Impact first Annual Review 2016 UBS Optimus Foundation Network
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Impact first Annual Review 2016 UBS Optimus Foundation Network
What does successful philanthropy look like? Cover photo | In this year’s Annual Review many of our pictures come from communities in Cape Town, South Africa. They show children and their families benefitting from programs funded by the UBS Optimus Foundation to give you an insight into the kind of environments in which we operate. Our partner Ilifa Labantwana, which facilitated the taking of these photographs, aims to provide quality early childhood development services at scale in South Africa, with a particular focus on the poorest 40% of the population under six years of age. Photos | Martin Rütschi (p. 1, 4, 6, 9, 19, 37, 38, 46, 47), Right to Play (p. 10, 11), Educate Girls (p. 16, 17), Living Goods (p. 20), We Care Solar (p. 21), Last Mile Health (p. 22, 23), Claire Freymond (p. 23), Kyle Weaver (p. 24, 25, 26), Innovation Edge (p. 27, 28, 29), Hope and Homes for Children (p. 30, 31), Rural Education Action Program (p. 32, 33), Possible Health (p. 34), Save the Children (p. 35) Publisher | UBS Optimus Foundation, Management, Augustinerhof 1, P.O. Box, CH-8098 Zurich, ubs.com/optimus Head of Project | Sarah Gonzalez Arza, UBS Optimus Foundation Design and Layout | Group Marketing & Communication Services, UBS Rounding | Numbers presented throughout this report may not add up precisely to the totals provided in the tables and text. Percentages and percent changes are calculated based on rounded figures displayed in the tables and text and may not precisely reflect the percentages and percent changes that would be derived based on figures that are not rounded.
Is my philanthropy working?
Is my donation making a difference?
Who are my trusted partners?
Where can I have the biggest impact?
Am I giving enough?
Am I doing enough?
Where are you in
your philanthropic journey?
You want to improve the lives and futures of vulnerable children around the world,
but do you know where to start?
No, I’m not sure Yes, I already give to
No Yes
where to start giving a good cause
Are you interested in innovative In that case, could your cause benefit
development financing instruments that from expert management of its activities
deliver social and result-based financial to increase its impact?
returns which can be recycled?
Yes, tell me about No, I’d rather support No, my cause Yes, I need expertise
Yes No No Yes
programs in this space more traditional, achieves exactly the in philanthropic
proven programs desired impact management
Are you sure? If you’d like
to know more about
Consider co-funding / co- how we measure, evaluate
designing innovative and manage programs
finance vehicles such as to create transformational,
Development Impact sustainable and scalable
Bonds, Program Related impact continue reading
Investments or Portfolio on pages 12 – 15.
approaches. Find out
more on pages 16 – 19.
Based on our extensive
experience across our various
portfolios we support tried Find out how we
and tested social impact can help programs
programs to help them get and other
to scale – you can find foundations and
some on pages 22, 26, 28 organizations go
and 31. from good to great.
See an example
from China on
page 33.
5
Table of contents
08 Editorial
10
Our achievements at a glance
12 How we ensure impact first
14 How we select, monitor and evaluate programs
16 Innovative financing instruments
18 hatever you want from your philanthropy
W
our offering spans the spectrum
Health 20 Serving the world’s h
ardest to reach
22 Going the last mile
Education 24 A better, brighter future
25 A bold and progressive approach
26 Rising expectations
Early Childhood Development 27 Laying the foundations for life
28 Getting connected
Child Protection 30 The right to a childhood
31 Coming home
China 32 No child left behind
33 Sharing a vision
Emergency Response 34 ntil children are thriving again, no community
U
can say it has fully recovered
36 Foundation governance
39 Organization of the UBS Optimus Foundation
40 The year in numbers
42 Working with excellent partners
7
Editorial
What we achieved in 2016
Dear reader,
In 2016, we achieved a new fundraising co-development opportunities, as well
record of CHF 61 million allowing us as our ability to connect them with
to improve the well-being and futures of like-minded philanthropists around issues
1.6 million vulnerable children globally. of mutual importance. Others are
looking for new ways to connect capital
While it was a very successful year, we and impact through innovative philan-
are not complacent. We, like many thropic and investing tools like Develop-
of our clients, recognize that the world ment Impact Bonds, Program Related
of philanthropy is changing fast. Investments and Public Private Partner-
Global attention is now focused firmly ships. And, while there is still a
on achieving the world’s ambitious place for a more traditional approach
Sustainable Development Goals (SDG), to philanthropy, one thing is for
and it’s clear that a huge amount sure; all our donors want their giving
of extra money will be needed to meet to achieve measurable and sustain-
those goals at a time when tradi able impact.
tional development funding streams
are under pressure. We believe We are here to guide philanthropists
philanthropists have a significant role through this world in transition,
to play in bridging this funding gap. and to show them they can make a real
And, as a preferred partner to philan- difference. And this year’s Annual
thropists around the globe, we’re Review is all about how we place and
working closely with them to ensure deliver impact first. Over the follow-
more, and much needed resources ing pages we answer the questions we
are brought to bear effectively and hear frequently: How do I know if
efficiently to address critical social I’m making an impact? How can I learn
challenges facing children, and, ulti- from and collaborate with others?
mately, to deliver on our shared How can I be more strategic? We show
aim of achieving the Sustainable you how we select, monitor and
Development Goals. report on programs to ensure they are
achieving the greatest possible
If we are to truly harness the power of impact, highlight how we are at the
private capital we must also create forefront in developing innovative
an environment that is fully transparent. development financing products to
While many philanthropists stand generate much-needed funding
ready to use their wealth to drive posi- that deliver social impact and result-
tive social change, too often they based financial returns, and hear
are unsure how best to achieve their from our inspiring program partners in
goals, or are disappointed with the their own words about how we
results. And this is why more and more have put the theory into practice and
clients are recognizing the benefits helped them transform their good
of our fully transparent and outcome- ideas into great, scalable programs.
focused approach.
