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Structure
and Funding of the CPAF
The
CPAF is a German charitable foundation
designed as a financing vehicle
for nature conservation in the three
core Caucasus countries.
In its simplest expression the CPAF
is an endowment trust fund. Contributions
to its endowment are invested, and
only the investment earnings are
spent on Caucasus nature conservation.
The goal is to ensure perpetual
financing for up to 50% of the protected
area operating costs. In this way,
environment ministers and environmentalists
can plan PA conservation projects
with a secure source of funding
in place.
Assuming net annual investment returns
of 6% or more, and inflation in
Euro terms averaging 2%, an endowment
fund of ¤ 50 million would generate
the necessary income: ¤ 50 million
times 4% inflation adjusted return
= ¤ 2 million.
The German government
(through the BMZ and KfW), WWF, Critical Ecosystem Partnership Fund and
Conservation International have
provided the CPAF with initial endowment
funding of about € 8 million,
and representatives from BMZ, KfW, WWF and Conservation International constitute
our current four-member board. The
CPAF is actively seeking additional
donors to increase its endowment
funding.
Knowing that not all donors can
or will want to give to its endowment,
the CPAF has also forseen two
alternative ways to make contributions.
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