Types & Amount of Available Funding

Funding Model: Eligibility for a loan or a grant depends on the type of organization. For-profit organizations can only apply for loans, and non-profit organizations can apply for grants.

Non-Profit Model For-Profit Model

Grant finance for non-profits/community-based organizations: Through One Tree Planted, grants are disbursed in several tranches, starting with the signing of the agreement and then following reports.

Low-interest loans for for-profit organizations: Through Realize Impact, low-interest loans are issued in tranches, with term lengths of one to five years.

How much funding is available in total?

• We have committed to funding a minimum of 85 projects, with each project receiving a minimum of $50,000 USD in funding. Projects and enterprises can apply for a maximum of $500,000 USD. We anticipate that some of our partners may receive more funding than others, depending on the scope and scale of their proposed projects.
• We believe that this funding range is sufficient to support a wide range of innovative and impactful projects that align with our mission and goals. We are committed to making our funding process as transparent and fair as possible.

How do I know if my organization is a for-profit or a non-profit?

• Your organization's status is usually indicated on your official registration documents. If your organization does not aim to turn a profit and is tax-exempt, you are a "non-profit organization." If your organization does aim to make profit and sells goods or services, you are a "for-profit organization."
• Cooperatives can be either for-profit or non-profit. Check your official registration to determine your status.
• We believe that this funding range is sufficient to support a wide range of innovative and impactful projects that align with our mission and goals. We are committed to making our funding process as transparent and fair as possible.

How much funding should I apply for?

• Organizations should not apply for more than their total budget (non-profit organizations) or total revenues (for-profit organizations) from 2020, 2021, and 2022. Applying for more funding than an organization has managed in past years signals to reviewers that your organization's ambition and traction do not match.
• The proposed project budget should reflect the total costs of implementing the project and should include monitoring and evaluation expenses. If your organization is invited to submit a full application, you will have to fill out and submit a detailed budget, using a standard template. Note that TerraFund caps all indirect and administrative costs at 20% of the total budget.
• Even if you apply for an appropriate amount of funding, the TerraFund for AFR100 Landscapes team may ask you to decrease your budget during the negotiation process in order to more accurately reflect your proposed scope of work.

Who is providing funding for this initiative?

• Our initiative has multiple funders who are committed to supporting our mission. These funders include the Bezos Earth Fund and several other organizations and individuals who share our vision. We are grateful for their support, which allows us to carry out our work and achieve our goals.

• We value our relationships with all of our funders and work closely with them to ensure that their contributions are used effectively and efficiently. We are committed to transparency and accountability in our financial operations and regularly provide updates to our funders and stakeholders.

How do we provide grants and loans to organizations?

• One Tree Planted issues grants to non-profit organizations and Realize Impact issues debt and equity to for-profit organizations. All funding decisions are made collectively by the consortium of partners, led by World Resources Institute.

• We are committed to using a range of financing arrangements to support our grant and loan programs. We use results-based finance to ensure that funding is disbursed as the project evolves. We believe that this approach can be an effective way to encourage positive outcomes and promote accountability among our partners.

• We issue TerraFund grants and loans in tranches. Through this system, we provide funding in stages, with each tranche contingent on the achievement of specific milestones or targets, including TerraMatch project reports.

• This approach can help to ensure that funding is used effectively and efficiently and allows us to provide additional support and guidance to our partners as they work to achieve their goals.

Why are for-profit organizations only eligible for loans?

• Through our work with the WRI's Land Accelerator, we have worked with hundreds of entrepreneurs that are restoring degraded land. Many have accessed grant finance from friends, their family, crowdfunding, or small grants, but they can only raise so much until the demands of their business outgrow what is available.
• When they first try to access debt finance from local banks or impact investors, interest rates or the demand for advanced financial literacy are too high. This makes it hard for restoration entrepreneurs to hire more staff, build factories, or expand their networks of farmers. As they improve their financial fitness, some receive additional grants to improve their work.
• TerraFund for AFR100 works directly with entrepreneurs to help them ready their businesses for the types of private investment, like debt and equity, that will help them grow in the long run. We issue low-interest loans and are flexible with repayment terms to build up the habit of repayment.