# Global Citizen seeks up to $1 billion for six sustainable ‘Impact’ funds Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Citizen Launches Billion-Dollar Funds for Meta Description: Global Citizen announces plan to launch six funds of up to $1 billion each to address environmental and social impact in developing countries. Read more on Reuters. URL: https://financedigest.com/global-citizen-seeks-up-to-1-billion-for-six-sustainable-impact-fundshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-18t010717z1lynxnpei3h00lrtroptp4global-funds-impact-1736815859558-compressed.jpg) (The April 17 story officially corrects to remove reference to potential return in paragraph 7.) By Simon Jessop LONDON (Reuters) – Global Citizen, an international non-profit aiming to help end poverty, said on Monday it plans to launch six funds of up to $1 billion each focused on generating environmental and social impact in the developing world. The Global Citizen Impact Funds [aim](https://www.financedigest.com/british-ev-startup-arrival-gets-300-million-funding-aims-to-slow-cash-burn.html "British EV startup Arrival gets 0 million funding, aims to slow cash-burn") to help plug a large gap in funding for poorer countries struggling to meet the United Nations 2030 Sustainable Development Goals, which include providing access to clean water and fighting climate change. The world’s poorest countries need close to $400 billion annually in external finance to meet those goals, but currently get only a fraction of that, [Global Citizen’s Chief Policy Officer](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") Mick Sheldrick told Reuters. To help drive faster change, Global Citizen said its funds, created with partner NPX, would [bring together philanthropists and investors](https://www.financedigest.com/worlds-best-islands-bring-holidaymakers-and-investors-flocking-to-the-philippines.html "‘World’s best islands’ bring holidaymakers and investors flocking to the Philippines") using a financing model that it believes would prove scaleable quickly. It hopes to start raising donor [money over the next six to nine months and is targeting at least $25 million for each fund](https://www.financedigest.com/explainer-why-european-money-market-funds-inflows-are-lagging-behind-the-u-s-torrent.html "Explainer-Why European money market funds inflows are lagging behind the U.S. torrent?"), although most of the NGOs chosen to receive funding could scale quickly and absorb up to $1 billion in donor money. Under the model, investors, primarily funds with impact mandates, would [give money](https://www.financedigest.com/giving-women-the-power-to-make-money-and-take-control-of-their-destiny.html "Giving women the power to make money and take control of their destiny") to the NGO to help it expand its services, with the aim of hitting certain targets. If successful, and after the results have been independently verified by a third-party, the [Global Citizen fund](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") in question would release donor money to the NGO, to repay the investors. Through the process, the [investors would receive a return](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") on their capital, the NGO would get an incentivisation payment, while the donors would have the assurance that they would fund only initiatives that worked. “We really think it has the potential to be a groundbreaking outcomes-fund vehicle that could transform philanthropy,” Sheldrick said. Our hope would be that it could, over time, [lead to an upsurge in the amount of philanthropic capital](https://www.financedigest.com/leading-global-trade-finance-specialist-becomes-adviser-to-gfg-alliance-firm-wyelands-capital.html "Leading global trade finance specialist becomes adviser to GFG Alliance firm, Wyelands Capital") that is available for SDG-related programmes. The NGOs selected include One Acre Fund, which [supports smallholder farmers in Africa around](https://www.financedigest.com/engineering-pipe-hanger-and-support-market-estimates-the-to-expand-at-around-4-8-cagr-from-2021-to-2031-2.html "Engineering Pipe Hanger and Support Market Estimates The To Expand At Around 4.8% CAGR from 2021 to 2031") climate action, including through planting and protecting more trees. Its target would be to support the survival of 44 [million trees planted](https://www.financedigest.com/bosch-to-build-215-million-plant-in-central-mexico.html "Bosch to build 5 million plant in central Mexico") over four years, leading to 7.4 million tonnes of carbon being sequestered. If successful, the [plan could scale to more than 1 billion](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") trees over the next decade. The other funds will focus on detecting and treating malaria; improving [literacy and numeracy for children](https://www.financedigest.com/why-teaching-your-children-financial-literacy-from-a-young-age-will-set-them-up-for-success.html "Why teaching your children financial literacy from a young age will set them up for success") in crisis settings; providing access to clean water; lifting marginalised women out of poverty; and improving food security. (Reporting by Simon Jessop; Editing by Tomasz Janowski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---