Frequently Asked Questions
1. What is (RED)™ / (PRODUCT) RED?
(RED) is a brand created to raise awareness and money for the Global Fund by teaming up with the world’s most iconic brands to produce (PRODUCT) RED branded products. A portion of profits from each (PRODUCT) RED product sold will go directly to the Global Fund to invest in African AIDS programmes, with a focus on women and children.
Bono and Bobby Shriver, Chairman of DATA (Debt, AIDS, Trade Africa), created (RED) to engage the private sector in the fight against AIDS in Africa. Our launch partners include: American Express, Converse, Gap, Giorgio Armani and Motorola. Discussions are ongoing with other potential partners.
3. Why have you created (RED)?
To engage the private sector, its marketing prowess and funds in the fight against AIDS in Africa.
Private businesses contribute less than 1% of the Global Fund’s resource needs. (RED) is designed to kick-start a steady flow of corporate money into the Global Fund.
(RED) is not a charity. It’s a commercial initiative designed to create awareness and a sustainable flow of money from the private sector into the Global Fund to fight the AIDS pandemic in Africa.
5. What is the relevance of the name (RED)?
(RED) is the colour of emergency and the colour of blood which is one of the ways HIV enters the system.
6. What is Bono’s involvement?
Bono and Bobby Shriver, Chairman of DATA (Debt, AIDS, Trade Africa) created (RED) to engage the private sector in the fight against AIDS in Africa. Having set up DATA together in 2002, it became apparent that while DATA leveraged investment from the public sector to the Global Fund, a need remained for greater private sector funding.
Established brands who license the (PRODUCT) RED mark send a portion of the profits made on (PRODUCT) RED products directly to the Global Fund to fight AIDS in Africa. (RED) never handles this money.
A licensing fee for use of the (PRODUCT) RED mark is used to manage and market the (RED) brand.
8. Which brands are involved so far?
Making the products the colour red is not a requirement, however some may choose to do so. All will bear the (product/brand) RED logo superscript.
Remember, giving isn't the reason to buy a (PRODUCT) RED product. It is simply built into the product and the act of purchasing these products. In fact, we believe that some people will buy (PRODUCT) RED products without even knowing what (RED) is about or without even knowing what they have just made happen for Africa. And we welcome these people too!
10. Are there any programmes in particular that the money will be directed to?
All funds generated by sales of the (PRODUCT) RED products will support Global Fund-financed programmes which positively impact the lives of women and children affected by HIV/AIDS in Africa. These include programmes in countries such as Rwanda, which has a proven track record and ambitious targets. For example, in the past two years, Rwanda has increased the number of people receiving treatments for HIV/AIDS ten-fold.
11. Do (PRODUCT) RED items cost more?
The point of (RED) is to make the partner company pay money to the Global Fund by sharing a portion of its profit with people dying of AIDS in Africa. This is a key aspect of the consumer proposition. The company pays extra - the purchaser does not. Some partners have created product lines that are elevated in terms of the content or materials used (e.g. higher end denim or handmade mudcloth from Mali), but that pricing is comensurate with the materials and production issues involved. The margin of profit that accrues to the Global Fund remains the same.
12. How does the (RED) money get to where it needs to go?
By combining the marketing power of the world's leading consumer brands with the accountability, scale and pace of Global Fund grant-making, (Product)RED has created a new business model to effectively raise and impactfully invest significant resources to combat AIDS (in Africa). (RED) grants (i.e. Global Fund grants supported with (RED) funds) represent the best performing programs within the Global Fund's extensive portfolio of AIDS grants in Africa, thus ensuring that every dollar raised is effectively and immediately translated into lives saved, and that every life thus saved is accounted for. Current (RED) grants are Rwanda and Swaziland. Funds raised by (RED) partners are contributed directly to the Global Fund, which then transfers those funds to (RED) grants in line with the achievement of their respective performance targets. Over $10 million has already been raised to date, reached the grant recipients in Rwanda and Swaziland, and saved thousands of lives. As (RED) continues to grow and generate additional funding, so too will the portfolio of AIDS grants supported, while maintaining the strict performance standards of the Global Fund and ensuring the effective use of those funds.
The impact and progress of Global Fund financed-programs has been possible because of its unique approach. Through its small staff and efficient systems, the Global Fund has administrative costs of less than one percent of all the money contributed to it, ensuring that the vast majority going directly to support life-saving work in poor countries. In addition, the Global Fund's performance-based funding model holds its recipients to strict standards, only releasing money if programs prove that they are achieving strong results and shutting down those that do not spend money effectively. A key aspect of the performance-based model is the oversight of the transparent and effective use of funds. The Global Fund contracts Local Fund Agents, private accounting firms such as PWC or KPMG, in every country receiving funding, who conduct the initial due diligence on financial and management capacity of grant recipients and provide ongoing verification of program results. As in the case of the Global Fund's suspension of grants to Uganda in 2005 and Ukraine in 2004, any indication of misuse of funds leads to rapid corrective steps - decisive action was taken to replace the grant recipient, guarantee the recovery of funds and ensure the continuation of critical services. As a result, a donor to the Global Fund, whether a private citizen or a government, can be confident that their contribution will rapidly have an impact on the lives of people in need.
13. How can a foundation apply to be a beneficiary of (RED) funds?
The Global Fund supports the plans, projects and interventions which countries themselves have selected as their national priorities. These strategies and priorities are determined through a national body in each country known as a Country Coordination Mechanism, or CCM, which is comprised of representatives from all relevant sectors, including Government, Civil Society, the Private Sector and Communities affected by the diseases. This nationally owned and inclusive mechanism ensures that the country's strategies and priorities are determined in an integrated and effective manner and that funds are channeled in the most impactful way.
Once the national strategy and priorities are set, the CCM determines the projects and charities to be included in the national proposal and submits this proposal to the Global Fund. At present, about half of Global Fund financing goes to non-government recipients around the world. The Global Fund does not accept proposals directly from individuals, groups or organizations, and all proposals for funding must be channeled through the CCM in the country. The contact information for every CCM can be found on the Global Fund's website www.theglobalfund.org - Click on the drop-down menu named "Or Choose A Country" on the left-hand side of the home page and select a country; this will lead directly to the information page for that country containing contact information for CCM members. Additional information about the proposal process can be found at: http://www.theglobalfund.org/en/apply/proposals/. The proposal forms and guidelines for CCMs can also be found there. The allocation of funding to specific projects occurs upon the approval of a new grant proposal; the timing and availability of funding will vary by country.
Funds raised through (Product) RED are channeled to (RED) grants - pre-selected Global Fund-financed HIV/AIDS grants in Africa. At present, the (RED) grant portfolio includes Rwanda and Swaziland. Updates to the (RED) grant portfolio can be found at: http://www.joinred.com/globalfund.asp. As with all Global Fund grants, the projects supported through (RED) are selected by the CCM in that country, as described above. This ensures that (RED) funds are invested in programs that are not only effective but also aligned with the national AIDS strategies and priorities. The process for applying for funding also remains unchanged, as described above, ensuring that there is no duplication of effort or unnecessary administrative burden placed on the CCM and grant recipients.
