A Case Study of San Diego-Oaxaca Community–based Structured Remittances:

Key Challenges and Lessons learned

By Richard Kiy,ICF Harvard Global Equity Initiative

Cocoyoc, MexicoApril 6th 2005

Est. 1990 by San Diego Foundation Assets: $2.3 M (Year end June 30, 2004) Grantmaking

FY-04: $2.5M FY-02 to Present: $7.5M

Geographic Focus: Asia and the Americas Mexico, China Border, Baja California Peninsula Growing interest in Mexican migrant sending regions, primarily Oaxaca

Funding Areas: Education Health Environment Community & Economic Development Arts & Culture

Strategic relationship with Fundacion Internacional de la Comunidad (FIC), Baja California’s first community foundation (Tijuana, BC)

International Community Foundation (ICF) Overview

Why ICF exists

• Most U.S. giving is domestic—less than 1.9% went international in 2002;• Most U.S. overseas giving goes to U.S. based international NGOs (e.g.

Red Cross, CARE, Save the Children, TNC, CI, WWF, etc) as opposed to local NGOs overseas– Less than $843 million among organized funders went to foreign

nonprofits in 2002.• Individuals give more than foundations and corporations combined but

they are not legally able to gift internationally without going through a public charity “intermediary” like ICF

• Our core business is helping individual and family foundations to facilitate their cross-border charitable giving to community based overseas NGOs.

• ICF currently works with donors originating from Mexico, Dominican Republic, Argentina, and China with their diaspora charitable giving needs– One community that we have begun to work with is from Oaxaca

San Diego Matriculas, 1995-2002

(63,260) State Name Count Of Records % of Total Cumulative % Rank

OAXACA 7,397 11.69% 11.69% 1

GUERRERO 6,837 10.81% 22.50% 2

JALISCO 6,377 10.08% 32.58% 3

MICHOACAN 5,966 9.43% 42.01% 4

BAJA CALIFORNIA 5,223 8.26% 50.27% 5

DISTRITO FEDERAL 4,664 7.37% 57.64% 6

GUANAJUATO 3,178 5.02% 62.67% 7

SINALOA 2,710 4.28% 66.95% 8

MEXICO 2,561 4.05% 71.00% 9

NAYARIT 2,495 3.94% 74.94% 10

QUERETARO 1,908 3.02% 77.96% 11

MORELOS 1,856 2.93% 80.89% 12

PUEBLA 1,714 2.71% 83.60% 13

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.-,805

"!78

"!76

.-, 15

.-, 5

"!78

.-, 8

ORANGE COUNTY

RIVERSIDE COUNTY

MEXICOMEXICO

#

Carlsbad

#

Camp Pendleton North

#

Valley Center

#

Rainbow#

Fallbrook

#

Poway

#

Ramona

#

Vista

#

El Cajon#

La Presa

#

Chula Vista

#

Borrego Springs

#

Escondido

#

Oceanside

#

San Diego

#

Encinitas

#

La Mesa

N

0 20 40 MilesIncorporated Placesin San Diego County

#01-Mexicans from Oaxaca.1 dot = 1 person

NAID Center - UCLANAID Center - UCLA

Mexican Matriculas: Oaxaca

NAID Center - UCLANAID Center - UCLA

Municipio of Birth of SD Matriculas from Oaxaca

Summary of El Trapiche Pilot

Funding Pilot Program & Status: $5,500 + $2,500 Program grant by ICF to Centeotl to

oversee pilot ($8,000 total)•First Round: 12 micro-credit loans ranging from $250 to $1,000. Loans paid in full w/ interest on November 2003•Second Round: 20 micro-credit loans ranging from $100 to $300. Loans paid in full w/ interest on November 2004.•Third Round: $5,500+interest grant for community based projects to be overseen by Centeotl, March 2005.

Next Steps: • Raising $100,000 for expanded micro-credit program for Valle Central in collaboration with COCIO, San Diego area employers, other funders. Also, looking at similar matching initiative for the Mixteca Region.

Pilot Project Partners: International Community FoundationCoalition of Indigenous Communities of Oaxaca (COCIO),Centro de Desarollo Comunitario Centéotl, A.C. (Centeotl)

Cross-Border Structured Remittance Pilot Challenges & Lessons Learned

• Having an experienced NGO with strong local is critical but not easy to find;•Strong local leadership is also critical;• Internal politics inevitably arises;•Projects can be time/staff intensive;•Cross-border communications are key;• Migrant donors’s first priority is to send money directly to family members not community based projects.

ICF’s key challenge is matching migrant donors’ community specific interests with viable projects and the right NGO to help execute program.

Thank you