Indicative Planning Figures (IPF) 2021.
Dear colleagues from Member Associations,
In IPPF, we are all changing By Choice, For Choice in our governance and in our operations, focusing on all ways in which we are accountable to each other and to the cause that we all serve. Transparency on how IPPF allocates resources is key, so below we provide detail on the Indicative Plan and Budget for 2021. While the new formula will not take effect until 2022, we have made significant strides to ensure a greater proportion of the funding goes to the work on the frontline by MAs.
Secretariat Restructuring and Cost Reduction
Since the Spring, the Secretariat has been engaged in a process of profound reflection on how to become unified, and thereby more efficient and more MA Centred. With the support of an Advisory Group – where we were pleased to have the support of two experienced MA Executive Directors – and in consultation with staff across all offices, we have co-created a new structure and are launching new ways of working. Geography, local expertise, history and culture still matter so the primary mandate of the Regional Offices is still to support MAs within regions, but now they will now also work in a more unified way globally so all MAs can benefit from and contribute to the myriad skills and talents found across IPPF.
We set ourselves a goal to reduce the Secretariat portion of unrestricted core funding to 30%. This had risen over the years; at its highest reaching 44% in 2017 and remaining around 40%. Our goal for the 2021 budget was therefore to cap the cost of the Secretariat to 30% (equating to +/- $18M) of unrestricted core (plus restricted and overhead recovery).
We have reached this figure by reducing our overall budget by US$ 7 M from the cost of the Secretariat, representing 12% of core unrestricted funds in 2021 (US$ 57.6 M). This has not been easy – it has mean saying goodbye to more than 60 staff from all corners of our Secretariat, some of whom have dedicated many years of service to IPPF. It also means prioritizing the Secretariat’s activities, focusing on what is most relevant to MAs and the people they serve; and most important vis-a-vis the SRHR context regionally and globally.
Increased Member Association Funding Across Three Streams
The reduction in the Secretariat expenditure in 2021 means that in addition to a significant growth in restricted projects over the last 3 years, the overall amount of core funding being made available to Member Associations has increased by US$6.7 M over 2020.
So that we all remain relevant and responsive, funds are distributed in three streams to protect the core work, while ensuring we optimise strategic opportunities and are equipped to rapidly respond to humanitarian crises.
As the new formula for Stream One of our new resource allocation model will not kick in until 2022, the break-down of the Indicative Planning Figures (IPFs) are calculated along similar regional lines as previous years, but as a percentage of Stream One funding only. The indicative figures allocated to Member Associations for Stream One is 35.27M, for Stream Two, it is $3.8M and Stream Three is $1M.
Higher percentage of total allocated to Core Grants
95% of the MA IPF will now be allocated in core grants, including Performance Based Funding (PBF), a substantial increase in some cases. In the past, regions had different ways of allocating core funding to MAs, as approved by their Regional Executive Committees. Some Regions gave more in direct core grants, others used a percentage to pay for technical assistance, activity and meeting cost for MAs, regional meetings, and programme grants. As we have looked into past practices, in some cases the ratio of the MA IPF allocated in core grants vs the ratio allocated on such technical assistance and activities became unbalanced with less going directly to the frontline core work. Thus for 2021, all regions will operate in the same way and to the same transparent and agreed percentages.
‘Investment Vouchers’; “You Decide” putting decisions on TA and shared activities back in your hands
MAs have regularly expressed – both directly to us, and in surveys – the value of shared activities and the connection with their peers in the regions, as well as their appreciation for TA received from the Secretariat and, particularly, ROs. For 2021, we will therefore pilot a new approach which will still incentivize the best of what the Federation can mean for its members while putting the decision-making back in your hands.
To enable MAs to maximise the value of Federation membership, 5% of Stream One core grants will be retained centrally to co-invest. In most regions this is a significant reduction in the % of centrally managed funding, and the decision on expenditures will be made by you. Each MA will receive an ‘investment voucher’ that they will be able to pool with other MAs to invest in an area of interest to several or all MAs in the region. EG. A shared consultancy; a workshop or meeting across MAs; a regional report which could be used nationally; developing a new policy or area of work, or other shared interest. In each region, MAs are encouraged to decide on their own process for considering the best use of their ‘investment vouchers’. The Regional Offices are there to support or facilitate if needed, and the decision on how to invest the funding will be MA led.
Costs to include in IPF for meetings
In the years when there is a General Assembly, participation will be supported from the Secretariat portion of the budget (with self-funding encouraged where possible). The Regional Office budgets will be able to cover meeting costs (venue, speakers, refreshments etc) for the Regional Forums. However, given the rebalancing of funding from Secretariat to MAs, they will no longer stretch to covering 100%, thus grant receivers will now have to include the costs of their travel and accommodation for the Regional Forums in their APBs.
2022
As you know this is the last year when we will use the current allocation formula, and we are now consulting on the work done so far by the consultants who have been supporting us on the complex process of developing objective measurement criteria which will be used in 2022 for one final annual cycle grant. However, we will already be starting the process next year to prepare both the Secretariat and the MAs for longer term planning and budgeting, whereby grants will be allocated on a three-year cycle from 2023.
Please feel free to contact the RO for any clarifications.
Best regards,
Alvaro