ANNUAL

REPORT 2014

WWW.CWFE.ORG

ANNUAL REPORT
2014

CONTENT

01 - A Message from the CEO

02 - 2014 Annual Report Highlights
04 - Part1: Organizational Overview & External Environment
08 - Part 2: Governance
12 - Part 3: Operating Model
16 - Part 4: Risks and Opportunities New Operating Model
18 - Part 5: Strategy and Resource Allocation
20 - Part 6: Performance Scorecard
22 - A Special Thank You
24 - Definitions and Impact Measurement Methodology
25 - Reference Hyperlinks

A MESSAGE FROM THE CEO

Dear Friends and Supporters
2014 was an important year in Clean Water For Everyones (CWFE) continuing evolution. The leadership team
recognized that a change in operational approach was necessary to ensure long term sustainable growth.
This recognition was grounded in two key facts: 1) competition amongst water focused charities for limited
donor dollars is fierce, and 2) the worlds poor are willing and able to pay for essential services like water
and sanitation if innovative financing mechanisms are put in place to support their needs. CWFE is now
transitioning away from its charity roots towards a social enterprise model that emphasizes service delivery
in exchange for nominal daily fees. This revised model results in income streams that help cover up-front
investment outlays: it also instills a sense of community ownership in the infrastructure we install. We have
successfully piloted our new model in Ghana via a Clinton Global Initiative Commitment to Action, and are
looking to scale our approach in the coming years.
CWFE is still a young organization, and we know we have a lot of growing up to do. That said, we aspire to
be best in class, and we can only attain this state by adopting a collective culture that demands continuous
improvement. Our commitment to excellence is reflected in the format of this annual report, which is closely
aligned with a reporting framework promulgated by the International Integrated Reporting Council. Integrated
Reporting promotes a more cohesive and efficient approach to annual reporting and aims to improve the
quality of information available to providers of funds to enable a more efficient and productive allocation of
capital. The document contains six distinct sections that address the following questions:
1.
2.
3.
4.

What does the organization do and what are the circumstances under which it operates?
How does the organizations governance structure support its ability to create a positive impact?
What is the organizations operational model?
What are the specific risks and opportunities that affect the organizations ability to create positive
outcomes, and how is the organization dealing with them?
5. Where does the organization want to go and how does it intend to get there?
6. What has the organization achieved during the period?

I hope you enjoy reading about CWFEs progress, and I thank you for your continued support.
Sincerely,

Abbey Wemimo
CWFE, Chief Executive Officer

2014

ANNUAL REPORT HIGHLIGHTS

OUR PAST
PROJECTS

EMERGING
OPERATING MODEL

PERFORMANCE
SCORE CARD

An estimated 24, 856

lives have been directly
or indirectly impacted by
CWFE efforts so far.

Our new operating

model focuses on
the sustainability
and scalability of our
organization.

2014 marked a 98%

increase in donations
with 99% capital
investment growth.

PAGE 01

PAGE 15

PAGE 19

PART ONE:
Organizational Overview & External Environment

MISSION

VALUES

FOCUS AREA

To provide access to clean and

affordable water in schools
located in developing nations

Sustainability

We focus on water supply

because many developing
nations face a water crisis. It
is estimated that more than
750 million people lack access
to safe drinking water around
the world. According to the
World Economic Forum, the
water crisis is the #1 global
risk based on impact to society
(as a measure of devastation),
and the #8 global risk based on
likelihood.2

Excellence
Transparancey
Leadership
Teamwork

We focus on servicing schools

because children cannot study
effectively without access
to clean water and sanitary
conditions. By helping to
make schools safer and more
conducive to learning, we
maximize our impact on the
wider community.

LEGAL STRUCTURE

EMPLOYEE BASE

OPERATIONS

We are currently registered as

a 501(c)3 charity in the United
States. At the end of 2014 we
did not have other legal entities
incorporated in the USA or
abroad.

We had a network of over

50 contractors and one full
time paid employee at the
end of 2014. We deliberately
leverage high quality, vetted
contractors to install our water
and sanitation infrastructure.
Our management team and
Board of Directors served in a
volunteer capacity throughout
the year.

CWFE has recently chosen to

focus its intervention efforts
in Nigeria and Ghana for three
reasons:
A focused deployment region
allows us to work on scaling
efforts without being spread
too thinly across the ground;
Ghana offers a relatively
stable operating environment
from a political and economic
standpoint;
W e h a v e e x i s t i n g
relationships in Nigeria
that make it easier for us
to deploy our water and
sanitation solution.
In the countries where we
work, the need for clean water
and sanitation is so high
that traditional charities and
existing utilities cannot hope
to fully address demand in the
foreseeable future.

OUR PAST PROJECTS

23

Sanitation Projects

Nigeria

Country

Water
Projects

Sanitation
Projects

Interventions Types
Utilized

Lives Impacted
(directly or indirectly)

Ghana

Borehole water systems

and septic toilets

660

Nigeria

10

Borehole water systems

and septic toilets

13,312

Nepal

Water filtration and piping

from fresh springs

8,784

Zimbabwe

10

Borehole water systems

and septic toilets

2,100

Total

23

24,856

Nepal

24, 856
Estimated Lives Impacted

8
Water Projects
Zimbabwe
Ghana

PART TWO:
Governance

Board of
Directors

Advisors

CEO

Stakeholder
Liason

Program
Officer

Marketing

Water
Agents

Contractors

Finance &
Sustainability

BOARD OF DIRECTORS

Christopher Ibru

Calisha Meyers

LOCATION: Nigeria

LOCATION: USA

KNOWLEDGE SET: Sustainability

& general management

KNOWLEDGE SET: Media

management & law

Teni Sagoe

Abbey Wemimo

LOCATION: Nigeria

LOCATION: USA

KNOWLEDGE SET:
Entrepreneurism & law

KNOWLEDGE SET: Business &

non-profit management

01

OPERATIONAL
MANAGEMENT
TEAM

03

DREW
YUKELSON

ABBEY
WEMIMO

02

NAMON
FREEMAN

CHIEF EXECUTIVE
OFFICER

STAKEHOLDER LIAISON
OFFICER

Abbey has gained valuable

experience interning with
Accenture and the Clinton
Global Initiative in New
York City. He has consulted
for EuropeAid on local
development and currently
works for Goldman Sachs.
Abbey is a graduate of the
Non-Profit Management
program at New York
Universitys Robert F. Wager
School of Public Service.

