DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: DECEMBER 2011

DRAFT APPLICANT SUPPORT PROGRAM: APPLICATION CRITERIA AND REQUIREMENTS
The Internet is a global resource, and the diversity, competition and innovation made possibleby the new gTLD program should provide an inclusive opportunity for all to participate. The
Applicant Support Program, conceptualized by ICANN volunteers through the Joint Applicant
Support Working Group, seeks to serve the global public interest by ensuring worldwide
accessibility to, and competition within, the new gTLD program.
This section provides an explanation of the criteria that will be used in this first round program
to identify candidates who merit a reduction in their application fees. By establishing clear
criteria and a transparent review process, ICANN aims to help ensure that it directs limited funds
to those applicants and projects that demonstrate need and benefit the public interest.
1. CRITERIA OBJECTIVESThe Applicant Support Program is designed to provide financial support to deserving applicantsin order to reduce barriers posed by the application fees.
ICANN already has detailed technical and operational criteria to evaluate and select candidates
capable of running a registry and who will preserve the stability and interoperability of theInternet. Furthermore, all applicants for ICANN financial support will already have had tocomplete the new gTLD application – requiring clear demonstration of technical, operationaland financial capabilities to execute their projects.
The Applicant Support Program does not relax existing criteria for a new gTLD, but would
measure interested new gTLD applicants against additional criteria to identify those who best
demonstrate: (1) service in the public interest; (2) financial need; and (3) minimum financial
capabilities. New gTLD applicants found to best meet these criteria will be awarded a significant
reduction in their application fees.
2. CRITERIA EXPLANATION AND EVALUATION PROCESSThe following section provides detail about eligibility, the Application Support Program criteria
and the types of information that may be provided by applicants to demonstrate their
qualifications for the Applicant Support Program.
a. Establishing Eligibility
All applicants requesting support through the Application Support Program first will undergo areview to determine eligibility for the Applicant Support Program. Candidates applying for thefollowing will be excluded from consideration if they are:

applying for a gTLD string that is intended to reference a trademarked brand;a national or federal governmental entity or an entity with controlling interest by anational or federal government;

applying for a gTLD string that is a geographic name as described in the Applicant
Guidebook;

DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

Only one support application for any entity or affiliate of that entity will be considered. So while
an entity may apply for multiple TLDs, it is allowed only one support application.
Eligible candidates will be required to pay a $47,000 application fee at the time of application
submission.1
All applicants who meet these initial eligibility criteria and who pay the $47,000 application fee
are then separated into the Applicant Support Program review process.
b. Criteria Overview
Based on the recommendation of the Joint Applicant Support Working Group, candidates will be
evaluated against three criteria sets:

Public Interest Benefit (to prioritize funds for those projects that would offer
demonstrable benefit to the public or suitable community group).

Financial Need (to distribute funds to those entities that lack sufficient financial
resources to pay for application fees or otherwise execute their projects, or who would
not be able to raise those resources through other means); andFinancial Capabilities (to help ensure those receiving funding will be able to manage
those funds and execute projects if successful).

The sequence of criteria reflects the order in which they should be assessed by the panel
because the first test is core to the goal of new gTLDs Applicant Support Program.
c. Evaluation and Scoring
The scoring of the three main criteria will be performed by an independent Support Application
Review Panel (SARP) based on information provided in the Applicant Support application. The
SARP may also rely on the ICANN new gTLD Application, public comments, and independent
research, if deemed desirable to reach informed scoring decisions. The criteria are, to a certain
extent, subjective. That subjectivity is deemed necessary to enable the SARP to reach a fair
result and provide the discretion to interpret the information provided to it in the best light.
While efforts have been made to systematize the scoring process, interpretation of the criteria
is at the sole discretion of the SARP.
All applicants to the Support Program will have already completed the new gTLD application.
Guidance has been provided when components of standard application materials might also be
applied to its Support Program application.
Notice: SARP panelists might have access to certain non-confidential standard ICANN applicationmaterials. The SARP’s objective is to establish whether applicants meet the financial support
criteria– but not to weigh relative merits of overall gTLD applications. Therefore, the SARP may
arrive at different conclusions than ICANN review panels when evaluating similar

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Refunds can be obtained in certain circumstances: conditions for refunds of that fee can be found in the
Applicant Support Process document.

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DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

documentation since different objectives, criteria and review processes will be the basis for its
evaluations.
3. CRITERIA AND SCORING
The following are the criteria for the Application Support Program. The criteria is used both as a
threshold and to rank qualifying applicants.
As stated in the Applicant Support Process document Support applicants first have to meet athreshold score to qualify for financial aid and keep their new gTLD application active. If thethreshold is not met, the new gTLD application will be rejected. Those meeting the threshold
will then be rank ordered using the same criteria.
To meet the threshold, support applications must score:

5 of 9 points on the first criteria set,

3 of 5 points on the second criteria set, and

1 of 2 points on the third criteria set.

