The questions asked in this section of the application describe your organization’s financial history and current fiscal health. We need to ensure that all organizations to which we provide debt, equity, or grant finance have the ability and experience to efficiently utilize that capital. We ask different questions depending on if your organization is a for-profit enterprise or a non-profit community organization.
In this article, we highlight each of the questions we ask in this section of the full application, why we ask them, address any common concerns around each question and (where relevant) provide you with resources/examples to help answer the question.
There are multiple questions that applicants already answered in the Expression of Interest (EOI) stage. You will not be required to answer these again but you are encouraged to update your responses based on feedback that you received on your EOI. All of the questions from the EOI will be written in green below, in case you wish to review the guidance again.
If you have any further questions, you can add them below as a comment or submit them here, and our support team will try to address it.
Information For Questions Asked
Questions for Non-Profit Organizations
Questions for For-Profit Organizations
Questions for all organizations
Questions for Non-Profit Organizations
Q: Total budget in USD in 2020, 2021 and 2022
Why we ask this question:
An organization's operating budget allows us to understand how much money your organization has managed over the last three years. These data points allow us to gauge if an organization has the ability and experience to absorb a maximum sized grant.
How we define a "budget"? Budget denotes the total amount of money managed by your organization in the given year, converted into USD.
Why do we ask for the historical budget in USD? As an international program operating across different countries, we use USD as a benchmark currency to evaluate all financial plans. We understand that some countries are experiencing rapid devaluation of their currency against the USD. In this scenario, use the official exchange rate on January 1 of each of the years.
Q: Upload your organization’s 2020, 2021, 2022 budget.
Why we ask this question:
By uploading your organization's financial statements, we can verify that your totals reported are accurate and we can gain a deeper understanding of your organization's ability to track your finances accurately and transparently.
In what format should budgets be uploaded? We prefer financial statements in a spreadsheet format (.csv, .xls, etc.) but will accept .PDF files. Do not submit files in any other format.
What should my uploaded budget documents cover? Budgets must detail your entire organization's expenses. You can see an example document here.
Do my budgets need to be audited? Audited budgets are preferred, if available, but are not required at the Expression of Interest stage.
Q: Projected total budget in USD for 2023
Why we ask this question:
We ask for the project total budget to understand how much money you are planning to spend this year. This should not include the money you could be awarded through this grant opportunity.
What should we submit for our budget? For the current year, you can submit the total projected 2023 budget, as approved by your board.
Why do we ask for the budget in USD? As an international program operating across different countries, we use USD as a benchmark currency to evaluate all financial plans. We understand that some countries are experiencing rapid devaluation of their currency against the USD. In this scenario, use the official exchange rate on January 1, 2023.
Questions for For-Profit Organizations
Q: Revenues in USD in 2020, 2021, and 2022
Why we ask this question:
Seeing a company's revenues allows us to understand how much money your organization has generated in gross income over the last three years. These data points allow us to gauge if an organization has the ability and experience to absorb a loan.
How we define revenues? Revenues are the total amount of income generated by the sale of goods or services related to your company's primary operations in a given year, before deductions. Revenues are paid to the company by customers. Revenues do not include grants that paid for any operations. In some countries, revenues are referred to as "turnover."
Why do we ask for the revenues in USD? As an international program operating across different countries, we use USD as a benchmark currency to evaluate all financial plans. We understand that some countries are experiencing rapid devaluation of their currency against the USD. In this scenario, use the official exchange rate on January 1 of each of the years.
Q: Upload your organization's 2020, 2021, 2022 income statement and balance sheet.
Why we ask this question:
By uploading your organization's financial statements we can verify that your totals reported are accurate and we can gain a deeper understanding of your organization ability to track your finances clearly.
What formats can I upload my financial statements? We prefer financial statements in a spreadsheet format (.csv, .xls, etc.) but will accept .PDF files. Do not submit files in any other format.
What should my uploaded financial statements include? Please ensure that you have uploaded all financial information necessary to assess the health of your business. Your upload should include a profit & loss / income statement and a balance sheet.
Do my financial statements need to be audited? Audited financial statements are preferred, if available, but are not required at this stage.
For an example of an excellent income statement and balance sheet, explore this example.
