The Microjustice4All Programs and Country Organizations have a mixed funding model:
- External funding from donors (usually from the public sector but there might also be private funding) for the start-up phase and thereafter for the permanent, non-variable costs of the activities with a public function (mainly for legal education, awareness-raising and lobbying). External funding is also necessary in humanitarian crises in order to facilitate the emergency response and the rehabilitation of victims. In addition, funding from donors is necessary to provide the most basic legal solutions (e.g. legally correct civil documentation) for the very poorest at the BoP.
- Charging the clients for service-delivery: in this way, Microjustice4All Programs can structurally develop a nationwide distribution network within a country without needing permanently large funds from the donors. Furthermore, the affordable Microjustice4All legal services encourage the poor to be self-reliant.
The following factors enable financial sustainability within a few years:
- Low operational costs (by standardization of services leading to economies of scale and high efficiency, and often working with undergraduate law students, who are primarily seeking to gain experience rather than income),
- Large volume (due to the high demand and wide distribution network),
- Payment of affordable fees by the clients,
- Using pre-existing infrastructures of partners, especially for distribution.
Therefore, Microjustice4All is not a typical donor-dependent project. However, the public function of Microjustice4All of public education and legal capacity building requires external funding in line with the Global Goals for Sustainable Development and the “Responsibility to Protect" principle to prevent conflict and build peaceful, democratic societies. The funding scheme of an ideal Microjustice4All Program or Country Organization would be as follows:
In the development phase of the organization, external funding will be needed for all costs. This includes the costs of starting up the organization and developing the products. This can be seen as seed money. During the next three phases, fewer external funds are needed as clients start to pay for their products and services. In the last and ideal stage, external funds are only used for public functions and further development of the Microjustice4All methodology. The activities related to service provision to clients should be fully funded by the clients.
The Microjustice4All Methodology has been set up to balance the public and private financing models to make it sustainable. Finding the right balance between donor-independence and affordability for clients is a continuous process. In summary, Microjustice4All Programs need to be financed sustainably and ethically.