Looking at 2016 in more detail, many
We know that each client is unique. of our most successful programs are
Some prefer to be more hands-on driven by innovation, and they are often
and value our bespoke program-design led by inspiring entrepreneurs, many of
capabilities, unique co-funding and whom received international recognition
8 · UBS Optimus Foundation Annual Review 2016
in 2016. For instance, Raj Panjabi, CEO Studies in Switzerland and China, innovative ideas that have the potential
of Last Mile Health, was named one will help inform the debate and shape to bring transformative, scalable
of Time magazine’s 100 Most Influential the direction of future child-protec- and sustainable benefits to the lives of
People. Living Goods’ CEO Chuck tion efforts. In November, we launched even more children. Our work is
Slaughter won the prestigious 2016 Skoll our Global Giving Campaign 2016. only possible because of our donors’
Award for Social Entrepreneurship. It included our groundbreaking Health: continued support, and we’d like
Dr. Gary Slutkin, CEO of Cure Violence, Going Further Portfolio, which is to thank them sincerely.
was named a Chicago Humanitarian designed to deliver targeted, large-scale,
of the Year by the US Fund for UNICEF. transformational change for the We hope you find this year’s Annual
And the Swiss-based Jacobs Foundation world’s most neglected communities Review an engaging, enlightening and
awarded its Best Practice 2016 award while allowing donors to spread enjoyable read.
to our partner Investing in Children and their philanthropic risk and increase their
their Societies. chances of supporting the success
stories of tomorrow. These achievements,
Other highlights from the year included and our many other successes in 2016,
the first-year results of the world’s first helped strengthen our position as Best Regards,
Development Impact Bond in education, an innovator and thought leader in
which is pioneering a new way to delivering philanthropic impact.
encourage private sector investment to
fund development programs and is We’re proud that an ever growing
100% focused on measurable impact. number of UBS clients and employees
The results show it is on track to see us as their philanthropic partner Sergio P. Ermotti
meet its targets in terms of social and of choice. Their passion combined with Chairman of the UBS Optimus
result-based financial returns. We our expertise has made a fundamen- Foundation Board of Directors
participated in the Lancet study into tal difference to so many children’s lives.
Early Childhood Development. And However, we are far from satisfied
we published the results of the Optimus and want to do even more, even better.
Study South Africa, the first-ever nation- To that end, we will continue to
ally representative study into childhood work closely with our donors and front-
sexual abuse in South Africa, which, line partners to ensure programs are Phyllis Costanza
together with two previous Optimus delivering, as well as seeking out other CEO, UBS Optimus Foundation
9
Our achievements at a glance
In 2016, we achieved a new fundraising record of CHF 61 million allowing us to improve
the well-being and futures of 1.6 million vulnerable children globally
Learning and playing at early childhood care
and development centers in china.
Health 1m children benefitting from
interventions that cure disease or
prevent illness
112,000
Adults trained, educated or counselled
Education
112,000
162,000
Parents engaged in improving their child’s education
Children receiving
a better education
10 · UBS Optimus Foundation Annual Review 2016Child protection
Adults educated or counselled to
reduce violence against children 20,000
75,000
Children benefitting from interventions
that reduce abuse, violence or neglect
Early Childhood Development
Children developing fine motor
41,000
Parents learning now to nurture and
stimulate their children so they can reach
186,000
and cognitive skills their full potential
11How we ensure impact first
The questions we consider before we agree to fund a program
1 2 3 4
Addressing needs Innovation Evidence Capacity
strengthening
Does this opportunity Is this opportunity Is there sufficient data Will this opportunity
address needs of unique and in the area to ensure help to strengthen
vulnerable children? differentiated from positive impact and local human resources
existing initiatives? wider scale adoption? and / or build required
Is this opportunity infrastructure?
feasible, scalable and Can this program Is there an ongoing
replicable? catalyze a significant assessment process
change in thinking, in place?
bringing the
field f orward?
12 · UBS Optimus Foundation Annual Review 20165 6
“Bridge the gap” Sustainability
Is this a high-need area Will this opportunity
that is receiving contribute to improved
insufficient attention? policy and practice to
ensure lasting benefits?
Does this opportunity
leverage or involve Will there be lasting
complementary positive outcomes for
resources? vulnerable children?
We start with knowledge. We have conducted detailed Evidence that a program can actually deliver is important,
landscaping studies in the areas of child education, but so is strong leadership. That’s why we seek outstanding
health, and protection to identify the levers of change and philanthropic entrepreneurs who have local experience
opportunities that will make a real difference. and the trust of the communities they serve. Based on years
of experience we ask robust questions and challenge their
Programs may be too “young” for us to add value. This assumptions with a level of rigor that few can match. Only a
means they are still in the start-up phase and lack sufficient very small number of programs meet our tough standards.
evidence for us to evaluate. At the other end of the scale
programs may be too developed and are ready to be funded Our knowledge and experience, robust selection criteria, and
and guided by larger organizations such as NGOs and continuous monitoring and guidance of programs helps
governments. us separate the mediocre and the middling from the very best
programs, the “pearls” that have the potential to be truly
Based on this understanding, and often building on our transformative, scalable, and sustainable.
existing relationships with partners and our extensive
networks, we search for interventions and partners who offer In short, clients see that we place impact first and foremost,
something special. This can be an inspiring entrepreneur and it’s why we are the preferred philanthropic partner of
or a new technology or intervention model that bridges a gap choice for an ever growing number of philanthropists around
that’s preventing children from surviving and thriving. the world.
