WaterPartners Board MeetingFebruary 7-9, 2008Juno Beach, Florida
WaterCredit 2.0
WaterPartners Board MeetingFebruary 7-9, 2008Juno Beach, Florida
Discussion Topics
1. Why are we interested in proving WaterCredit
2. Where we’ve been and what we’ve done3. What’s worked?4. What’s not worked?5. What are we doing now and going forward?6. How will we measure success?7. Risks 8. Next Steps
Why we are interested in proving WaterCredit
Drives us closer to clear line of sight on achieving our vision/mission
Potential to reach far more people with WS&H per dollar invested
Leverage market forces, the ultimate key to scale and sustainability
Potential to drive greater impact in the sector overall
Different approach: ownership v. dependency
Where we’ve been, what we’ve done
South Asia pilot programs launched in 2003, Kenya in 2005
$1.3 million of grant money deployed under various structures
NGOs lend grant money to community based organizations (CBOs)
CBOs collect fees from end-customer Repayment rates are 98%+ in South
Asia, but only ~25% in Kenya
What’s Worked? Working with NGOs strong in
community mobilization to spur demand
Funding an NGO’s and MFIs WC start-up costs with grant money
Using MFI’s to provide training to NGOs
Loaning to smaller, simpler projects
What’s Not Worked? Trying turn NGOs into MFIs Working in areas where microfinance
does not have a long, successful history
Working with smaller NGOs to implement WaterCredit
Providing minimal funding for start-up costs
Lending to larger, more complex projects without project screening and project management training
Donor
Beneficiaries
Grant $ for Water Credit
Loans ($)
RepayLoans ($)
WaterPartners
NGOs
Connection Fees ($)
Water
Water Fees ($)
Loans ($)
Repay Loans ($)
MFI
$ to Pay For NGO
Training
Training
Existing WaterCredit Model (Kenya)
Limited Grant $
-For Start Up Costs &
CapacityBuilding
Community BasedOrganizations
(CBO ) acting as aMicroutility
WaterPartners
MFINGOs
Self Help Groupsor CBO
acting as aMicroutility
($) To Subsidize
-
Start Up Costs &
Credit Enhancement
Fees
CapitalMarkets
$ Fees for Cre
dit Enhancement
Example Construct of WaterCredit 20.
Loans @MarketRates
TechnicalAssistance
Beneficiaries
Connection Fees
Water
Water Fees
Donor Grant $
$ For Providing Technical Assistance,
& Mobilizing Communities
Loans at Commercial R
ates
Cre
dit Enhancement
Community Mobilization
& Training
RepayLoans
Risks Strategic Risk
Donations could have been deployed more effectively as grants
Reputation Ability to attract funding for new initiatives Ability to attract Partner Organizations
Opportunity Costs Attention could have been given to other
initiatives yielding higher benefits
How will we measure success?
Ability to attract grants for WaterCredit Cost per beneficiary from donor
perspective is lower than traditional grants We reach more beneficiaries than would
otherwise be possible with traditional grants
Partner Organizations remain accredited via independent audits
MFIs graduate to commercial credit for water and sanitation
WaterCredit 2.0 Gating Milestones
Complete Partner Organization Certification Procedure by March 31, 2008
2 new Partner Organizations certified by June 30, 2008
$1MM in WC grant commitments by December 31, 2008
MFIs leverage WPI grant to gain $500K of commercial credit by December 31, 2008
Note: The Board would receive quarterly reports on progress against these milestones
WaterCredit 2.0 Gating Milestones – con’t
30,000 beneficiaries by March 31, 2009 Repayment rate greater than or equal
to 80% by March 31, 2009 90% of Partner Organizations
satisfactory opinions from third-party financial and operational auditors by June 30, 2009
Repayment rate greater than or equal to 90% by December 31, 2009
Note: The Board would receive quarterly reports on progress against these milestones
WaterPartners Board MeetingFebruary 7-9, 2008Juno Beach, Florida
Development & Communications Plan
WaterPartners Board MeetingFebruary 7-9, 2008Juno Beach, Florida
WaterPartners Development& Communications Plans
The full text of these plans is available on the board website at www.waterpartners.org. The name of the document is Master Development and Communication Plan and it is located under the Operations tab.
WaterPartners Communication Plan
Define the WaterPartners’ brand, key messages and audiences in order to increase brand awareness.
Implement a comprehensive communications plan to increase awareness of WaterPartners and the global water crisis through increased media coverage and outreach.
Maximize value of Water.org asset. Secure a celebrity advocate for WaterPartners. Increase grassroots support via increased outreach
to schools, faith communities, special events and cause-related marketing.
Approved by the Development and Communications Committee on 7/12/07.
FWV Brand Audit Findings Gary White is highly respected and there is
broad support for his vision. Need to build consensus on how to achieve
the vision. WaterPartners vs. Water.org. Audience & Positioning: Thought leaders vs.
mass marketing (wholesale vs. retail). Recommendations
Shorten brand to WaterPartners and use Water.org as call to action.
Dual communication strategy targeting people in the sector and out of it.
Approved by the Development and Communications Committee on 12/13/07.
Universal Core Messages Work for all audiences.
The global water crisis is a leading cause of illness, death and lost productivity in developing countries.
WaterPartners is the premier non-profit in the United States working exclusively to alleviate this problem.
WaterPartners projects are proven to be sustainable, saving lives and improving long-term quality of life.
To learn more about the global water crisis and how you can help, visit Water.org.
