Since 1987, more than 70 associations are federated under the RESEAU FINANCEMENT ALTERNATIF

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Public/private partnership creation to promote
fundamental rights

• Lisbon 20 September 2007

Financed by the DG Employment, Social Affairs and
Equal Opportunities
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Introduction

• Exercise - introduction
• Trainer
• Delegates why are you following this training
  and what is your interest in partnerships

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EUFIN background

• The Eufin project has two phases.
• The first phase (2004-2005) was to benchmark 17
  partnerships (public/private/NGO) around Europe
  to collect best practices.
• The second phase (2006-2007) aims to disseminate
  these best practices through a series of six
  trainings.
• Also, four questions have been identified for
  further exchanges integration of new partners,
  partnership evaluation, crisis management and
  financial means.

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Training objectives

• You will understand how to prepare a partnership.
• You will learn to select partners wisely to
  ensure the action's success and a common vision.
• You will find out that sufficient financial
  resources are means to the partnerships success.
• You will appreciate that communication is key to
  the well being of a partnership.

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What is a partnership?

• Exercise 2 teams
• Each team agrees separately on how to define the
  word partnership.
• Then report back to the group.

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What is a partnership?

• Exercise 2 teams
• A partnership is defined as a relationship where
  two
• or more parties, having compatible goals, form an
• agreement to do something together.
• Partnership implies the sharing of resources,
  work, risk,
• responsibility, decision-making, power, benefits
  and
• burdens.
• Definition proposed by Flo Frank and Anne Smith
  in The partnership handbook, http//dsp-psd.pwgs
  c.gc.ca/Collection/MP43-373-1-2000E.pdf

A
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Fundamental rights

• The freedom to choose an occupation and the right
  to engage in work (article 15 of the European
  Union's Charter of fundamental rights)
• The freedom to conduct a business (article 16)
• Equality between men and women (article 23)
• Protection of family life (article 33)
• The right to social security and social
  assistance (article 34)
• Access to services of general economic interest
  (article 36)
• Environmental protection (article 37)

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Fundamental rights
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Table of content

• 1. Preparation period
• 2. Selecting partners
• 3. Sufficient financial resources
• 4. Supporting the partnership

Creation
Application
Audit assessment
Development
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1. Preparation period

• First step in a partnership life
• Taking the time to prepare

Implementation
Application

• The preparation time is crucial to a partnership
  
• Have organisational devices become operational
• Build a common vision

Control and evaluation
Development
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1. Preparation period

• Example Semaine de la Solidarité (FR)?
• For the Semaine de lépargne solidaire
  Finansol, canvassing for partners was done
  relying on members of the network which
  introduced Finansol to potential partners.
• Later, an individual meeting was arranged with
  these prospects.
• However, most importantly, a meeting to mobilise
  banking institutions and local governments in
  general made it possible to finalise the
  financial pool for the French project.

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1. Preparation period

• 1.1. Delineate the action supported by the
  partnership

• What? -defining the goal of the action
• Who? -defining the public targeted by the
  action
• Where? -delineating the scope of the action
• How? -determining resources available

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1. Preparation period

• 1.1. Delineate the action supported by the
  partnership
• Example Fonds Flamand dassurance soins
  (BEL)?
• For example, the geographic scope was dismissed
  as key factor for the success of an initiative
  because half of the projects reviewed during this
  initial workshop are being undertaken at local
  level (this is the case with good practices
  originating from Lille, Portsmouth and Göteborg).
• Others, such as the Flemish Health Insurance Fund
  in Belgium are operating on a regional basis.

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1. Preparation period

• 1.2. Adjusting the partnership structure to the
  requirements of the local action
• Action near the target group
• Defining the geographical zone
• Partners proximity
• The need for a local network even if the contract
  is on a national level

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1. Preparation period

• 1.2. Adjusting the partnership structure to the
  requirements of the local action
• Example ADIE (FR)?
• Structures with a smaller but far-reaching scope
  is a key factor for success these structures are
  based on a 'core' team comprising one to 11
  full-time paid staff.
• Conversely, the team may be brought up to
  strength with several hundred employees when the
  staff of regional structures taking part in a
  project are taken into account (network of
  volunteers and people employed by local banking
  agencies).

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1. Preparation period

• 1.3. Defining the reasons underpinning the
  implementation of the partnership
• Exercise 2 teams
• List potential reasons that could motivate the
  implementation of a partnership. Give concrete
  examples.