13How we select, monitor
and evaluate programs
We take measured risks based on hard facts to deliver transformational outcomes
Selection Program management Phase-out
and monitoring
Our business-minded, entrepre- We monitor the program We plan how to exit a
neurial approach to philanthropy closely, making adjustments program even before we
means we never assume a where needed, and work start. That means we look for
program will work just because with our partners on the best programs and partners with
it seems like the obvious way forward helping them the ability to grow for
solution. We challenge program manage and improve their maximum impact. And we
assumptions rigorously, and only performance and capacity. define the pathway to help
very few meet our high stan- them achieve this. Towards
dards. And all our programs are the end of the program’s
evaluated by our in-house or timeframe we look at scaling
independent, external experts. it to reach more children in
more places, often with the
help of third-party funders
who have been attracted by
the program’s success. We
may also look at the possibili-
ty of using the program’s
success to influence national
policy changes.
14 · UBS Optimus Foundation Annual Review 2016People get involved in philanthropy for a variety Our approach to selecting, monitoring and evaluating has
of reasons. But all too often philanthropists find that it’s not been refined over many years. We learn from experiences and
that easy to make a real difference. Effective philanthropy use them to inform our approach, which is transparent,
demands an intimate understanding of the issues. It takes dynamic and evolving constantly. And our donors see that we
time and resources to establish facts and monitor and know how to get more of the money to where it can
measure results. Finding the right program, balancing the do the most good. And it’s why more and more of them are
risks and social returns, and knowing that funds are coming to us to help them achieve their philanthropic goals.
being well spent is not straightforward. And that’s where
we come in.
Expertise Transparency Independent Evaluation
UBS is unique in the We can account for all our We don’t expect you to only
financial industry in that funding and its impact accept our word on a
it has a Foundation because we require detailed program’s success, and that’s
staffed with philanthropic reports on previously why we work with indepen-
experts who use their agreed targets for success. dent, external evaluators to
know-how and experience If issues are identified, determine through rigorous
to select, monitor and we move swiftly to help assessment whether a
guide program partners to partners resolve them program is delivering the
ensure p rograms can and get back on track. maximum possible impact for
grow and improve the children.
lives and futures of as
many children as possible.
15Innovative financing instruments
We are at the forefront in developing innovative development
financing instruments that generate much-needed funding and deliver social
impact and result-based financial returns
Girls back in school and learning in Rajasthan, India,
thanks to the Educate Girls Development Impact Bond.
Social and financial innovation Putting the theory into practice
The world’s ambitious Sustainable Development Goals come In 2015, we launched the world’s first Development Impact
with a huge price tag at a time when traditional funding Bond (DIB) in education. DIBs are a pioneering new way
streams are under pressure. We believe that philanthropists to encourage private investors to fund programs and are 100%
will have a significant role to play in bridging this funding focused on the outcomes achieved. This DIB is funding
gap. And, while more money is needed for sure, it’s also about a three-year education program that is being implemented by
how that money is used. While many philanthropists are award-winning Indian NGO Educate Girls in a remote
ready use their wealth to drive positive social change, too rural district of Rajasthan, which has particularly poor indica-
often they are put off by, or disappointed with the results. tors for girls’ education. It is entirely focused on a set of
It’s clear something needs to change. social impact outcomes – enrollment into primary education
and students’ progress in English, Hindi and maths – that
The good news is that an increasing number of philanthropists are rigorously measured by an independent evaluator. The
are seeing the benefits of instruments such as Development ultimate goal is to improve education for 15,000 children,
Impact Bonds (DIBs), which have the potential to harness much- 9,000 of them girls.
needed private capital and deliver the results donors
should be entitled to expect. DIBs provide clarity as the value- First-year results show the program enrolled 44% of all out-
for-money and impact elements are clearly defined. of-school girls identified, and has achieved 23% of the
The question of how best to deliver is less prescribed, empow- total target for learning progress. Based on this, the UBS
ering front-line implementers to do what they do best and Optimus Foundation as the upfront investor would have
encouraging them to innovate to overcome challenges as they already recouped approximately 40% of its initial investment.
grow. And, importantly, DIBs are solely performance driven, In short, this DIB is a proof of concept to show investors
meaning a donor’s risk is actively managed by people who how such innovative financing models can contribute
understand what is happening on the ground as well as the to societal gains while offering result-based financial returns,
wider intervention context. which can be recycled into future programs. And, based
on the successes and lessons learned from this first DIB, we
Our financial innovation shelf provides solutions for donors are now developing the next generation of DIBs focused
who want to give on condition that real, sustainable impact on improving maternal and newborn health and education,
is achieved, and for others seeking to support programs and which may be open to a wider pool of our clients.
where there is both social impact and, potentially, a recycla-
ble, result-based financial return.