The threshold is set high to discourage abuses as recommended in the Joint Applicant Support
Working Group Report.
Criterion #1 - Public Interest (0-9 points; minimum score required: 5)
Applicants will receive points as indicated for demonstrating each of the following public
interest criteria. Applicants should indicate on their application for funding support whichcriteria they believe thier application meets. Applicants do not need to meet all criteria, but
priority will be given to those who are scored the highest.
Community based project (0-1 point)o

The ICANN Applicant Guidebook specifies that each applicant must declare if its
application is a community-based project. Applicants for financial support that
also have indicated that a project is community-based will be evaluated by the
SARP teams against the four Community Priority evaluation criteria found in
Module 4 of the Applicant Guidebook: community establishment, nexus
between proposed string and community, registration policies, and community
endorsement. Rather than following the strict scoring methodology in the
Applicant Guidebook, the SARP will perform a high level review to determine
whether the applicant generally meets those criteria. Applicants that generally
meet the criteria in the four tests will be given 1 point. Applicants that do notmeet this threshold will receive 0 points.
It is important to note that while the SARP and the ICANN new gTLD evaluation
panels are using similar criteria in certain cases, the SARP’s objective is to
identify those applicants most worthy of financial support to help reducebarriers to entry for the ICANN application process, not to evaluate anapplicant’s new gTLD application. Some applicants that receive funding support
may not ultimately be successful with their new gTLD applications. Given that3

DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

the SARP’s priority is to identify those candidates that meet public interest
priorities and not to address a contention set, the SARP will be given
instructions to be more liberal in its interpretation of the Community Basedpriority criteria. In this regard, SARP findings related to community-based
projects may be somewhat inconsistent with the Guidebook described
Community Priority Evaluation that the financial aid applicant may later face.
Public interest benefit including support for distinct cultural, linguistic or ethnic
communities (0-1 point)o

The applicant support program targets those applications that provide benefit
to the public interest. Those applications that support distinct cultural, linguisticor ethnic communities in a way that demonstrates a benefit to the public
interest, enhances the public good, or promotes the general welfare will begiven priority. Applicants who meet the community-based application threshold
might also receive points under this criterion. However, some applicants notdesignating their applications as community-based applications, might still offer
benefit for a distinct cultural, linguistic or ethnic community. For example, thismight include groups with geographically dispersed diasporas or linguistic
minorities protected by certain treaties. Applicants who demonstrate how theirproject will benefit such communities and serve the public interest will receive 1
point. Applicants may provide documentation already prepared to support theiranswer to Question 18 (Mission/Purpose) in the ICANN new gTLD application,
but may also provide supplemental documentation as appropriate.

Service in an under-served language, the presence of which on the Internet has been
limited (0-1 point)
o Candidates applying for a string that is providing build-out of a language or
script whose web presence is limited will be given priority for funding support.
This may include smaller script communities whose scripts are very limited on
the web and communities that regularly use more than one script but mightotherwise face challenges with the build out of two scripts. Applicants thatprovide data or other documentation demonstrating the lack of presence of
their language on the Internet and how their project will support that language
presence will receive 1 point.

Operation in a developing economy (0-2 points)o Applicants from developed countries may apply, but priority will be given to
those from developing economies. Evaluation will be based on the expected
beneficiary community of the project and not the location of the back-end
operations. Applications from and benefitting Least Developed Countries,
Landlocked developing countries, and Small Island Developing States based on
the listing of the UN Department of Economic and Social Affairs (UNDESA) will
receive 2 points. Applications from and benefitting indigenous peoples as
described in Article 1 of Convention No. 169 of the International Labour
Organization and the UN Declaration on the Rights of Indigenous Peoples will
receive 2 points. Applications from and benefitting those from the UNDESA listof Developing Countries, who are not LDCs, LLDCs or SIDS, will receive 1 point.
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DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

Applicants from all other (developed) countries and who are not Indigenous
Peoples will receive 0 points.


Advocated by non‐profit, civil society and/or non‐governmental organizations in amanner consistent with the organizations’ social service mission(s) (0-1 points)o An applicant may demonstrate benefit to the public interest through support for
their project from local or partner organizations such as non-profit, civil society,and/or non-governmental organizations. Applicants may meet this requirement
by providing letters of support from such organizations that indicate how the
proposed project would further the organization’s social service mission or
benefit the public interest; and evidence of gTLD project partners or
donors/funding sponsors whose mission is aligned with the public interest.



Operation by a not-for-profit organization (0-2 points)o Priority will be given to entities that are not formed as conventional for-profit
businesses – i.e., non-governmental organizations, non-profit entities, civilsociety organizations, foundations, trusts, mission-based organizations, etc.
Non-profit organizations and similarly organized entities are eligible for 2 points;
other organizations such as public-private partnerships, governments(depending upon circumstances such as the TLD purpose), and hybrid entities(e.g. those that are profit/non-profit) are eligible for 1 point.

