Q1. What is SCCF?
SCCF is a foundation registered in Jersey on 15 February 2021 with registration number FD403. A Jersey foundation is an incorporated vehicle, with its own legal personality (i.e. it holds its own assets and can sue and be sued in its own name). Jersey foundations do not have shareholders, rather their assets are held for the benefit of specific objects or purposes. SCCF is a Foundation established with charitable purposes, and its only named beneficiary is UN-Habitat.
Q2. What is SCCF’s overall aim?
To build a $1bn perpetual endowment fund by 2028, through donations and investments, to both remedy the current funding shortfall and to provide the basis for ongoing funding requirements and capital preservation at UN-Habitat. This perpetual financial support will allow UN- Habitat to meet the objectives of its rolling Strategic Plan.
Q3. What does SCCF do?
SCCF is a not for profit Foundation, which sources donations from Governments, Corporations, high net worth individuals etc and invests these through professional Fund Management Companies to finance an endowment fund, the prime beneficiary of which is UN-Habitat. SCCF will also provide fully funded scholarships and bursaries for academically qualified students to undertake a one year full time Master of Science degree in Sustainability studies at University College London (UCL) followed by a fully funded one year placement with UN-Habitat. SCCF and UCL’s Barlett Development Unit signed a LOI in January 2024.
Q4. How is SCCF funded?
SCCF will receive 0.5% of the annual endowment fund yields for its operating budget.
Q5. Who are beneficiaries of SCCF funding?
UN-Habitat receives the bulk of the funding. Prospective students can apply for a bursary from SCCF for urban regeneration related Masters degree studies.
Q6. Why should I donate to SCCF?
To contribute towards UN-Habitat’s focus on Sustainable Development Goal 11, “Sustainable Cities and Communities”, as one of the 17 Goals adopted by all United Nations Member States in 2015, to “End Poverty & Protect The Planet by 2030”.
Q7. Why is UN-Habitat not funded by UN Members?
UN-Habitat is mainly supported financially by voluntary contributions from government and inter-government donors. Other parties, such as local authorities, the private sector, and other United Nations bodies and multilateral organisations, provide funding for specific programmes. In 2023, UN-Habitat’s total non-earmarked funding was $4.4m.
Q8. How much of my donation goes towards UN-Habitat projects?
Our target is to build a $1bn endowment fund by 2028, with a yield sudicient to cover costs and at least a 2.5% distribution of annual value to UN-Habitat in perpetuity. Expectations are that management fees and other expenditure will be no more than 3.7%, meaning that the Foundation will benefit from at least 96.3% of the donated funds. This figure compares very favourably with the average large global charity.
Q9. How can I be sure that my donation is used by UN-Habitat to improve the world’s poorer communities?
UN-Habitat has committed to use funds from SCCF to promote the development of socially and environmentally sustainable human settlements and the achievement of adequate shelter for all, in Least Developed Countries and Small Island Developing States. UN-Habitat will also use these funds for their work on emergency disasters.
Q10. Can I work for SCCF?
SCCF will be recruiting Ambassadors (likely to be high-profile individuals that will represent SCCF externally) and Advisors (e.g. experts on investment selection/management) who will advise the Council internally. These are unpaid positions.
Q11. How does SCCF coordinate its work with the UN and other agencies, so there is no duplication?
SCCF and UN-Habitat have a weekly “Heartbeat” call to ensure alignment and progress in collaborating and working together towards the implementation of the United Nations system-wide strategy on sustainable urban development, including the New Urban Agenda and Sustainable Development Goal 11. On 30 November 2023, SCCF and UNHabitat entered into a ten-year Contribution Agreement which oversees the relationship between the parties.
Q12. What are the benefits from donating to SCCF?
To contribute to UN-Habitat’s remit to drive improvements in cities in the Least Developed Countries (LDCs) and Small Island Developing States (SIDS), which currently lack the infrastructure and funding to support population growth and rapidly growing migration, resulting in 1 billion slum dwellers, the majority of whom have to survive on less than USD5/day.
Q13. Who runs SCCF?
The “SCCF Foundation Council’ is the controlling body responsible for managing the assets of SCCF and carrying out its objects and purpose, i.e., the advancement of sustainable urbanization. Council members must act honestly and in good faith with a view to the Foundation’s best interests, and exercise the care, diligence, and skill that reasonably prudent persons would exercise in comparable circumstances. Current SCCF Council members are Fiduchi Trustees Limited (Fiduchi), Grant Rogan and Catherine Derrien- Rogan, of Blenheim Capital Partners Limited. Under the terms of SCCF’s Contribution Agreement with UN-Habitat, the Executive Director of UN Habitat may appoint five Member States to a nine-person Advisory Board who will provide further oversight and good governance.
Q14. Which countries and communities does SCCF and UN-Habitat support?
UN-Habitat will use funds raised by SCCF in the Least Developed Countries (LDCs) and Small Island Developing States (SIDS). These are defined by the UN and currently comprise 46 LDCs and 58 SIDS (7 of which are also LDCs). The lists are reviewed every 3 years by the UN Committee for Development Policy (CDP).
Q15. Is SCCF a registered charity?
SCCF itself is a not-for-profit charitable foundation but is not a registered charity.
Q16. Can I choose which country or project gets my donation?
UN-Habitat is mainly supported financially by voluntary contributions from governments and inter-governmental donors. Other partners, such as local authorities, the private sector, and other United Nations bodies and multilateral organizations, provide funding for specific programmes in specified countries and projects.
