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