Background and context
Launched in 2016 by the United Nations Children’s Fund (UNICEF) and the World Bank Group, the Early Childhood Development Action Network (ECDAN) is a global platform to catalyze collective action so that so that every young child is safe, well-nourished, healthy, happy, and learning. ECDANs strives to bring together hundreds of members of the early childhood development (ECD) community as well as stakeholders in other sectors to advocate for the needs of young children and their caregivers to be centered in policy and implementation discussions. Stakeholders are connected across regions and sectors to share promising practices, tools, and other resources that benefit the youngest children, creating a global community that learns and shares together. ECDAN also encourages stakeholders to collaborate and undertake joint initiatives, maximizing the impact of limited resources by connecting and aligning.
In 2020, ECDAN launched its first strategic plan, which included intentions to transition to a new governance structure and a new hosting entity. ECDAN is currently hosted by PATH who handles all financial transactions securely and legally on behalf of ECDAN. The hosting institution has three primary roles and responsibilities vis-à-vis ECDAN: financial, human resources, and operational services. The operational components include procurement, contracting, IT support, travel, and more. To support these services and as ECDAN’s fiscal sponsor, PATH collects overhead on the funds ECDAN receives and charges program support as appropriate.
ECDAN’s Secretariat currently has 7 full-time staff and several consultants that are based in the United States, Kenya, Senegal, and Bangladesh. Three PATH staff support ECDAN part-time.
PATH is seeking a consultant to evaluate ECDAN’s potential as an independent non-profit organization. ECDAN’s Executive Leadership Council (ELC) would like to prepare for ECDAN’s sustainability and believe that independent legal registration may be an important component of long-term success. ECDAN’s leadership requested that the Secretariat undertake an analysis to examine different options for legal registration, including the possibility of becoming a 501(c)3 in the United States but not limited to this geography or legal status, and including other options for registration in Europe or Kenya. The analysis should examine multiple elements beyond just the financial cost of doing business in each scenario. The legal implications, strategic leverage, and staffing required should also be outlined for comparison. ECDAN would like the analysis to compare these different options against one another and against ECDAN’s current situation as an entity hosted by PATH, outlining the realities of each option. In particular, ECDAN would like to have an idea of the real costs and likely complications of setting up and maintaining each option, including estimating the amount of funding that would be required to ensure running a successful non-profit entity.
Timeline
The consultancy is expected to start in October 2023 and take approximately two months to complete. The final report is expected to be delivered by mid-December.
Specific activities
Elements of the consultancy will include but are not limited to:
Describe the process of independent legal registration options, including registering a 501(c)3 organization incorporated in Washington, DC, and other legal statuses in Europe and Kenya
Quantify the cost and process of initial registration, including the length of time it takes to register, in each scenario
Describe the costs of creating operational, financial and IT systems to run a successful nonprofit in each scenario, considering the following:
The current contract and benefits package offered to the 8 full-time ECDAN staff who are PATH employees in the United States and in Kenya
Annual expenditure of $2-$3 million and growing, and costs of an annual external audit
Legal and contracting needs, financial management and reporting to 10+ foundation donors which require regular (annual, bi-annual, or quarterly) reports and 20+ outgoing agreements per year
Describe and cost the policies that ECDAN would need to develop to be independent related to human resources, financial management, travel, IT, governance (by-laws), and more, and how they differ per each location
Calculate the cost of renting office space or meeting space, noting any rules that apply for legal entities to have a physical address
Fully outline the services PATH provides and real costs ECDAN has paid within PATH’s cost structure
Describe and cost any other operational, administrative, or financial needs to sustain a successful nonprofit not listed above
Create a summary report which makes explicit the costs and benefits of the different options and how they compare to PATH’s current cost structure Make recommendation on the cost effectiveness of ECDAN becoming an independent nonprofit based on cost effectiveness and sustainability
Create a summary report of all costs to transition ECDAN from PATH and sustain ECDAN’s operations during the first two years as an independent organization
Start up
Timeframe: October (Report to be completed by 10/15)
Inception meeting with Secretariat leadership
Follow up meetings with ELC leadership, PATH staff to clarify vision and current situation
Review of key documents to further inform ECDAN’s current needs and future vision
Inception report outlining the steps and confirming timelines
Development
Timeframe: October-November (Matrix to be completed by 11/18)
Matrix framework of options vs. elements to consider
Meeting with Secretariat leadership for feedback on draft matrix
Notes and resource links from research and interviews
Completed matrix with summarized findings
Completion
Timeframe: December (1st draft to be completed by 12/3, final by 12/17)
Draft written report with pros and cons of the different options and an ultimate recommendation
Meeting with Secretariat leadership for feedback on draft report
Finalized report
Qualifications
Minimum bachelor’s degree in business, finance, or similar/proven work experience
At least 7 years’ experience in non-profit business, administration, finance, or operations
Strong project management and analytical skills
Excellent writing and communication skills
Proven track record of completing similar work
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