 2006 Launch of enhanced RED product
  collections from Gap, Converse and Armani, and
  expansion into the US.

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HOPE SPREADS FASTER THAN AIDS
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Key Elements
Product
Distribution

• Web
• Retail
• Postal Svc
• Direct (metered mail)

• Stamp / metered mail
• Product extensions

Web
Map
hope spreads faster than AIDS
Ad Products
Viral Tools
PR
Marketing
Community

• Web
• TV/Cable
• Print

• NGOs grass roots advocacy
• Celebrities

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Stamps
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Mapping the Spread of Hope
The spread of HOPE
get on the map
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How it will Spread

• The campaign will be unveiled at the
  International AIDS Conference in Toronto in
  August, and launched to consumers in the US on
  World AIDS Day in December 2006.
• The launch offering will consist of
• customized stamps and metered mail made possible
  by recently developed technology and postal
  regulations
• state-of-the-art web-based mapping technology to
  engage consumers in tracking the spread of hope
• The offering will then expand to include other
  channels and products to promote a ubiquitous
  spread of hope.

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Agenda
Context Opportunity Opportunity Opportunity
Private Sector Partnerships Cash
Contributions Service/Product Contributions Co-i
nvestments and Operational Contributions
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Opportunity
Cash vs. Non-cash Giving Market
Global Fund Non-cash Opportunity
Full Potential Opportunity
Priority
300 - 400M 10 - 25M 300 425M
Product Service Total
Hi Mid
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Current Activity

• Ad Hoc Committee formed with members of Finance
  and Audit Committee and Policy and Strategy
  Committee to explore opportunity
• Exploration will include
• Multi-stakeholder Consultations
• Mapping of existing contributions and mechanisms
• Assessment of potential opportunity and risk
• Recommendations to Board in 2007

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Agenda
Context Opportunity Opportunity Opportunity
Private Sector Partnerships Cash
Contributions Service/Product Contributions Co-i
nvestments and Operational Contributions
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Opportunity
Co-Investment
Operational Contributions
Leveraging business core-competences and
expertise to support CCMs and grant recipients
Leveraging business infrastructures, staff and
management skills to support grant implementation
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Co-investment Current Activity

• Mapping of de-facto co-investment/operation
  contributions and documenting best practices
• Identifying additional opportunities and
  facilitating their development
• Developing a common strategy with partners to
  coordinate better and scale up the co-investment
  approach and operational contributions

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Long Term Potential
Cash Contributions
Product Contributions
Operational Contributions
Pro Bono Services
Increase Revenue 200-300 million
Reduce costs 300-400 million (products) 10-25
million (services)
Improve implementation Increased scale and
effectiveness