16 · UBS Optimus Foundation Annual Review 2016Not the only game in town Challenging the status quo
While we believe instruments like DIBs can bring new finan- Catalyzing such new instruments will require the accep-
cial flows to social ventures, we don’t claim that they are tance of finance and inputs from many sources – philanthro-
always the right answer. That’s why we are developing a suite pists, investors, bilateral and multilateral donors, as well
of different options, including Program Related Investments, as the private sector. Encouragingly, we have seen that this is
Loans for Impact and Philanthropic Portfolio models. A already happening as donors realize the huge potential
growing organization’s needs, challenges and opportunities of co-creation and co-investment. Vehicles that combine the
change over time. And many aren’t equipped to cope. best of these inputs and cultures can create much more
They need scaling partners who can provide things like supply than the sum of their parts. And while finance is crucial, the
chains, brand development, technical know-how, advice, combination of skills and networks new instruments can
mentoring, and partnerships, or help to broaden their investor bring is potentially even more potent.
base. For example, a funder would provide a PRI loan to an
organization it wants to support. The loan fulfils the charitable
objectives of the lender, supports the front-line implement-
er to grow its organization and impact, and is repaid with
interest. This allows lenders to achieve measurable social
impact and recycle their growing capital resources time
after time.
Many donors only have access to a single program, which
may fail, or have only limited impact. And too many promising
programs are being overlooked. And that’s why we have
launched our new Health: Going Further Portfolio, which has
a mix of proven and promising programs. Similar
to an investment fund in structure, it brings together highly
effective partners with innovative solutions designed to
save lives and improve health in some of the world’s most
under-served communities. By pooling funds more can
be directed to where it is needed to allow organizations to
grow and reach more people faster. And it spreads the
risk, allowing a donor to support proven programs and
increase their chances of funding tomorrow’s success stories.
17Whatever you want from
your philanthropy, our offering
spans the spectrum
Our focus on measurable social and financial return
Social return Loans for Investment for social
social return and financial returns
1 2 3
Philanthropic Loans for Impact Development Impact
Portfolios Bond
1 2
Philanthropic Portfolios Loans for social return
Program excellence and management expertise Program Related Investments
Choose from our diverse portfolio offering of over 100 high- Rather than simply giving away money through grants you
impact programs across the globe, or allow us to use our can consider a Program Related Investment (PRI). It allows
expertise to direct your giving to programs that are currently our UK clients to invest in the form of a loan with the aim of
in need of funding to grow and increase their impact. You can regaining the initial investment plus a reasonable rate of
also mandate our specialists to build and run a bespoke return. This return means you can recycle your philanthropic
program. capital into future programs. And it provides far greater
access to finance for social organizations desperately in need
Philanthropic Portfolios of funding to grow and reach more vulnerable people.
Our portfolio offering provides donors with access to a And the PRI’s focus on value for money and impact helps
diverse set of world-renowned partners who are helping drive build stronger, more sustainable socially minded front-line
the large-scale global change needed to ensure children service providers.
survive and thrive. It bundles high-quality, result-focused pro-
grams targeted at a specific area of concern, allowing you
to maximize your immediate and longer term philanthropic
impact while reducing the risk of only supporting a single
program. And donations can be matched by partner organiza-
tions increasing the reach and impact of your donation
significantly.
18 · UBS Optimus Foundation Annual Review 20163
Investment for social and financial returns
Loans for Impact Development Impact Bonds
Loans for Impact are a type of PRI, an innovative finance Consider co-funding or co-designing a Development Impact
solution designed to seed and scale funding for promising Bond (DIB). We launched the world’s first Development Impact
social enterprises that seek to achieve both a social and Bond in education and are currently developing a shelf of
financial return. So how do they work? An investor makes a larger scale next generation DIBs, which have the potential to
loan to a social enterprise, which has to pay back the invest- draw in significant and much-needed private capital and are
ment. And if it achieves a predetermined social target, 100% focused on outcomes. DIBs work by getting an investor
a philanthropic donor pays out an extra return to investors for to pay up front for the costs of an intervention that is then
every outcome achieved that would not have been possible measured by clear, predetermined metrics. If the intervention
without the initial investment. It is proving an attractive option succeeds in achieving the goals, the outcome payer will pay
as investors receive a risk-adjusted return; outcome payers the investor back based on the performance. DIBs can deliver
achieve far greater leverage for their philanthropic dollars to a return, which can then be rolled over into future programs
achieve social impact; and social enterprises access low-cost increasing the reach of a donor’s giving even further.
capital, allowing them to go deeper into social impact without
the pressure of offering market-rate financial returns. Such
instruments bring together the interests of investors, social
enterprises, and philanthropic outcome payers to achieve
financial return and measurable social impact.
19Health
Serving the world’s
hardest to reach
Community health entrepreneurs deliver
lifesaving products and information to children
and families in Uganda.
There is both a strong social and economic case to Just as importantly, the evidence generated has led to
investing in child health. Despite this, less than a fifth change not just within communities, but also at a national and
of global health funding is spent on children, who international level. For instance, independent researchers
evaluated our partner Living Goods in Uganda, with results
often lack access to low-cost, effective healthcare.
showing the model can reduce child mortality for children
under five years old by up to a 27% for under USD 2 per child
Children still die at 20 times greater rates in remote and per year. The Chinese Government’s National Institute
underserved areas in Bangladesh, Liberia and Uganda of P arasite Control is planning to scale behavior-change
than in Switzerland, the UK, the US or Hong Kong. Why initiatives inspired by the Magic Glasses program in Western
is it that healthcare works the least for those who need China, which demonstrated a 50% reduction in parasitic
it most? While illness is universal, access to care is not. worm reinfections. Last but not least, the Liberian Govern-
ment has partnered with Last Mile Health to launch the
Children and caregivers often lack the relevant health
National Community Health Assistance Program, a nationwide
knowledge and, in poor areas, the number of well-
community health workforce initiative, to extend lifesaving
trained and motivated health workers is insufficient. care to every Liberian, including 200,000 children, by 2021.