However there are also substantial under-funded and un-funded parts of UN-Habitat’s mandate towards the implementation of the United Nations system-wide strategy on sustainable urban development, which SCCF’s semi-annual funding contribution to UN-Habitat will help remedy. The UN-Habitat Executive Director (ED) will decide where this funding should be best used based upon recommendations and approval of UNHabitat’s Executive Board. It therefore will not be possible to specify where your donation should be used.
Q17. How can I make a donation to SCCF?
Please contact either Grant Rogan, grant.rogan@shs- foundation.org, +44-7785- 303163; or Terry Northcott, Director of the Qualified Member of the Governing Council, terry.northcott@fiduchi.com, +44-1534-755155.
Q18. Will my donation be tax deductible?
This varies by country. For example in the USA, donations to 501(c)(3) nonprofits are tax deductible. This means that when you make a contribution to an organization that has been designated as a 501(c)(3) by the IRS and you have not received anything in return for your gift, you are eligible for a deduction when you file your taxes. In the UK, Limited Companies can claim tax relief by deducting the value of donations from total business profits before tax.
Q19. How will my personal information be protected?
To protect your personal information, SCCF complies with the Data Protection (Jersey) Law 2018 and the UK Data Protection Act 2018 as appropriate, together with all implementing laws and any other applicable data protection, privacy laws or privacy regulations in the relevant jurisdictions, including the EU General Data Protection Regulation.
Q20. How does my country apply for funding?
Representations should be made to the Odice of the UN- Habitat Executive Director (ED), who will decide where funding from SCCF should be best used.
Q21. How can I be sure that donations to SCCF are ethically invested?
SCCF’s Fund Manager Partners are signatories to the UN Principles for Responsible Investment (PRI). This is an organisation dedicated to promoting environmental and social responsibility among the world’s investors. They are also signed up as Members to the 10 Principles of UN Global Compact.
Q22. How can I be sure that donations to SCCF are from legitimate sources?
The Fiduchi Group, who are SCCF Partners and the Qualified Member on the SCCF Council, is subject to regulatory oversight in respect of anti-money laundering and countering the financing of terrorism and is mandated to review all donations under this framework. In addition, all donors to SCCF must be members of the UN Global Compact.
Q23. How can I be sure that SCCF’s endowment fund will deliver at least the 2.5% annual yield for UN-Habitat?
The performance of endowment funds is subject to risks like rising rates, slowing economic growth and geopolitical uncertainty. SCCF’s Fund Manager Partners have undertaken Monte Carlo simulations on the proposed asset mix and model over a 20- year horizon and calculate that there is an 81.67% chance of hitting the 2.5% target return. Such a return protects the inflation-adjusted spending rate of the portfolio and covers administration and management fees.
Q24. How can I be confident that my donation to SCCF will be used to fund UN-Habitat?
By law the SCCF Council can only apply the assets of the Foundation in a manner that will benefit the stated object of the Foundation. “Managing an endowment fund in perpetuity for the benefit of UN-Habitat so as to assist UN- Habitat in its mission to promote transformative change in cities and human settlements” is the main object of the Foundation.
Q25. Is SCCF currently certified?
SCCF will within two years be ISO certified and all reporting will comply with GRI Standards as required under the Contribution Agreement.
Q26. Please describe the SCCF fees use?
SCCF fees as stated will be a one-time charge of 3.7% of funds received from Donor Investors. The monies used to cap its fund-raising requirements and early-stage Foundation expenditure and administration as well as an early-stage donation by SCCF to UNH.
Q27. Have the SCCF fees been disclosed and agreed to by UN-Habitat and its Executive Board?
Yes, the proposed fees and their use have been disclosed and agreed to by UN-Habitat and its’ Executive Board.
Q28. What commitment is sought from Donors?
Investor Donors will commit in principle to a ten-year investment through the Foundation. Projected annual yields are currently 6% per annum post investment manager fees and adjusted for inflation.
Q29. How may Donor Investors financially support SCCF?
Investor Donors may financially support SCCF in one of three ways:
- The first being a traditional donation (a substantial one time = ‘Fire & Forget’) where the Donor has no further involvement or direct economic benefit arising from the funds invested save recognition of the donation and subsequent annual returns as further ODA contributions by the Donor Investor. Of the forecasted 6% yield, 5.5% will be donated by SCCF to UNH for the purposes as mentioned above with 0.5% remaining with SCCF to finance its direct costs as well as its creation of an educational outreach programme in partnership with University College London (UCL) described further below.
- The second way in which a Donor Investor may participate is to donate a substantial one-time sum for investment. The Donor Investor will receive at maturity of the fund (10 years) the then value of its principal donation. The annual yields generated over the term of investment being used in a similar manner as per (1) above.
- The third way for a Donor Investor to participate is along the lines of (2) above however the Donor Investor shall receive by way of a second priority 3% of the annual yield (ie 50%) with the balance (3%) being applied 2,5% to UNH (as a first priority) and 0.5% retained by SCCF to be applied and used as described previously.
Individual acknowledgment will of course be given as well as a statement of each Donor Investor’s portion of the full 2.5% as its contribution in support of UNH for its unfunded and underfunded mandates as a whole including sustainable and affordable housing in Lesser Developed and Island States countries.
For UN Member States, such donations will be eligible for acknowledgement as Overseas Development Aid (ODA) contributions annually. An indirect way to use a financial instrument to support limited ODA budgets. For Corporations there may be tax benefits for their Donor Investments in their country of residence.
PO Box 437, Kensington Chambers, 46/50 Kensington Place, St Helier, Jersey JE4 0ZE.
+44 1534 755155 www.shs-foundation.org
The Sustainable Cities and Communities Foundation is registered with the Jersey Financial Services Commission with number FD403. Fiduchi Limited is regulated by the Jersey Financial Services Commission. Full legal, regulatory and data notices are published on www.fiduchi.com.
