1998-1999 update on USAID-supported environmental endowments

Highlights of program impacts include the following: (1) KEHATI"s programs have helped raise local environmental awareness and promoted more effective land use and adoption of appropriate technologies. Perhaps most importantly, KEHATI"s leaders have assessed the outcome of phase I and addressed deficiencies in planning for phase II. An external evaluation being undertaken jointly with USAID will contribute to the completion of internal assessments. (2) FMCN has strengthened Mexico"s conservation sector through institution strengthening workshops for NGOs, publication of a Mexican Conservation Directory, grants to community groups that might otherwise have been unable to contribute to conservation, and using a national consultation to establish its structure. FMCN has also initiated the use of strategic planning and monitoring data collection at the program level and for certain projects and has been key in establishing a Latin American consortium of national environmental endowments. (3) FPE has provided more than $700,000 for 220 activities in training, conferences, workshops, and advocacy; provided leadership in conceptualizing and developing more than 48 projects aimed at strengthening national, regional, and community-based conservation projects; and helped formulate a national policy regulating the scientific and commercial use of genetic resources. (4) Fundacion VIDA has contributed to natural resource conservation, the stabilization of agricultural production systems, and the maintenance of biodiversity and water resource systems by promoting alternatives to slash and burn, community environmental efforts, and other approaches. The foundation estimates that its grant-making program has had positive impacts on more than 1.5 million Honduran residents. Seven lessons learned are cited: (1) Endowment capital maintained in a U.S. or other stable currency generally provides a more consistent source of funding than local currency investments for the immediate future. (2) Further donor collaboration may be necessary to leverage additional support. (3) Foundations must be strong and vibrant organizations. This takes years to evolve, and donors must provide operational funding and TA during this period. (4) Foundations and the donors that fund them should provide evidence of their impacts through systematic monitoring. (5) Foundations need to build and maintain organizational independence and local ownership through transparent procedures, broad participation, and legal protection. (6) Foundations need to balance grant-making with "environmental community-building" and dialogue. (7) The use of endowment mechanisms for conservation should be continued and expanded along guidelines established by experienced endowment managers, funders, and TA programs. The primary conclusion is that environmental endowments play a catalytic role in protecting the environment in host developing countries and have other strong development impacts, such as broadening understanding, support, and involvement in conservation and development; encouraging democratic discussion and collaborative methods; instilling a sense of local ownership of, and accountability for, conservation finance; and reducing dependence on outside experts or international organizations. In addition, only endowed foundations can fund grants over a long enough period of time to ensure consistent attention to environmental and other development problems, a major difference from other USAID programs that carry out local grant-making services. The longer- term nature of endowments ultimately creates local sustainable management and financing for the environment. Broad potential exists for further efforts under the Tropical Forestry Conservation Act. Includes references. (Author abstract, modified)