Segmentation Summary
Audience Track Audience Type Target Messages Communication Channels Funding Type
Track 1--Large Institutional Donors
Foundations (including those associated with venture philanthropists)
Innovation, esp. WaterCredit; large-scale, systemic changes; outcomes/ research
1 to 1, face to face; (media attention and networking will help open doors); conferences/ symposia
Restricted
CorporationsHalo effect/ marketing value for
company
1 to 1, face to face; (media attention and networking will help open doors); conferences/ symposia
Restricted
Track 2--Individuals
High net worth individuals
Transformation--especially at the village level--with special emphasis on women's empowerment and benefits for children
Peer networking (including successful ex-patriots); internal communications (Ripples, e-newsletter, etc.); wealth managers
Restricted
Grassroots Individuals
Transforming individual lives, with special emphasis on women's empowerment and benefits for children
Direct mail; web (including social marketing sites); strategic advertising; special events; media; outreach (schools, faith communities, civic groups, etc.); internal communications (Ripples, e-newsletter, etc.);
Unrestricted
PR & Media Relations Proactive earned media campaign utilizing
targeted and optimized press releases supported by tailored collateral messages.
Conceive, develop and manage a series of traditional and innovative vehicles to effectively communicate key messages. Internet advertising. Print PSAs. School curriculum. Speaking opportunities.
Water.org 2.0 & Web Outreach
Harness the power of the internet to broaden and deepen the base of support and leverage fundraising capability.
Customized, interactive experience Emotional connection through stories, photos, video,
etc.—take people to projects. Integrated with external websites and internal systems. Empowering constituents to take action (donate,
advocate, volunteer, etc.) Global Village Initiative
Coordinated social networking campaign featuring interlinked social media presences and virtual villagers.
Reviewed by the Development and Communications Committee on 1/24/08.
Marketing & PR Results Multiple Tier 1 media placements, including the
Wall Street Journal, Christian Science Monitor, Public Radio International & USA Today Online.
11M media impressions in the last six months, with conservative ad equivalency of $460K.
7:1 ROI relative to our PR fees with FWV. Detailed information about these results is available on the board
website at www.waterpartners.org under the Operations tab.
Completion of Brand Audit Analysis. Redesign of Water.org in 2007.
Since 2005 on Water.org: Annual visitors have tripled from 100K to 300K. Online donors have grown from 15 to over 50 per month, with over
$70K raised in 2007. E-community membership has grown 120%, to nearly 4,400 today.
WaterPartners Fundraising Plan
Increase number of current donors to 3,450 in FY 08, up from 1,950 in FY 07.
Stellar after-care and stewardship program to keep donor retention above 60%.
Build on the strengths of existing geographic areas and open new fronts in strategic locations.
Relationship building with major gift prospects to increase donors over $1,000 to 195 in FY 08, up from 131 in FY 07.
Increase board-led fundraising effort to $160,000 in FY 08. Launch a planned giving outreach program to lay the
groundwork for substantial, long-term sources of revenue. Reposition WaterAmbassador program to maximize funding
and board development opportunities. Carry on tradition of grassroots support through outreach to
schools, faith communities, special events and cause-related marketing.
Approved by the Development and Communications Committee on 7/12/07.
Major Gift ($1,000+) Strategy
FY 08 Goal $2.9 million. Continue discovery process with existing donors. Expand prospect list
Networking Referrals Special events targeting major donors and prospects.
Build relationships with qualified prospects. Conduct research on newly-acquired donors. Solicitation and stewardship of qualified
prospects. Create new donor networks through attending
major philanthropy forums. Cultivate relationships with wealth management
community. Position WaterPartners as turn-key intermediary.
2008 Events
January 26 in Palo Alto February 23 in Chapel Hill February 25 in Charlotte March 5 in New York City March in Chicago April in Kansas City
Major Gift Results
Since 2005: Number of donors over $1,000 increased by
73%, from 82 to 143. Number of donors over $10,000 doubled from
10 to 21. Dollars raised from major gift fundraising
tripled, from $1M to $3.5M annually. Dollars raised from donors other than the top 3
grew from $400K to over $1M. Board-led fundraising grew from $50K to a goal
of $160K in FY 08.
Board Challenge Goal $160,000, up from $100,000 in
FY 07. Direct board giving: 6 of 12 have
contributed or committed $33,500. Board-led fundraising $70,000, (of
which $45,000 came from one couple).
Total for board challenge is $103,500, or 65% of goal.
Donor Recognition
Giving Level
Prompt Thank-You and Receipt
Ripples, etc.
Special Thank You from Gary
Listing in Annual Report
Special Gift (as
appropriate)
Village Sponsorship (if desired)
Personal Visit (if
desired)
$1-$999 X X
$1,000-$4,999 X X X X
$5,000+ X X X X X X X
Donor retention is currently 80% for all donors;
91% for donors over $1,000.
Donor Care Challenges Timeliness and quality of village-specific info
(photos, success stories, progress reports, etc.) from partners when somebody sponsors a village.
Identifying methods for recognizing gifts that are meaningful for donors and culturally-sensitive for villages.
What’s meaningful to one donor isn’t necessarily meaningful to the next.
Backlog on fulfillment of high-end donor recognition (i.e., it’s hard to keep the focus on stewardship when there is such urgent pressure for new donor acquisition.)
Geography is a challenge for making donor recognition more personal.
WaterPartners Board MeetingFebruary 7-9, 2008Juno Beach, Florida
Top Related