To address this, our approach is to work in partnership Much has been achieved, but there is much a lot to do. Six
with local actors and governments to support million children still die every year due to preventable causes.
simple, low-cost, locally available solutions that can And that’s why we will continue to seek out new social
demonstrate impact and have transformational and financial innovations, such as our Health: Going Further
Portfolio, that are focused on impact first and have the
benefits. Thanks to the generosity of UBS clients,
potential to unlock the greater financial resources necessary
employees and UBS itself, more than one million to improve even more children’s lives.
children benefitted from our programs focused on
improving access to quality health care in 2016. Going Further
Our Health: Going Further Portfolio is a fund-like social return
mechanism. It supports a diverse set of world-renowned
partners with best-in-class, result-focused programs that can
drive much-needed large-scale global change for the ben-
efit of children. By the end of 2016, the portfolio had already
raised CHF 5 million from donors who clearly see the
benefits of such an approach.
20 · UBS Optimus Foundation Annual Review 2016Community Health
Workers in Nepal with
the Solar Suitcase.
The portfolio focuses on a set of approaches that have dem- Living Goods: In many countries people lack access to
onstrated cost-effectiveness in achieving results. It includes quality, affordable health and food products. Through an
programs that provide well-trained and supervised local health “Avon-like” approach women in the program provide access
workers who can connect with, advise and educate local to much-needed products and information to improve family
populations; provide essential equipment and services to health. And, as micro-entrepreneurs, they also earn a living for
those who need them most; and utilize m obile phone themselves and their families.
applications that can increase a health worker’s reach and
capacity. We Care Solar: Each year, over a quarter of a million mothers
die of pregnancy-related complications and nearly one
The main benefits of this portfolio approach are that it gives million babies die on the first day of their life, often in health
promising programs access to additional funding, thereby centers without reliable electricity. The Solar Suitcase is
enabling the best ideas to grow faster and reach the maxi- low cost and easy to use and captures the sun’s energy during
mum possible number of people. It also allows donors to the day to provide a reliable source of electricity at night
maximize their immediate and long-term philanthropic impact in health clinics in poor rural areas. This powers lights and
while spreading risk and increasing their chances of support- medical and communication equipment, transforming the
ing tomorrow’s success stories. chances of survival for mothers and babies.
At the end of 2016, the following four portfolio scaling mCARE: Millions of newborn babies die each year, many
partners had been identified: in poor areas where births usually occur in the home. mCare
uses simple mobile-phone-based technology to provide
Last Mile Health: In Liberia, Last Mile Health ensures pregnant women with information and link them to a local
access to quality primary health services for those living in community health worker and an emergency neonatal
remote communities. Its workers are members of the care team. It has increased the number of women accessing
communities they serve and bring critical health services to antenatal services by 260%.
the doorsteps of people living in some of the world’s
hardest to reach places. Looking ahead, over the next four years the funds raised
through the portfolio will help train and support 700 front-
line health workers to reach over 900,000 people with
life-saving, quality healthcare, and will support Light Every
Birth initiatives in Liberia and Uganda.
21Health
Going the last mile
How many people does one single
doctor have to cover?
Switzerland
250
Liberia
80,000
2007 2013
Source: World Bank, 2010
How it all started The beginning of
a long and fruitful
relationship
In 2007, a group of Liberian civil At the UBS Optimus Foundation
war survivors and US health workers we immediately recognized the
came together with the aim of promise of this dynamic organiza-
improving the healthcare situation tion and its inspiring founders.
“A health worker for and Last Mile Health (LMH) was But to get to the next level it was
everyone, everywhere, born. clear to us that more evidence
was needed about the effective-
every day – that is It was soon clear that the greatest ness of their model. And so we
the vision of Last Mile need was in remote communities.
The team’s solution was to recruit,
focused our efforts on monitoring
and evaluation to provide
Health” train, equip, manage, and pay local the e vidence to government and
people to provide lifesaving health others that the program really
services to their communities. was worth scaling up.
Understanding local sensitivities
and having the trust of their
neighbors enabled these health
workers to create a strong link
between their communities and
the public health system.
22 · UBS Optimus Foundation Annual Review 2016Last Mile Health (LMH) in Liberia, a success story for UBS client donors and for children.
Taking good programs and making them great – how we nurture promising
programs with the potential to deliver targeted, large-scale, transformational change
for the world’s most neglected communities
2014 2016
Ebola strikes – how we From good to great
worked together
The deadliest Ebola outbreak in recorded history struck Post Ebola there was increasing
Liberia in 2014. The epidemic claimed the lives of more than recognition that LMH’s model had
11,000 people in six countries. Liberia was among the great leadership and tremendous
hardest hit, with more than 10,000 cases and 4,800 deaths. potential for growth. It had been
tried and tested in the most
As the epidemic spread it severely interrupted the provision demanding circumstances and not
of basic healthcare in Liberia’s already vulnerable health found wanting. Based on this we
system. LMH supported its front-line health workers to stop supported LMH’s expansion to
the spread of the epidemic while maintaining access to basic more regions in Liberia as well as
healthcare, but it could not do this alone. We recognized their work with the Ministry of
this and, based on our strong existing relationship with LMH, Health, which was looking at and
we were able to react swiftly and decisively to provide now has adopted LMH’s model
much-needed funding for safety training and equipment to to bring better healthcare to more
ensure health workers could keep safe, and keep serving than one million Liberians. We
their patients. LMH’s efforts not only stopped the spread of continue to work closely with LMH
Ebola in their districts it also provided hope to other areas. providing reliable, unrestricted
We’re proud that UBS clients and employees came together funding and helping them chart
and provided over CHF 2 million to support LMH. Liberia the next steps on an amazingly
was the first affected country to be declared free of Ebola. successful journey to reach their
vision of a health worker for
everyone, everywhere, every day. 23Education
A better, brighter future
High-quality affordable schools
run by the Rising Academy
Network in Liberia provide much-
needed quality education
The benefits of a high-quality education for individuals, It is against this backdrop that we have developed our
families, communities and nations are undisputed. education strategy. While we support governments’ efforts
And education is also the key to achieving many of the to improve state schooling, there is also an important role
to be played by the private sector in addressing the education
world’s Sustainable Development Goals. It helps
quality gap. That’s why we’re building Public Private Partner-
break the cycle of poverty, reduces inequalities, empow- ships, which combine the best of private sector efficiency with
ers people to live healthier lives, fosters tolerance, public sector accountability at a cost governments are able
and contributes to more peaceful societies, not to to sustain. And we’re developing Development Impact Bonds
mention the simple joy that learning can bring. and Program Related Investments, which create result-based
incentives for non-state schools to focus on quality and
We know all this, and yet today there are 59 million equitable access.
