×
An Institutional Sustainability Explainer

Cross-links: Governance & Ethics Policy (Section 6), Institutional Architecture Explainer


Executive Summary


The Ilaje Development Council (IDC) is funded through a limited set of transparent, policy-defined mechanisms designed to sustain its governance, coordination, and oversight functions without creating conflicts of interest. IDC does not execute projects, hold equity, receive commissions, or participate in commercial returns. All permitted revenue sources are structured on a cost-recovery basis and governed by formal rules on disclosure, independence, and non-interference. This funding model is designed to preserve institutional legitimacy, investor confidence, and regulatory credibility.


1. Funding Principles That Govern the System


IDC’s funding model is built on five non-negotiable principles embedded in its Governance & Ethics Policy:

1. Non-Profit Orientation

IDC exists as a non-profit, non-political development institution. Revenue is used solely to sustain institutional capacity, governance functions, and administrative operations.

2. Cost-Recovery, Not Rent-Seeking

Fees are structured to recover defined institutional costs, not to extract value from projects or investors.

3. No Commercial Participation

IDC does not take equity, profit shares, success fees, commissions, or carried interest in any project or investment vehicle.

4. Structural Independence

Funding mechanisms must not compromise IDC’s independence from commercial execution entities, political actors, or private interests.

5. Transparency and Disclosure

All permitted revenue categories are disclosed, documented, and subject to internal and external oversight.

These principles apply uniformly across all IDC activities, partnerships, and engagements.


2. What IDC Does and Therefore What It Funds


IDC’s funding structure is directly linked to its institutional role.

IDC is responsible for:

  • Defining development priorities
  • Structuring governance frameworks
  • Aligning public, private, and community stakeholders
  • Endorsing development initiatives
  • Providing strategic oversight and coordination


IDC is not responsible for:

  • Executing projects
  • Deploying capital
  • Managing assets
  • Generating commercial returns

As a result, IDC’s funding supports governance and coordination functions only, not project delivery or investment performance.


3. Permitted Revenue Sources


IDC may receive funding from the following sources, as defined and constrained by policy.


3.1 Governance Structuring Fees

IDC may charge fixed, pre-defined fees for institutional and governance-related work, including:

  • Development framework design
  • Policy and institutional architecture structuring
  • Multi-stakeholder coordination
  • Governance reviews and endorsements
  • Strategic alignment processes


These fees:

  • Are set independently of project size or profitability
  • Are not contingent on investment outcomes
  • Do not grant any control or influence over execution


3.2 Institutional Coordination Fees

Where IDC is formally requested to coordinate complex, multi-party development initiatives, it may recover costs associated with:

  • Stakeholder convening
  • Inter-agency alignment
  • Documentation and reporting
  • Governance monitoring and verification


Coordination fees are:

  • Time- and scope-bound
  • Disclosed in advance
  • Documented through formal agreements


3.3 Grants and Development Support

IDC may receive grants or institutional support from:

  • Development partners
  • Foundations
  • Multilateral or bilateral programs
  • Philanthropic entities


Grant funding must:

  • Align with IDC’s mandate
  • Not impose execution responsibilities
  • Not compromise institutional independence

Grant conditions are reviewed to ensure compliance with IDC governance standards.


3.4 Sponsorships and Institutional Partnerships

Limited sponsorships or partnerships may be accepted for:

  • Research
  • Knowledge dissemination
  • Capacity-building activities
  • Public forums or convenings


Such arrangements:

  • Do not confer preferential treatment
  • Do not influence decision-making
  • Are disclosed and ring-fenced


4. Prohibited Revenue Practices


To protect credibility and avoid conflicts of interest, IDC explicitly prohibits the following practices:

  • Taking equity or ownership stakes in projects
  • Receiving commissions or brokerage fees
  • Charging success fees tied to capital raised or returns generated
  • Participating in profit-sharing arrangements
  • Acting as an investment promoter or placement agent
  • Receiving compensation from contractors, developers, or operators

These prohibitions apply regardless of scale, opportunity, or external pressure.


5. Relationship to Commercial Execution Entities


IDC operates within a separate institutional system.

  • Commercial execution is undertaken by independent entities, such as the Ilaje Investment Corporation (IIC), once it is activated.
  • IDC does not control, manage, or financially benefit from such entities.
  • Any interaction between the IDC and execution entities is governed by formal separation rules and information barriers.

IDC’s funding is therefore not dependent on the commercial success of projects it endorses.


6. Fee Setting, Approval, and Disclosure


All fees charged by IDC are subject to internal governance controls, including:

  • Defined fee categories approved by the governing body
  • Written agreements specifying scope and limits
  • Documentation of services rendered
  • Separation between fee approval and endorsement decisions


Fee structures are designed to be:

  • Predictable
  • Proportionate
  • Justifiable
  • Auditable


7. Oversight and Accountability


IDC’s funding practices are subject to multiple layers of oversight:

  • Internal Oversight: Governing bodies review revenue sources for policy compliance.
  • External Review: Independent audits may assess financial practices and disclosures.
  • Public Transparency: Core funding principles are publicly available through the Knowledge Base and policy documents.

Any breach of funding rules is treated as a governance violation under the Governance & Ethics Policy.


8. Why This Funding Model Exists


This funding structure is designed to ensure that:

  • Governance decisions are not financially motivated
  • Endorsements are not influenced by commercial upside
  • Investors can rely on institutional neutrality
  • Regulators can assess compliance clearly
  • Communities can trust the development process

IDC’s legitimacy rests on its ability to operate without financial entanglement in execution.


Canonical Summary

The Ilaje Development Council is funded through transparent, policy-defined, cost-recovery mechanisms that support governance and coordination functions only. IDC does not participate in commercial execution, investment returns, or profit-sharing. This funding model is designed to preserve institutional independence, reduce investment risk, and maintain public trust.