USAID’s Development Innovation Ventures: A life changing opportunity for NGOs

USAID’s Development Innovation Ventures: A life changing opportunity for NGOs
Call for Concept Notes
Deadline: 15 April 2014

The United States Agency for International Development’s (USAID) Development Innovation Ventures (DIV) is a grant program open to NGOs around the world to apply and get support for project ideas that provide breakthrough solutions to development challenges around the world.

The United States Agency for International Development (USAID) launched the Development Innovation Ventures (DIV) to provide funding of up to $100,000 for new project ideas and again $1 million to $15 million for scaling up of innovative ideas for several years. Interestingly, USAID has opened this opportunity to NGOs from all countries around the world. Even if you are a small NGO based in a developing country or a huge organization leading several projects across different parts of the world, you are eligible to apply and win grants under DIV.

DIV is accepting proposals for projects which offer innovative solutions to problems related to development. As this opportunity seeks to address different kinds of development challenges, you can submit proposals for any sector, whether it is livelihood development, agriculture, climate change, environment, democracy, human rights, peace and conflict etc. The problems or challenges existing in these sectors can be addressed innovatively by NGOs in their project areas and USAID would be more than willing to understand them, review your project ideas and fund them right from the start up. If your organization is already implementing innovative solutions to address development problems, then you can share them in your proposal and if USAID approves it, you can scale them to other project areas.

Take your NGO to the next level

Before we can explain you how to apply for this funding opportunity, it is important to understand why NGOs should apply for it.

This is a unique grant opportunity because NGOs from all across the world are invited to apply for it. Secondly, you can submit your project ideas in any sector or area of interest. Thirdly, DIV funds new ideas or start-ups (not many donors would do this). Fourthly, there is scope for receiving additional funding from USAID; if your innovative project receives initial success, then you have better chances of getting more funds to replicate the same project in other areas. Lastly, and more importantly, USAID believes that in the coming future, funding for NGOs would be limited and thereby, it is necessary to innovate and implement cost-effective solutions to address development challenges.


How USAID’s Development Innovation Ventures funding works?

Before you can think of applying for funding from USAID’s Development Innovation Ventures (DIV), you need to understand a few finer details. This is because unlike other calls for proposals, this grant has certain unique characteristics evolved from experience and new trends in the development sector.

DIV has a strong focus on ‘innovation’ and ‘cost-effectiveness.’ This means that the project proposal you are going to submit to USAID under DIV has to provide sufficient information that the idea is unique and innovative and that it ensures that costs in project implementation are saved. The costs attached to the project should be less than what is being currently practiced.

The very initial funding from USAID will depend upon how innovative and cost-effective your project idea is. USAID says, “These ideas do not have to be technological solutions, but also new business models, new processes, or even novel combinations of tried and true techniques. We look for the solutions potential to scale big, to tens of millions of beneficiaries within ten years.” Let’s not forget that DIV is open to ideas across all sectors of development.

USAID undertakes rigorous testing of your project idea including its cost-effectiveness by comparing to the current projects.  If your project gets qualified, then you are eligible to get the funds. There are three stages of funding:

STAGE ONE is for projects in the proof of concept phase: DIV will grant these projects up to $100,000 dollars over one year so that grantees can refine prototypes and gather the evidence they need to pull in more investment and grow.

STAGE TWO is for larger projects, typically to expand across a country. DIV will grant Stage Two projects up to $1 million.  In exchange, Stage Two projects will build in rigorous testing to prove if the project is viable at its larger size.

STAGE THREE is for much larger projects.  For grants of up to $15 million over several years, solutions that have already proven to work at a large scale will be expanded much further, and often into multiple countries.

How to apply for the USAID’s Development Innovation Ventures funding?

The USAID’s Development Innovation Ventures (DIV) has two stages of its application process. All applicants wishing to apply for funding from DIV have to initially submit a Letter of Interest (LOI). The LOI has to be submitted in the prescribed format only.

In the LOI, you need to submit information related to “the purpose of the project, summarize the project’s goals, and include financial information for the project among other criteria in the LOI.”

The submitted LOI will undergo review and approval process. If your LOI is selected, then your organization will be invited to submit a full application.

USAID's DIV Letter of Interest
Letter of Interest Form for USAID’s Development Innovation Ventures.
The Full Application form will be provided to invited applicants with submission instructions attached.  The Full Application form requests additional and more in-depth information than the LOI.




For more information, visit this link.