Terms of Reference - Endowment Fund Feasibility, Design & Setup Consultancy

UBONGO International
REQUEST FOR PROPOSALS
Terms of Reference
Endowment Fund Feasibility, Design & Setup Consultancy
1. Background
Ubongo International (“UI”) is a non-profit organization that creates fun, localized, and multi-platform educational media that reaches millions of families through accessible technologies. UI's programs significantly improve school readiness and learning outcomes for kids and also promote social and behavioral change for kids, caregivers, and educators.
Ubongo International is seeking a highly qualified consultant or advisory firm to assess the feasibility of establishing an endowment fund, design the optimal fund structure, and provide actionable guidance on setup, governance, and initial capitalisation strategy.
2. Objectives
The consultancy will pursue the following objectives:
Assess the feasibility of establishing an endowment fund tailored to Ubongo International’s organisational stage, legal context, and strategic ambitions
Evaluate and recommend the optimal endowment structure, legal vehicle, and domicile
Design the governance framework, that aligns with Ubongo’s investment policy, and will guide the funds
implementation / funding modalities mostly located in the African continent.
Develop a realistic capitalisation pathway, including seed funding strategy, donor cultivation, and target endowment size
Identify and evaluate potential fund managers, custodians, and fiduciary partners
Provide a detailed implementation roadmap with prioritised actions, timelines, and cost estimates
Build internal capacity at Ubongo to manage and steward the endowment over time
3. Scope of Work
Phase 1: Organisational & Financial Readiness Assessment (Weeks 1–2)
Review Ubongo's consolidated financial statements, revenue trends, reserves policy, and existing investment holdings
Assess Ubongo International’s current legal structure, jurisdiction considerations, and regulatory environment
Benchmark Ubongo International’s financial health against comparable nonprofits that have established endowments
Produce a readiness assessment identifying strengths, gaps, and prerequisites for endowment establishment
Phase 2: Endowment Models & Structural Options Analysis (Weeks 2–4)
Research and evaluate endowment models: standalone foundation, donor-advised fund, board-designated endowment, hybrid structures
Analyse domicile options considering legal requirements, tax efficiency, and donor attractiveness
Assess investment policy options: asset allocation frameworks, ESG mandates, and liquidity requirements
Model different spending rule scenarios and long-term endowment growth impact
Present a structured options analysis with clear trade-offs, recommendations, and rationale
Phase 3: Governance & Investment Policy Design (Weeks 4–6)
Design the endowment's proposed governance structure: board composition, investment committee charter, and fiduciary responsibilities
Draft an Investment Policy Statement (IPS) covering allocation targets, permissible investments, rebalancing rules, and other considerations
Develop a Spending Policy defining the annual distribution formula, approval process, and conditions for principal access
Design conflict-of-interest, transparency, and accountability mechanisms aligned with international best practices
Phase 4: Capitalisation Strategy & Donor Engagement Plan (Weeks 6)
Define a target endowment size based on Ubongo’s grantees operational needs and growth ambitions
Develop a phased capitalisation strategy: seed capital, challenge match campaigns, planned giving, and institutional funder engagement
Identify and profile 20–30 prospective lead donors (foundations, HNWI, DFIs) for endowment-building conversations
Develop a compelling case for support: narrative, impact framing, and donor value proposition
Advise on named fund opportunities, donor recognition structures, and legacy giving programme design
Phase 5: Setup Roadmap, Fund Manager Selection & Implementation Support (Weeks 7–8)
Develop a step-by-step implementation roadmap covering legal setup, regulatory filings, and fund manager selection
Produce a selection framework for screening and appointing a fund manager and custodian bank
Evaluate at least 3 candidate fund managers and provide a comparative assessment and recommendation
Estimate all setup costs, ongoing management fees, and administrative costs
Conduct a capacity-building workshop for Ubongo's board and finance team on endowment stewardship and reporting
4. Deliverables
Deliverable 1: Inception Report — refined scope, methodology, and work schedule (Week 2)
Deliverable 2: Organisational & Financial Readiness Assessment Report (Week 3)
Deliverable 3: Endowment Structural Options Analysis with recommendations (Week 4)
Deliverable 4: Draft Investment Policy Statement (IPS) and Spending Policy (Week 5)
Deliverable 5: Endowment Governance Framework — committee charter and board policies (Week 7)
Deliverable 6: Capitalisation Strategy & Case for Support (Week 7)
Deliverable 7: Fund Manager Selection Framework and Comparative Assessment (Week 7)
Deliverable 8: Implementation Roadmap with legal setup checklist and cost estimates (Week 8)

Employment type
Contractor

Work arrangement
No