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1. Preparation period

• 1.3. Defining the reasons underpinning the
  implementation of the partnership
• Fill a gap not yet fulfilled by existing entities
• Defend fundamental rights
• Build complementary and synergies
• Private or public partner bring credibility
• Pool resources to reduce costs and administrative
  tasks

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1. Preparation period

• 1.4. Determining the expected part of each
  partner
• Exercise 3 teams
• Each team represents an actor (public authority,
  NGO or private bank). Discuss and define your
  role in a partnership.

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1. Preparation period

• 1.4. Determining the expected part of each
  partner

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Coffee break
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2. Selecting partners
Example - Mairie de Lille (FR)? It is also
instructive to note that in the case of two
projects initiated by the authorities, the choice
of partner banks was a lot smoother process than
in the other cases. In Lille, 95 of the
project is funded by public authorities.
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2. Selecting partners

• 2.1 Contacting and selecting partners
• Exercise - Together
• What steps would you take to find partners for a
  project?
• What aspects should be thought of?

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2. Selecting partners
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• 2.1 Contacting and selecting partners

• Where can partners be found?
• Current contacts
• Networking
• Sector players

List of potential partners

• Decision-making contacts

• The needs of the action

Trick of the trade Always contact more partners
than needed to avoid last minute desistance

• Geographical proximity

• Dependence issue

Partners selection
Be careful!!! Not to create dependency
relationships with a type of actor
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2. Selecting partners

• 2.2. Convincing potential partners
• Which stakes?
• Proving the relevance of the project
• Sharing a common vision
• Optimum communication since the beginning
• In which way? Adjusting arguments to the target
  (private public)?
• A strategic target public authorities

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2. Selecting partners

• 2.2. Convincing potential partners
• Example - Integra (SK)?
• It is important to persuade banks to forge a
  partnership to promote fundamental rights with
  social economy organisations, but first of all
  public authorities need to be convinced.
• In the case of the Integra Foundation for women
  entrepreneurs (Slovakia), the focus was more on
  getting the public authorities to see the value
  of the project, as they were not very familiar
  with innovative schemes. However, their
  reluctance was soon overcome.

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2. Selecting partners

• 2.3. Writing partnership agreements
• Detail all points and check partners have well
  understood them
• Usually bilateral, in rare cases trilateral
• Beware translations!

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2. Selecting partners

• 2.3. Writing partnership agreements
• Example ANDC (PT)?
• Project sponsors all acknowledged the importance
  of drawing up bilateral partnership agreements to
  define a project's key values, aim, target
  audience, etc. and putting this down on paper.
• The ANDC, among others, uses contracts as a basis
  for defining the part played by each partner,
  thereby establishing each partner's contribution
  and level of involvement.

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Lunch break
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3. Providing sufficient financial resources

• Example Bridges Community Venture (UK)?
• A higher level of financial resources generally
  involves a search for further partners.
• For example, Bridges Community Venture reserves
  the right to allow its capital to be opened up to
  new partners so as to be able to make fresh
  investments in the most economically deprived
  areas of England as a result of setting up new
  companies or expanding existing businesses.

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3. Providing sufficient financial resources

• 3.1. Providing sufficient financial resources
• Financial needs identification
• 3 funds collection approaches
• top down
  bottom up
  mix
• Remark sometimes funds coming from public
  sources can harm other granting possibilities
  (for example religious funds)?

public
public
public
private
private
private
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3. Providing sufficient financial resources

• 3.1. Providing sufficient financial resources
• Example Portsmouth Savers Credit Union (UK)?
• The financial resources are of crucial importance
  for the longevity of a project but capital is
  often in short supply for these structures, so a
  partnership is obviously justified for financial
  reasons.
• Funding for the activities of a social economy
  organisation therefore takes the form of
  financial grants or guarantees awarded by
  public-sector partners, as is the case with
  Portsmouth Savers Credit Union.
• This British entity has also appealed to
  financial institutions to take a stake in the
  capital or grant a subordinated loan.

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3. Providing sufficient financial resources

• 3.2. Foresee and answer cash-flow needs
• Exercise 2 teams
• List potential cash-flow problems and think about
  possible solutions to these issues.

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3. Providing sufficient financial resources

• 3.2. Foresee and answer cash-flow needs

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3. Providing sufficient financial resources

• 3.3. Increasing financial resources for the
  action
• Which goal? Financial self-sufficiency
• How?
• Increasing the capital
• Integrating new partners
• Loans
• Sponsors
• Public issue of shares
• Raising funds through donations
• Good results
• Remark Financial self-sufficiency must not be
  achieved by losing management autonomy.

