Message from the Board of Directors We are pleased to present this triennial Strategic Capacity plan for 2015-2017. The Board of Directors and the administrative personnel of the Foundation worked collaboratively to produce this document, aware that, in order to fulfill its mission in complex financial times and to improve the overall impact of its social investments, the CRUSA Foundation must adapt a strategic orientation that is more centered, collaborative, and aligned with national goals and the financial priorities of other national and international donors. Our decision to focus resources on the thematic area of Strategic Capacity was made in the profound belief in the role that the CRUSA Foundation should and must play in improving the country’s competitivity, fundamental for human development and economic growth. This decision, and an agenda developed in coordination with public, private and community organizations, seeks to improve the coordination of resources and visions in order to achieve greater systemic impact and contribute to a more prosperous and inclusive Costa Rica, with strategic skill-building as a central element of development. Our Three-Year Vision Promote a model of sustainable economic growth based on professional and technical training and support for programs and projects in key economic areas such as water-resource management, renewable energies, and territorial development, in order to achieve a positive impact on levels of authentic competitivity and the rational use of natural resources. Background: During its first 15 years, CRUSA carried out annual financial and thematic planning in its four focus areas: Education, Environment, Science and Technology, and Strategic Capacity-Building, addressed through public calls for proposals. Projects approved for financing had an average duration of 12-18 months with one-year results and impact. At the end of 2011, facing a financial scenario more complex than in previous years, the Board of Directors made two important decisions to ensure the continuity of the Foundation’s impact: 1) To concentrate planning on one of the four thematic areas – Education – and address the other three thematic areas with Education as the transversal theme of all projects, and 2) to develop three-year budgets to increase projects’ scale and impact. As a result of these decisions, an Education-focused 20122014 Strategic Plan was developed1 including six projects prioritized by the Ministry of Public Education; a public Call for Proposals was carried out related to integrated water-resource 1 Strategic Education Plan 2012-2014 1 management with Education as a transversal theme2; and the Leadership for Competitivity Program (PLC 2013) was created to support capacity-building in critical economic sectors. The results of this thematic concentration and impact of the six Education projects, as well as progress on the seven conservation and sustainable water-use projects and the Leadership for Competitivity Program, are detailed in the 2014 Annual Report. National Context and International Cooperation Based on a contextual analysis by an external consultant regarding the tendencies and factors that affect the country’s competitivity, which resulted in the creation of the Leadership for Competitivity Program (PLC), as well as consultations with key international players, the CRUSA Foundation chose to focus its efforts on the following strategic issues: energy efficiency and renewable energies, integrated water resources management, territorial economic development and, as a transversal theme, capacity-building through a program of Master’s Degree scholarships and professional exchanges in science, technology, engineering and mathematics (STEM).3 The PLC was launched at the end of 2013 with an approved budget of $1.9 million for three years (2014-2016) to strengthen human capital in the aforementioned strategic areas. The United States Government served as a key financial and strategic partner for the project, both through its Embassy in Costa Rica and through the State Department’s Education USA and International Visitors Leadership Programs. Given the excellent results of the PLC, its objectives and budget were incorporated into the thematic and financial planning of the Programs Division, a process that culminated in the current 2015-2017 programming plan based on strategic capacity-building. To develop the current programming plan, the following elements were taken into consideration: a) High-priority sectors identified in the study cited above, b) The 2015-2018 National Development Plan, for all matters related to territorial economic development and the primary objective of achieving significant increases in the productivity of the primary agri-food chains through efficient water usage, reduction in energy used in processes, and human resource training, c) Thematic and financial priorities of other international donors aligned with national priorities. In January 2015, the CRUSA Foundation, aware of the overlap of thematic and financial priorities with other national and international donors, created a consortium including the United Nations Development Programme (UNDP), the World Bank (IFC), the Inter-American Development Bank (BID-FOMIN), Fundecooperación for Sustainable Development (Climate 2 Appendix A: Conservation and Sustainable Water Use Call for Proposals 2012-2014 3 Leadership for Competitivity Program and State of Science and Technology 2014 2 Change Adaptation Fund), and the German Society for International Cooperation (GIZ- GEF Funds). The purpose of the consortium is to maximize resources and the impact of collective actions on water use, energy and territorial economic development. This joint cooperation effort will focus on: Water Sector: Consolidation of integrated management of this valuable resource through interinstitutional coordination to address national challenges related to best practices for the management of Administrative Associations of Rural Aqueducts (ASADAS); capacity-building in public and private institutions related to the integrated management of water resources; and improving hydraulic infrastructure and land conservation. In the 2015-2017 period, CRUSA will add $1.85 million to the $1.5 million it donated in 2012-2014 to execute programs and activities in this area. Energy sector: Energy efficiency and renewable energies are a national priority, since these issues affect the country’s competitivity. The urgent need to define the energy matrix, train specialists, and support the creation of collaborative groups to design intelligent networks has led the CRUSA Foundation to invest $1.5 million in a grant program, professional exchanges, and efforts to bring experts to the country to increase national capacity in science and technology related to this sector. CRUSA will commit an additional $2.5 million in donations to critical programs and activities for the 2015-2017 triennial. Farming and livestock, tourism and rural economic development sector: Reduced food production because of changes in agricultural policy and climate conditions has heightened the urgency of increasing agricultural productivity and competitivity by improving sustainable landmanagement practices. The farming and livestock sector is the second-largest employer in the country, with 14.1% of the population active in practices such as agriculture, livestock and fishing,4 giving the sector enormous social importance and making it urgent to implement measures and actions that can maximize its activity. For the 2015-2017 triennial, CRUSA will commit approximately $1.25 million to support the national strategy “Tejiendo Desarrollo” (“Building Our Development”), which promotes agricultural competitivity by identifying comparative and competitive advantages of value chains in regions or zones identified as critical because of their poverty, climactic vulnerability and tourism value. CRUSA will focus its efforts on two regions – the Central Pacific and Southern Pacific – concentrating its funds on strengthening micro, small and medium businesses (MIPYMES) and reducing municipal bureaucracy for forming and formalizing such enterprises. Objective 1: Improve water management in productive activities and for human consumption, and strengthen the Information System for integrated water management. Objective 2: Promote a cleaner, more efficient energy matrix and strengthen the system of 4 3 Report of the Executive Secretariat for Sectorial Agricultural Planning, 2012, page 171 intelligent networks. Objective 3: Create local wealth by consolidating and strengthening small and medium agricultural and tourist businesses in selected territories by supporting productive chains. 2015-2017 Operational Framework We have identified as a critical priority the development of best practices for evaluation and future sustainability for all our projects. With this in mind, the CRUSA Foundation has fine-tuned its operational framework to facilitate channels for collaborative work with other national and international donors aligned with our programming priorities, as well as the organizations that execute projects that help us fulfill our goals. We seek to ensure that each actor adds value to each phase according to their areas of focus and scope of their skills, so that the final result can have the greatest possible impact. In its operational model, the CRUSA Foundation will be guided by the following principals: 1. Transparency: We will propose operational systems that ensure transparency, elevating projects’ quality and impact. 2. Efficiency: Financing will be delivered in a way that optimizes the yield of each donation. 3. Efficacy: The Foundation will focus on the final beneficiary, availing itself of the work of strategic and financial partners for project execution. The focus on the final beneficiary allows the Foundation to assess more accurately the impact of every dollar invested. 4. Sustainability: CRUSA’s strategy is the sustainability of its endowment, as well as its donations. Along with a clear investment strategy, CRUSA proposes to raise funds to allow for continuity and a broader impact of the projects to which CRUSA commits support. The strategic plan is summarized below in technical tables by focus area, with the corresponding budgets: 1. Integrated water management Objective: i) Improve water management in production and for human consumption. ii) Strengthen the Information System for Integrated Water Management. Total investment: $2.5 million Description of expected Three-year impact indicators: activities: Sustainable agriculture and low- 40 farmers will produce 4 Budget in a $220,000.00 impact livestock Treatment of sewage, greywater and waters from productive farms (biogardens, biodigestors) Pollution control in productive systems Rainwater harvesting for irrigation and consumption systems Consolidating information on sources and providers of aqueduct and drainage services Equipment and infrastructure for data gathering Pilot program to place solar panels in ASADAS in areas of relative underdevelopment and the implementation of hydraulic improvements in tubing, leak correction and training in panel maintenance Creation of ASADAS consortia to support a model of efficiency in community water management (FUNDESFINCA-CEDARENA) Support for Blue Flag program in communities, schools, and hydrological microbasins Support for White Flag program in ASADAS sustainable manner and will adopt sewage systems as well as land- $325,000.00 improvement and pollution-control systems $150,000.00 $175,000.00 9 stations to constitute hydro- $300,000.00 meteorological networks to provide more and better information about water resources $375,000.00 40 ASADAS reduce their electric bill by $410,898.88 80% 80 ASADAS incorporated $300,000.00 # Schools, communities and $75,000.00 microbasins with a Blue Flag rating # ASADAS with White Flag $75,000.00 $2,405,898.88 2. Renewable energies and energy efficiency Total investment: $1.7 million Objective: Promote a cleaner, more efficient energy matrix and strengthen the system of intelligent networks. 