primary-school-aged children around the world who are
We also focus on reaching children left behind by the system
not in school, and 250 million children will not learn
through scalable transitional learning solutions that accelerate
basic literacy and numeracy skills. There has undoubt- learning, support student reintegration, and reach marginal-
edly been global progress in getting children into ized populations to ensure all children are in school and
schools and learning, and in general state schools are learning. Last but not least, recognizing the disruptive role
improving, but not fast enough. And there has been that technology can play to overcome barriers of cost
substantial growth in the number of nonstate schools, and scale in education, we support educational technology
but quality is generally poor and access is not uni (EdTech) programs that help with personalized learning,
teacher training and data collection and communication.
versal. Put simply, education aid is not going where
it is most needed, and is not reaching the most
marginalized in society.
24 · UBS Optimus Foundation Annual Review 2016Education
A bold and progressive
approach
Partnership Schools for Liberia
A bold and progressive new approach New standards in schooling
President Ellen Johnson Sirleaf and Education Minister George The long-term cost of PSL is equal to what many governments
K. Werner launched Partnership Schools for Liberia (PSL) in the region already spend on their schools. And closer
because they recognized that the status quo is unacceptable. monitoring and performance management, innovative learning
The public education system in Liberia is under severe models, and additional resources should help bring Liberia
pressure. Falling commodity prices, civil war, and the recent to the same level as many neighboring countries.
Ebola crisis hit the economy and, as a result, investment
in public services hard. Teachers often don’t get paid and have PSL has already enabled the development of standard policies
almost no career opportunities. Teaching standards are such as extending school days to 3 p.m., increasing literacy
low and, as a result, only 20% of children complete grade 12. hours, providing free early childhood education, and adding
In rural areas, 65% of women and 35% of men aged 15 – 24 certified teachers to the payroll. But the initiative is a pilot
are illiterate. Liberia’s government wants to change this and, like any good pilot, it should be judged on measurable
and is looking to inject much-needed school management results delivered at a cost the government can afford.
expertise into the public system.
Our involvement in PSL, a government-led Public Private
Partnership (PPP) pilot initiative, is targeting improvements
for 27,000 children in 93 primary schools. The idea is to get
learning outcomes right in a small number of schools, and
then to scale up. A coalition of partners is involved including
our partner, ARK, via its Education Partnerships Group.
Evidence suggests that, where appropriate, separating the
financing of education from its provision can improve learning
outcomes as it allows each party to focus on their area of
expertise. In Liberia, the early evidence is that this approach is
effective, with enrollment levels up in year one. Although
these schools are now privately managed all commissioning
decisions, quality assurance and regulation remain the
Ministry of Education’s responsibility.
25Education Rising Academy Partnership Schools
The government of Liberia launched a
Rising expectations
bold and deliberately experimental pilot
program to explore whether bringing
in operators from outside government
could help address the chronic crisis of
education quality in the public system.
Improving education outcomes in Liberia With help from Absolute Return for
Kids (ARK), a public private partnership
was created between government
and private organizations establishing
Partnership Schools for Liberia. As
one of the eight organizations chosen
to pilot, the Rising Academy Network
began operating five partnership
schools in September 2016. The Rising
Academy Network also operates
eight Rising Academies in Sierra Leone.
Rising Academy partnership
schools improve the quality of
teaching and learning in
existing government schools.
Interview with Paul Skidmore It’s early days, but we’re very excited about what’s already
CEO, Rising Academy Network been possible. Internal literacy tests show that the average
first-grader in one of our schools can now read better than
“The good news is that across the developing world more and the average third-grader could when we started in September.
more children are in school, but the bad news is they’re
not learning. In Liberia, the literacy rate for young women Without the UBS Optimus Foundation’s early backing we
who have completed six years of primary school is just 7%. wouldn’t have been ready to participate in the Liberia
program. As an early supporter of ours in Sierra Leone,
Last year the Liberian government launched a pilot project – the Foundation helped us seed the Rising Academy approach
Partnership Schools for Liberia to see whether the private from support for curriculum research to help with financial
and not-for-profit sector might deliver better outcomes in processes and the way we use data. We’ve been able to take
government schools. We were chosen to operate five what we’ve already developed and apply it in Liberia. We
schools starting in September 2016. share with the Foundation an interest in results-based financ-
ing for education delivery. So, we’re excited where our
The starting situation was very challenging. Schools had collaboration might take us in the years to come.”
about one-third of the staff they needed. So, a big part of
our challenge has been to make sure the schools have quality
80%
teachers. We recruited energetic graduates from Liberia’s
teacher trainer colleges.
