You’ve probably heard the phrase pro bono, but have you heard of low bono?
In a low bono arrangement a company is not making a donation but a below-market rate amount of money on a product or a service. Often a low bono arrangement may be enough to ensure sustainability, rather than it being a charitable activity.
It’s a fairly new model of engaging the private sector — or at least a new term — and a practice the Global Fund to Fight AIDS, Tuberculosis and Malaria is employing in an effort to tackle some of the challenges the organization is working to address.
It is also one example of the innovative finance, models and approaches discussed Tuesday at the Devex Impact event at the Global Fund’s secretariat in Geneva, Switzerland.
The Global Fund recently created an innovation hub to bring together private sector partners from a number of industries to help tackle challenges around supply chains, financial and risk management, as well as program quality. Companies across a wide range of industries are partnering to design solutions to Global Fund challenges.
As a part of that process, SAP has designed grant management dashboards that provide greater visibility into programmatic, financial and management performance indicators. SAP sells the product at a dramatic discount, but can still cover its costs.
Read more at Devex