Financing

The total amount of financing required for establishing the BMI is estimated at US$15 million. Several categories of funding are envisaged for the support of the Institute's establishment and operations. These include: (1) international support (2) foundation support (3) donations from individuals and companies (4) endowment and (5) designated giving.

INTERNATIONAL SUPPORT

BMI will compete for capacity building grants available to other independent higher education institutions. This support will go towards infrastructure and program development. The possible sources of grant financing are the: World Bank, United Nations Development Program (UNDP), European Union (EU), Canadian International Development Agency (CIDA), Development Fund for International Development (DFID), Commonwealth Secretariat, United States Agency for International Development (USAID), International Development Research Center (IDRC), JICA, NORAD, NEPAD, African Union (AU), and the British Council.

FOUNDATION SUPPORT

Grant proposals to support BMI programs will be made to a wide variety of funding agencies and foundations including the; Rockefeller Foundation, Ford Foundation, MacArthur Foundation, Kellogg Foundation, Rotary Foundation, Carnegie Foundation, American Express Foundation, Bill Gates Foundation, Mellon Foundation, Spencer Foundation, and the Africa Capacity Building Foundation (ACBF).

DONATIONS

The Founder will lead a fundraising crusade to mobilize donations for infrastructure development of BMI. The Founder will conduct fundraising events, correspond with, and visit potential donors in and outside Malawi. The target groups will be well-known philanthropists, the business community, world leaders, and friends of BMI.

DESIGNATED GIVING

BMI will attract donors who will provide funds with the intention of promoting their business or family name provided it is within the objects of the BMI. Thus, buildings at BMI will be named after organizations or people that have donated substantially to the construction of a particular structure. Companies will be challenged to sponsor the construction of buildings or running or programs at BMI to promote their products.

BMI has so far received a pledge of US$500,000 from a Korean philanthropist for the construction of the Center for Excellence in Education which will be named after his mother.

ENDOWMENT

The Founder will endow the BMI with a substantial amount of personal funds which will go into an investment account. The Founder has so far provided US$100,000 for the establishment and management of the BMI Secretariat and Launching activities.

REVENUE ASSUMPTIONS

Once the BMI campus is operational, it is anticipated that revenue will be generated from participation fees, membership fees, and income generating activities.

PARTICIPANT FEES

Each of the four centers at the Institute will run short courses, distance education programs, workshops, conferences, and training workshops. A participation fee will be charged for attendance of any of these programs, symposiums, and conferences. Another cost recovery mechanism will be to charge an administrative fee in addition to the course fees. Payment of administrative fees will also be applied to conference participants. It is anticipated that revenue generated from user fees and administrative fees will amount to 30 percent of the annual operational budget.

MEMBERSHIP FEES

A one-time annual membership fee will be charged to all employment and training organizations participating in the Institute's programs and benefiting from its heavily subsidized training courses. However, the fee structure will be graduated so that smaller organizations pay less. Member organizations will receive a quarterly newsletter and have direct access to training materials, tool kits, application forms, and information data free of charge through the BMI website. In addition, member organizations will receive technical assistance from BMI on how to implement the ideas its employees gained from the training programs. Members will attend annual general meetings of BMI and provide input on how the programs are being conducted.

INCOME GENERATION

The BMI will generate income through the provision of accommodation, transport, technological and catering facilities to conference participants, resident course participants, and the general public.


Specific charges will be determined according to prevailing market rates. It is projected that 20 percent of the operating budget will come from income generating activities.