5 Description of expected activities: Contribute to the design of an Intelligent Networks System through advisors and internships (Energy cooperation network) Collaborate on the design of a Research Center for Intelligent Systems (CISI), through advisors and internships Sector-wide Digital Information System on energy matters Solar schools Three-year impact indicators: Budget 75 people trained in the design and $300,000.00 management of Intelligent Systems 90 people trained to support the $150,000.00 management of CISI research Design an Information System to $300,000.00 streamline energy processes 9 schools with solar panels $120,000.00 Pilot program of marine energy 70% of the pilot completed in order for production (ICE + Stanford) the ICE to determine marine energy potential Promote networking through 3 networks created to address critical public-private partnerships issues in a coordinated manner Maintain a Guarantee Fund to 24 MIPYMES from regions outside the promote the use of renewable Greater Metropolitan Area (GAM) energies in the tourism and agro- converted to renewable energies industrial sectors Sustainable building code 1 Code $130,000.00 $150,000.00 $400,000.00 $40,000.00 Impact study of distributed 1 pilot study replicable in 9 electric $120,000.00 generation in the management operators (financial-administrative) of electric distributors $1,710,000.00 3. Regional economic development Total investment: $1.2 million Objective: Create local wealth by consolidating and strengthening small and medium agricultural and tourist businesses in selected territories by supporting productive chains. Description of expected Three-year impact indicators: activities: Consolidate and strengthen small 30 MIPYMES and medium businesses to 6 Budget promote their linkage with consolidated investment and tourism services Strengthen community identity, including leadership and cultural aspects Organization for destination management, a public-private partnership Increase management capacity and create alliances between small businesses Maximize the growth and formalization of businesses through business administration advisors Simplify bureaucratic processes to improve efficiency in the management and use of natural resources Develop environmental norms for all municipal services: waste management and water supply Identify farming and livestock value chains and use of renewable energies in farming Programs designed and executed $50,000.00 # of alliances created $25,000.00 # of alliances created $25,000.00 36 MIPYMES $217,000.00 6 Municipalities $270,000.00 6 Municipalities $300,000.00 6 value chains $378,000.00 $1,265,000.00 4. Human Capital – STEM Master’s Grant Program Total investment: $1.1 million Objective: Strengthen capacity-building in key issues for the country. Description of expected activities: Postgraduate scholarships in Science, Technology, Engineering and Mathematics Undergraduate scholarships in Science, Technology, Engineering 7 Three-year impact indicators: Budget 17 people with postgraduate studies $750,000.00 10 undergraduate scholarships for $67,925.00 students from rural areas and Mathematics Other training activities Congresses and seminars $50,000.00 9 congresses and seminars $220,000.00 $1,087,925.00 Fundraising: Fundraising for 2015 will focus on: 1) Maintaining the Guanacaste Fund to obtain small community donations that serve as a counterpart for funds committed by CRUSA for the region of Guanacaste. For its management, the administration of the Guanacaste Fund has been transferred to the Guanacaste Fund Trust, according to an agreement between the Fund’s Administrative Council and the Administration of the CRUSA Foundation. And, 2) The presentation of proposals to multilateral organizations, international aid organizations, foundations and donor NGOs. This fundraising strategy has been very successful for the CRUSA Foundation, which led the programming team to incorporate a staff member who this year will focus on this effort. This year, Amigos of Costa Rica will continue to serve as the legal platform for the transference of donations to projects executed in Costa Rica by North American donors who wish to make a taxdeductible donation in the United States; the CRUSA Foundation, as an organization of public interest, will continue to receive donations that are tax-deductible in Costa Rica. Organizational Efficacy: Operative efficacy and good strategic planning are essential to the management of any organization. In a financial scenario that demands a reduction in donation costs and an increase in the impact of donations, the CRUSA Foundation has undertaken an operational reorganization based on collaborative work teams to capitalize on the skills of programming and financial staff. Our new organizational chart reflects this effort, which is conscious of cost reduction without affecting global results and has included the following changes: the fusion of the Executive Director and Program Director offices; the absorption of two departments, Communication and Fundraising, within the Programs division; and the creation of a functional position of Financial Coordinator ascribed to Programs and Financial Administration. In addition, to ensure the Foundation’s continuing relevance, and to allow it to monitor progress and evaluate the results and impact of the organization in a systematic and organized manner, a Programs Committee will 8 be created that, like the Finance Committee, will advise the Board of Directors and the Administration on matters related to program planning. Assembly Board of Directors Finance Committee Executive and Programming Delegate Assistant Programming Committee Administration, HR and Finances Financial Programming Coordinator Senior Programs Officer Senior Programs Officer Accounting IT Communication Fundraising Accounting support 9 Reception Messenger Office Steward Program Assistant 10