The vast majority – –
It’s important to us that our teachers are well trained and of the parents of Rising Academy
supported. We provide preservice and on-the-job training, students are subsistence farmers.
and detailed lesson plans for every lesson, created by
our team of specialists. And, in each of our schools we’ve
appointed a master teacher who is not only a skilled
teacher in his or her own right, but also good at seeing what More than 92% of women in Liberia
others are doing well and what needs improvement.
aged 25–34 who have
completed primary school still can’t read.
26 · UBS Optimus Foundation Annual Review 2016Early Childhood Development
Laying the foundations for life
Driving innovation in early childhood
development forward, to create bold ideas to
change the life experiences of children.
The first five years of a child’s life are crucial. It’s during To address this, our strategy focuses on promoting nonfor-
this time that eighty percent of brain development mal early childhood development channels that have the
occurs and the physical and mental foundations of a potential for scale. We work with our partners to identify and
utilize existing organizations and social structures such as
child’s future are laid. Damage to, or lapses in a child’s
local savings groups, community health workers, community
development during this period are often irreversible. gatherings, and supermarkets. We focus on cost-effective,
integrated approaches that go beyond just early education and
But poor health, undernutrition and inadequate learning can integrate programs targeted at improving children’s
environments that fail to nurture and stimulate mean health and protection. And we are building cost-effective
many children never reach their full potential. In fact, Public Private Partnerships that deliver robust private sec-
200 million children under five years of age worldwide tor efficiency alongside public sector accountability. Finally,
do not receive the appropriate care and support to we work with our partners to strengthen community
and parental engagement to ensure we reach the majority
become physically healthy, mentally alert, and emotion-
of young children, including those from marginalized
ally secure. communities.
Despite the importance of early childhood development
less than 2% of global education funding is earmarked
for early learning. And early education, child protection,
and health programs are rarely integrated, which reduces
significantly their benefits. The effects reach far beyond
the individual child and impact families, communities
and the development of countries.
27Early Childhood Development
Getting connected
The objective of Innovation Edge
is to create innovative solutions to
early learning challenges.
Interview with Sonja Giese Innovation Edge
Executive Director, Innovation Edge Innovation Edge was set up as an experimental
platform in 2014 by a group of funders looking to
“Our goal from the start was to be experimental with early push the envelope by supporting innovation in
childhood development. All our funders knew that investing Early Childhood Development (ECD). The objective
in multiple innovations was higher risk than normal, but was to create innovative solutions to early
their response has been really refreshing. The UBS Optimus learning challenges. By connecting unlike minds,
Foundation understood this was part of the process from individuals and organizations are brought
the get-go, noting in their briefing, ’If everything works per- together to create bold ideas to change the life
fectly, we’re not being innovative enough.’ experiences of children. The best ideas receive
funding and support to test for feasibility,
We learned a lot in the first two years about how to find bold effectiveness, and potential for impact and scale.
ideas for improving early learning. And how to test them. The ultimate goal is to drive revolutionary
We’ve started to build out a portfolio of projects and a bank and e volutionary approaches to innovation for
of processes. Now we’re continuing to innovate around early learning in South Africa and beyond.
processes – how to find ideas, iterate quickly and have fast
learning cycles. But we’re also putting more of an HearScreen
emphasis on how to scale successful projects to hundreds Hearing problems can negatively affect children’s
of thousands of children. performance in school. Children in low-income
communities not only lack access to screening for
In order to make this all work, it’s been important to be hearing loss, they also are more likely to have
able to draw on the funders’ diverse networks. We realized hearing loss. One of Innovation Edge’s projects is
that unless we’re able to make new connections, we’ll hearScreen, a mobile application modeled after
just go around in circles with the same ideas. The Foundation a similar product in the occupational health field.
has been an incredible resource in helping us make the Screening children for hearing loss normally
connections so critical to innovation helping us establish requires professional services through health facili-
an international advisory group. ties: audiologists, optometrists and very expen-
sive equipment. This innovative app decentralizes
screening, allowing lay people in the commu-
nity to use the app and calibrated headsets, with
an automated referral to the nearest health
facility when needed.
28 · UBS Optimus Foundation Annual Review 2016We continue to grow our portfolio, aiming for fifty investments ShopTalk
by the end of 2019. We want to have taken at least seven of Children who develop strong language and
these to scale on a route to sustainable and ongoing growth. communication skills are more likely to start school
ready to learn. When caregivers talk with chil-
The distinct perspective of the Foundation has helped broaden dren it expands their vocabulary. Based on a study
our scope when thinking about investment. At the moment by US researchers, ShopTalk is an Innovation
we provide grant funding, but we really want these projects to Edge in-store campaign that promotes positive
get to the point where there will be serious investment interactions between young children and care
opportunities for large-scale funders. But the only way we can givers as part of the shopping experience. Through
do that is by creating a bridging fund to help projects get intriguing floor stickers and posters throughout
from being able to absorb USD 1 million to being able to the store, interaction is promoted that helps with
absorb USD 10 million. early language development. Evaluation has
shown increased positive interactions between
In addition, the role that the Foundation plays for expansion caregiver and child, taking an everyday space
beyond South Africa will be really important. The and turning it into an engaging space that promotes
priority is to move where partners have existing networks positive parenting.
and partnerships.”
Workflow boards
All Early Childhood Development (ECD) centers
in South Africa must be registered with the Depart-
ment of Social Development (DSD) to access
government funding so that young children can
get necessary care. It was taking about twelve
months to register each center, preventing access
and support. This Innovation Edge project at
the level of system innovation took a solution from
the private sector. Mimicking the production line,
ECD centers started using job cards on whiteboards
to break down the steps. The innovative process
allowed offices to see where the bottlenecks were
and resolve them, reducing registration time to
six weeks.