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3. Providing sufficient financial resources

• 3.3. Increasing financial resources for the
  action
• Example Microfinance Coalition (RO)?
• For example, in the case of MicroFinance
  Coalition, the success of micro-credit
  development programmes resulted in the payment of
  extra financial resources.
• This will however not prevent searching for
  alternative financial resources so as to be less
  financially dependent on current partners.

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Coffee break
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4. Supporting the partnership

• Example Guarantee Fund (SV)?
• The Guarantee Fund in Göteborg project sponsors
  agreed that the written reports that have to be
  handed in at regular intervals and meetings
  between partners promote management transparency
  and, consequently, encourage more accountability.

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4. Supporting the partnership

• 4.1. Developing feedback mechanisms among
  partners
• Exercise Together
• List all communication and interaction means a
  partnership could use.

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4. Supporting the partnership

• 4.1. Developing feedback mechanisms among
  partners
• Information sharing
• Management reports
• Newsletters
• Adjust information to partners

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4. Supporting the partnership

• 4.2. Developing interpersonal relationship with
  partners
• Which goal?
• Establish an atmosphere of trust
• How?
• Regular meeting
• Steering committees
• Personal and informal relationships
• Important to involve partners in these events

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4. Supporting the partnership

• 4.2. Developing interpersonal relationship with
  partners
• Example Mairie de Lille (FR)?
• Looking beyond the regular meetings, some good
  practices have been successful in establishing an
  informal or even a personal relationship with the
  partners. An example is the policy conducted in
  Lille by forging informal ties, the project
  sponsors also encourage the partners to espouse
  the sponsors' values and objectives.
• Promoting an appropriation of the values and
  objectives is one of the keys for ensuring the
  longevity of a project this provides a means of
  settling disputes more straightforwardly in the
  event of a crisis or when a founder decides to
  leave, for example. Informal contacts (through
  telephone conversations, exchanging e-mail
  messages and any other type of contact apart from
  formal ones) are therefore of crucial importance
  for the launch of a partnership.
• This applies not only to institutions but also to
  individuals, as part of the bid to guarantee that
  the structure as a whole espouses a project.

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4. Supporting the partnership

• 4.3. Owning the action
• Which goals?
• Settle more easily a dispute
• How?
• Selecting wisely your partners
• Each partner should mobilise his/her organisation
  globally
• Issue dependence toward one person in a partner
  organisation.

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4. Supporting the partnership

• 4.3. Owning the action
• Example ADIE (FR)?
• Once the partners have been shown just how
  important the cooperation is and the need to
  encourage each structure to back a project, the
  next step is to ensure that the partners adopt
  the same approach towards the project.
• In the case of the ADIE, for example, meetings
  were held with each partner as often as necessary
  and each partner was included in the project as
  soon as the activities had been decided upon.

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4. Supporting the partnership

• 4.4. Assessing the partnership
• Which goals?
• Improve the quality of the partnership
• Improve credibility
• Be transparent with the use of partners funds
• How?
• Internal assessment
• External assessment
• Frequency of assessment
• What methodology ?
• Compare the goals (qualitative/ quantitative)
  with achievements
• Identify new needs
• Implement the corrections required

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4. Supporting the partnership

• 4.4 Assessing the partnership
• Example Enigma (DE)?
• The key players in the social economy typically
  call for an external assessment. In the case of
  Enigma Siebte Saüle Microlending, this system has
  turned out to be extremely valuable for making a
  root-and-branch assessment of the partnership
  mechanism, such as the crisis management
  methodology.
• More importantly, an external audit has enabled
  the quality of work undertaken to be
  acknowledged, thereby allowing Enigma Siebte
  Saüle Microlending to be recognised as expert in
  their field.

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4. Supporting the partnership

• 4.4 Assessing the partnership
• Example Microcrèdits per a dones
• emprenedores sense avals (ES)?
• Ideally, a steering committee will be set up to
  monitor how the partnership develops, and how the
  action is prepared, carried out and assessed.
• This is the case for Microcrèdits per a dones
  emprenedores sense avals. Public authorities are
  part of the credit acceptance committee which is
  convened every three weeks.
• With their regular meetings, these steering
  committees avoid creating any heavy organisation.

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5. Training assessment and thank you

• Please take the time to fill the training
  assessment form and thank you for your attention!
• Have a nice evening!!