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Governance & Documents

Governance & documents

 

The Impact-Linked Finance Fund is set up as a Dutch foundation (“Stichting”) registered at the trade register under 34333546. Its governance structure is designed to safeguard its mission to provide finance to high-impact organizations and reward them for positive outcomes generated through their business activities as well as the financial and commercial sustainability of the fund.

For more details on governance, please click on the tables below:

Facts & figures

Official name:  Stichting Impact-Linked Finance Fund

Registered address:   Westzeedijk 102-3, 3016 AH Rotterdam, The Netherlands

Website: https://ilf-fund.org/

Contact details:  info@ilf-fund.org 

Trade register registration:   34333546

Tax registration:   820623775

Corporate objective, vision and policy plan

Impact-Linked Finance Fund corporate objective is:

(1) to provide finance to organizations, funds and projects that directly links financial rewards to the achievement of positive social and environmental contributions to the society based on the Design Principles for Impact-Linked Finance;

(2) to promote the practice of Impact-Linked Finance, being to link financial rewards to the achievement of positive social and environmental contributions to the society; and

(3) to perform everything (directly or indirectly) related or conducive to the above, all in the broadest sense.

The vision of Impact-Linked Finance Fund to comply with the corporate objective is set out in more detail on this website. The current policy plan can be found here. Impact-Linked Finance Fund does not have any employees and has no intention of having employees. Services are provided by Roots of Impact and iGravity and other service providers on an arm’s length basis.

Charitable status

Impact-Linked Finance Fund does not aim to make a profit and has filed a request with the Dutch Tax Authorities to be recognized as an ANBI (Algemeen Nut Beogende Instelling) and as such to have a tax exempted status under the laws of The Netherlands.

Remuneration and reports

The articles of association of Impact-Linked Finance Fund provide for remuneration rules. This means that the members of the board are entitled to non-excessive attendance fees and expenses. Currently Impact-Linked Finance Fund is in the startup phase and the members of the board do not receive any attendance fees or expenses. As such no other remuneration policy other than the remuneration rules from the articles of association apply. Impact-Linked Finance Fund doesn’t have employees and intends not to have employees. As such no employee remuneration policy has been established.

Our guiding values

The Foundation adheres to the following guiding values:

 

(1) Effectiveness:

We strongly believe that the impact performance of an enterprise can be affected by the way in which it is financed. We apply the Design Principles for Impact-Linked Finance in order to ensure maximum additionality and promote the most effective use of funds and engage in further development of these principles and its broader application in the field.

 

(2) Transparency:

We apply highest transparency standards across the whole process from selection, structuring of financial transactions and outcomes to verification. We regularly share information and relevant indicators with the Advisory Board and the Investment Committee in order to get guidance and support.

 

(3) Verification:

The verification of impact will go beyond process validation of outcomes and include the contribution of the financing for the enterprise and the broader impact of its activities including unintended effects whenever possible and feasible.

 

(4) Innovation:

We believe in the idea of “better terms for better impact” and advocate for applying this approach across business, policy and finance. We are committed to contribute to the field by sharing lessons learned and good practice as well as providing support to other actors engaging in Impact-Linked Finance.

 

(5) Inclusiveness:

We actively seek input and feedback from our stakeholders, in particular beneficiaries and organizations supported by the Foundation.

Roles & responsibilities

Overall responsibilities for the management of the Foundation rests with the Board of Directors in accordance with the Articles of Association, as outlined in more detail below.

The Board is supported by an Advisory Board that provides strategic guidance and is responsible for the amendment of key documents such as the Articles of Association and the General Investment Policy & Guideline. The Board appoints a Facility Manager for each dedicated funding window as well as (in collaboration with funders) a Thematic Investment Committee which will take the final investment decisions based on the recommendations of the Facility Manager. Details about investment decision making, impact measurement & management as well as investment reporting can be found in the General Investment Guideline.

The Board of Directors (BoD) is in charge for operational management of the Foundation (i.e. the executive team). The BoD appoints members of the Thematic Investment Committees in coordination with the funders of the respective funding window.

The Advisory Board is acting as an advisory body to the Board of Directors and comprised of independent industry experts. Responsibilities include among others to provide strategic advice to the Board of Directors, approve changes in the Articles of Association as well as approve changes in this general Investment Policy & Guideline binding for all Investment Committees.

The Thematic Investment Committee is set-up for every funding window (typically a program funded by one or more donors or catalytic funders) and representing key funders and financing and thematic experts to oversee the investment strategy and follows closely the pipeline as well as the proposed transactions. Members agreed upon by BoD and funders of relevant program.