29Child Protection
The right to a childhood
Every child has the right to a
safe childhood, free from violence
and abuse.
Millions of children around the world are abandoned, Anti child trafficking and slavery
abused and exploited. While each child’s story is unique, Trafficking and slavery is big business, with estimated annual
the root causes are all too common; poverty, profits of USD 150 billion. By its very nature this issue is
hidden, but we know that at least six million children around
family breakdown, and oppressive social norms. This
the world are involved in forced labor, including sexual
is unacceptable, and it’s why we have developed
exploitation. These children are suffering terribly and
our child protection strategy, which is framed around are being denied a childhood. We support programs that
the world’s Sustainable Development Goals on work closely with communities or industries at risk of
child p
rotection and the right to a childhood, and being involved in child trafficking and slavery. While rescuing
targeted at the areas our landscaping analysis a single child ends their torment and restores hope, it’s
has shown have the mostpressing need for action. clear that work is also needed to stop it happening in the first
Our strategy is based on two pillars: place. By working across multiple points in the value
chain, our partners disrupt the use of forced and child labor
and significantly and sustainably reduce the prevalence
Families not orphans of trafficking in vulnerable communities.
We are working to prevent family separation and to build the
right care structures for separated children. It’s estimated that
there may be as many as eight million children globally
in institutional care, sometimes called orphanages, and that as
many as 80% of these children may not actually be orphans.
Many are there because families lack the support to care for
them, or mistakenly believe such institutions provide more op-
portunities. The evidence is clear. Institutional care is very
damaging to children. For every three months in institutional
care a baby’s development is stunted by one month. Even
well-run institutions can’t offer the loving care and attention
children need to develop fully. Our programs support
governments in developing alternative care for separated
children. We also support programs that enable
vulnerable families to stay together.
30 · UBS Optimus Foundation Annual Review 2016Child Protection Hope and Homes for C hildren
Hope and Homes for Children
Coming home
(HHC) is working alongside
governments and civil society
organizations in over 30 countries
to dismantle orphanage-based
care systems. With a core belief
that children have the right to
grow up in a loving family environ-
ment, HHC’s work focuses on
closing institutions, getting children
into stable families and working
with governments to change poli-
cy. With a track record of success-
ful program implementation in
several countries in Eastern Europe
and East Africa, HHC’s South
Africa program is new. The One
Child One Family pilot project
there aims to create a successful
model of deinstitutionalization
to be scaled countrywide.
Uwera, aged 4, spent her earliest years in a Rwandan orphanage.
Now she has the love and protection of a family.
Interview with Lourenza Foghill For children with no option of returning to the family, the
Project Director Hope and Homes for Children, South Africa next option is for long-term foster care. The aim here is
for a forever solution that provides the family setting and
“Although South Africa has strong child protection laws, in permanency that children so often lack in institutions.
practice the system relies heavily on institutionalization as the
first choice in protecting children. But we know that institu- I’m impressed with the Foundation’s emphasis on effective-
tional care is damaging to children and that family-like settings ness. Our performance management system will give us
are best. So, we’re working with the government in South the ability to measure in real time and course correct. And it
Africa to close institutions and focus resources on prevention. gives us credibility and legitimacy, going a long way to-
ward closing the gap between government and civil society.
The UBS Optimus Foundation supported us in conducting a It’s really nice to work with people who have a real under-
comprehensive study of the country’s orphanages. This has standing of development and can walk the path with you.”
been key in obtaining the level of cooperation and partnership
that we have with government – allowing us to give
them the real story of what’s happening in these institutions.
Now we’re implementing our One Child One Family pilot proj
ect in three Gauteng Province institutions. To make it possible
for us to close those institutions without placing children
There are an estimated
in danger we are first conducting a thorough assessment of
the children, their birth families and communities of origin.
We’ve developed a plan for emergency foster care to stop the
8 million
children in institutions worldwide.
flow of children into institutions. By temporarily placing an
at-risk child with a trained family we are able to act in the best
interests of both children and government. With the proper
risk assessment and support, the goal is to place the child
back with the family of origin. Over 20,000 children are estimated
to be in institutional care in South Africa.
31China
No child left behind
Children in China benefitting
from better vision.
Parents in China, just like those the world over, want We focus our efforts on four core beneficiary groups in
the best for their children. But too often extreme mainland China: children from ethnic minority communities in
economic circumstances and cultural barriers mean their remote regions; left-behind-children in rural areas; migrant
children in urban settings; and children from extremely poor
children are unable to thrive and fulfil their true
families in cities. We support parenting, early childhood
potential. This perpetuates the cycle of poverty into the development, health, behavior-based prevention and protec-
next generation. The government recognizes this and tion, as well as social service programs. And together with
has made significant progress in addressing educational, our donors we provide funding to build the capacity of our
health and protection issues, in particular for local partner organizations to enable them to increase the
marginalized communities. But there is still much reach and impact of their programs, including expert advocacy
work to be done. advice to demonstrate to the government the benefits of repli-
cating and scaling successful programs.
Together with our donors we are working to ensure that
every child, regardless of who they are and where they are
from, receives a quality education, healthcare, and the
right to a childhood. To that end, we support government
efforts through a strategy centered on directly improving
vulnerable children’s well-being, enhancing local partners’
capacity, and bringing like-minded donors together around
issues of mutual interest to deliver to greater impact.
32 · UBS Optimus Foundation Annual Review 2016You can also read