Operation by a local entrepreneur or not-for profit organization in a developing
economy providing demonstrable social benefit (0-1 points)o While the applicant support program is not intended to be used as a substitutefor conventional business risk, there is value in providing some support toentrepreneurs or non-profit organizations from developing countries whose
project provides a demonstrable social benefit but who are unable to execute
their project without funding support. The applicant can demonstrate that its
project will provide social benefit including, but not limited to: (1) providing
investment in the skill base of the target community; (2) fostering genderbalance and the presence of minorities in the target community; (3) providing a
positive contribution to the national or regional economy of its operation.
Applicants will receive 1 point if able to document such social benefits.

Criterion #2 – Financial Need (0-5 points; minimum score required: 3 points)
A maximum of 5 points is possible on the Financial Need criterion. Applicants will be required tosubmit materials to detail various constraints that affect their ability to acquire and implement agTLD without assistance.
As measured by:Operational Environment (0-2)
o

A complete answer demonstrates why the applicant may have limited access tofunding and specific environmental factors that have caused constraints toraising initial capital to pay for fees. The applicant may provide letters from5

DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

other funding organizations that have considered requests for support on this orother efforts. A response will merit a 2 if its assertions are substantiated with
documentation specific to the gTLD project application and its lack of ability toraise funds for the application fee or other initial expenses. A response will
merit a 1 if the applicant generally describes a challenging operational
environment, but does not have documentation specific to the financial aspectsof its project. A response that does not provide adequate justification for why
its operational environment poses a challenge to raising the financial capital tosupport its application or project is given 0 points.


Organizational size (0-1)
oProject budget and funding resources (0-1)
oSmall and medium sized organizations often face specific challenges in obtaining
sufficient human and financial resources to carry out their business ororganizational mission. Moreover, these organizations may facedisproportionate costs in meeting the administrative burden required bycompleting the ICANN gTLD application. To help address this barrier, theApplicant Support Program will give priority to small and medium sizedorganizations when evaluating applications. Small and medium sizedorganizations, not associated with a larger parent entity, will be given 1 point.

In order to complete its ICANN gTLD application, the applicant must provide
financial projections that demonstrate a sustainable business (even if breakeven is not achieved through the first three years of operation). Applicants to
the Applicant Support Program should provide a narrative to correspond with
their Financial Projections and their description of funding and revenue sources
to identify where ICANN financial support would assist in ensuring sustainable
operations or mitigating any projected risks. Applicants should provide tabular
information on operational expenses and other relevant data that is also
provided in their gTLD application. Applicants may also include letters fromdonors who may be promising project funding if the gTLD application is
successful, but which may point to a lack in the initial start up funding to pay the$185,000 application fee. Applicants who clearly identify why financial support
would help to improve their financial projections or mitigate any potential risks
will be given 1 point. Applicants whose financial projections exhibit fundingneeds (or whose projections demonstrate inadequate start up capital and three
years of sustainable operations) will be given 0 points.

Outreach for financial support (0-1)
oApplicants that have taken the extra steps to seek additional funding or create
partnerships that could lead to additional support such as through matching
grants or guaranteed loans or payments will be considered for an additional
point. The applicant may provide letters from other organizations that haveconsidered requests for support on this or other efforts. A response will merit
one point if its assertions are substantiated with documentation specific to thisproject, otherwise no points will be awarded.
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DRAFT – APPLICATION CRITERIA AND REQUIREMENTS: 10 DECEMBER 2011

Criterion #3 Financial Capabilities (0-2 points; minimum required score 1 point)Basic financial capability (0-1) to operate an ongoing concern of the proposed registryo While an applicant’s project should demonstrate some level of need as
described above, the applicant must also demonstrate basic financial capability
to operate an ongoing concern of the size and complexity of a proposed registry
through demonstrating managerial capabilities and financial resources.
Applicants should provide a summary of their qualifications in meeting
Questions 45-47 in the ICANN gTLD application section on basic financial
capability. Applicants should provide emphasis on demonstrating their ability to
manage an organization and finances relative to the size of their project. Those
meeting the requirements are given 1 point, at the discretion of the SARP.
Those who fail these requirements are given 0 points.

Previously executed projects (0-1 point)
o Applicants with proven results in managing organizations and projects of thiscomplexity in the past will be given priority. Applicants who provide
documentation citing previously managed and operated programs either by theorganization or its key personnel will be given 1 point.

Award Decisions
In the case that available funding cannot meet all bona fide requests (i.e. request that meet thethreshold scoring requirement) , the scoring system enables the SARP to rank and prioritize
eligible applications and award financial aid to those determined to best meet the three criteria.
Once the highest scoring candidates have been identified, the SARP also will work to ensure
diversity in its final funding decisions across areas such as language, script, cultures, businessmodels, and regions to ensure that those who receive the fee reduction will tend to mostamplify the benefit.
Some organizations are well acquainted with grant application processes or the ICANN
environment. Evaluators will be instructed to be alert for those assistance applicants who are
not in those two categories to ensure that all applications are examined with appropriate care.
A relatively high score threshold has been established to identify those who do not meet basic
financial need and public interest benefit criteria and in order to help mitigate potential for
gaming. Those candidates that meet the established need/public interest threshold, but who do
not score highly enough to benefit from ICANN Financial Support will be given an opportunity to
pay the balance of the $185,000 application fee and proceed forward into Initial Evaluation.

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