Q: Projected revenues in USD for 2023
Why we ask this question:
We ask for the project revenues to understand how much gross income you are planning to generate this year. This should not include the money you could be awarded through this grant opportunity.
What should we submit as our projected revenue: For the current year, you can submit the number on your annual projections, as approved by your leadership team.
Why do we ask for the budget in USD: As an international program operating across different countries, we use USD as a benchmark currency to evaluate all financial plans. We understand that some countries are experiencing rapid devaluation of their currency against the USD. In this scenario, use the official exchange rate on January 1, 2023.
Q: Please upload your organization’s bank statements from the past 6-12 months.
Why we ask this question:
Requesting bank statements from the past 6-12 months allows us to evaluate the financial health and performance of your company, as well as to identify any potential risks or issues that may need to be addressed before funding can be provided.
What we are looking for"?
As part of the application process for TerraFund for AFR100, we require organizations to submit their bank statements from the past 6-12 months. This information is kept confidential and is only used for the purpose of evaluating the financial health and performance of the organization.
We understand that financial documents can be sensitive, and we take the security and privacy of our partners' information seriously. We have implemented secure document management systems to ensure that all financial information is kept confidential and is only accessible by authorized personnel.
We encourage organizations to ensure that their bank statements are up-to-date and accurately reflect their financial activities. By providing this information, organizations can demonstrate their financial stability and accountability, which can increase their chances of receiving funding from TerraFund for AFR100. You can submit information pertaining to multiple bank accounts for this question, as long as these accounts are registered to your organization.
Questions for all organizations
Q: In the past 36 months, who provided your funding, what type of funding did you receive, and how much funding did you receive?*
Why we ask this question:
We ask project developers to submit information about their past funders, including their funding sources, the types of funding received, and the amounts received, so we can better evaluate the capacity of the organization to manage and effectively utilize TerraFund finance. This information also allows us to identify potential conflicts of interest, as well as to understand the broader funding context for restoration projects in the region.
What are we looking for?
As part of the application process for TerraFund, we require organizations to provide information on their sources of finance for the past 36 months. This information is kept confidential and is only used for the purpose of evaluating the financial capacity and history of the organization.
Organizations are expected to provide accurate and up-to-date information on the amount of funding that each of their financial partners provided to them and the type of funding that they received. This information helps us to evaluate the capacity of the organization to manage and effectively utilize the funding provided by this funding program, as well as help us identify potential conflicts of interest.
Definitions for each of these types of funding can be found below.
- Grant from Foundation/Donor: This is a financial donation given to an organization by a foundation, non-profit, corporation, or other non-government funder.
- Public Grant from Government: This is a financial donation given to an organization by a government agency or institution.
- Loan/Credit Finance from Private Bank or Investor: This is an agreement between parties involving a financial contract in which the lender provides the borrower an amount of capital that must be repaid, usually at a specified interest rate.
- Equity from Private Investor: Equity is an ownership interest in business and is a way of raising capital by selling shares to investors. Equity finance gives shareholders a stake in the company's long-term growth and performance.
- Product Offtake Contract: This type of contract guarantees the purchase of future goods between the seller of a product and a buyer (the ‘offtaker’).
- Carbon Credit Contract: This is a contract between a carbon credit seller and a buyer to purchase verified carbon credits from a tree-growing project that sequesters carbon dioxide.
- Public/Private Payments for Ecosystem Services: Payments for ecosystem services (PES) are financial incentives offered to farmers or landowners for managing their land to provide ecological services. For example, this can include payments from governments or private sector funders for watershed control and erosion prevention.
- Other: This is any additional source of financing not defined in the above categories.
Q: How did you raise the funding indicated in the previous question?*
Why we ask this question:
We would like more details about the fundraising strategy, donor relationships, and how this impacted your financial sustainability.
What are we looking for?
We expect you to provide a clear and transparent explanation of how your organization raised each of the funding sources indicated in the previous question. This could include information about fundraising events, grant applications, crowdfunding campaigns, individual donations, and corporate sponsorships. The response should provide sufficient detail to allow the reviewers of your application to assess your organization's ability to effectively raise funds and manage finances. This information remains strictly confidential.
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