Namon is an Urban
Planner and Architect
whose passion lies at the
intersection of people and
planning. He is a graduate
of Hampton University,
with a Bachelor of Arts in
Spanish and a Master of
Architecture. Namon is
currently a student at New
York University, where he is
pursuing a Masters Degree
in Urban Planning.

04

EMANNUEL
AMOA

05

ROB
HENNING

MARKETING
OFFICER

PROGRAM
OFFICER

FINANCE &
SUSTAINABILITY OFFICER

Drew draws upon three

years of work experience in
market research at ESPN
to help formulate CWFEs
marketing strategy. He
holds a Bachelor of Science
degree in management and
marketing from Penn State
University, and is currently
enrolled in a masters
degree at NYUs Wagner
School of Public Service.

Emmanuel is a development
oriented professional with
a passion for community
engagement. He has worked
with several NGOs in Ghana.
Emmanuel holds a degree
in Integrated Development
Studies, and is currently
undertaking his masters
degree at the Institute of
Local Government Studies
in Environmental Policy and
Management.

Rob is a focused and flexible

business professional
with a global outlook.
He is a Certified Public
A cco u n t a n t , a n d h a s
worked internationally for
PwC. Rob is a graduate of
Harvards Sustainability
and Environmental
Management Program,
and is passionate about
business models that
p ro m o t e s u s t a i n a b l e
development.

A STRUCTURE THAT SUPPORTS

LONG TERM IMPACT
CWFES CURRENT STRUCTURE EXHIBITS THREE NOTABLE FEATURES
THAT HELP GENERATE LONG TERM IMPACT.

Independent
advisors who liaise
with the CEO
Allows for access
to specialized
expertise on an asneeded basis

Directors in Africa
and the USA
Allows for diverse
perspectives at the
BOD level
Allows for multiple
fund raising
networks on two
continents

Employee and
volunteer team
that works
remotely
Allows for a low
overhead base
Allows for flexibility
and promotes
the use of cost
effective IT

PART THREE:
Operating Model

WHAT WE KNOW ABOUT SUSTAINABLE WATER DELIVERY

The Safe Water Network, in conjunction with the Conrad Hilton
Foundation, has identified six requirements for sustainable water services.3

Consumer engagement

System technologies

Local capacity

Policy environment

A culture of paying for clean, safe water needs to be established.

Improved access, clear messaging, and incentives are required.

Groundwater is often safer than surface water.

Limited mechanization systems, modular slow-sand filtration,
and membrane filtration show significant potential to serve the poor.
System oversight and technical servicing are essential.
Educating and incentivizing locals to maintain systems is vital.

State and private sector parties need clearly defined roles.

Service vacuums must be identified and addressed with community input.

Economics

Systems must serve large enough constituencies to be cost effective.

Low cost systems must be installed and maintained over time.

Financing

Well structured micro-financing facilities are needed to help

communities take an ownership interest in their collective water assets.

Addressing all six requirements is a challenge for any organization, especially one with resource
constraints. However, at CWFE we recognize that challenges can make us stronger and more
resourceful if we are prepared to evolve. In 2014 we adjusted our operating model in an
effort to address as many of the points above as possible. Our new intervention approach:
Engages with students and parents as paying consumers, not aid beneficiaries.

Utilizes low cost technology to tap into clean ground water supplies.

Seeks to instill a sense of community ownership in water infrastructure.

Emphasizes the need to save for maintenance work over an extended period of time.

Leverages schools as community hubs to ensure suitable project economics.

Helps school communities meet the upfront financing costs of water and sanitation infrastructure.

Our Historical Operating Model

Collect donations
from the public to
invest in clean water
infrustructure

Target schools in
need of clean water
and sanitation
infrastructure

Install new water and

sanitation systems, or
rehabilitate old assets
on site

Our Emerging Operating Model

Target schools in
need of clean water
and sanitation
infrastructure

Install new water and

sanitation systems, or
rehabilitate old assets
on site

Collect fees from

students that are lower
than the existing water
prices they pay

Empower schools and

parents to maintain
water and sanitation
assets over time

Scale the model to

other schools in need
of water and sanitation
systems

PART FOUR:
Risk and Opportunities New Operating Model

Like every organization, CWFE faces operational risks that can undermine
its effectiveness and existence. The management team attempts
to mitigate these risks with suitable controls and oversight practices.

RISK

SEVERITY PROBABILITY

RESPONSE

Bad Debts

High

Moderate

Arbitration and school

record examination rights
are encapsulated in our
service contracts

Water Service
Interruptions

High

Moderate

A maintenance fund is in
place to pay for repairs

Boreholes
Running Dry

High

Moderate

Sustainability reseach is
conducted prior to drilling

Boreholes Being
Contaminated

Moderate

Low

Experienced contractors
are hired for drilling

Low

Tailored internal controls

are used to prevent
misappropriation

Theft of Financial
Resources

Moderate

Our most prominent opportunities and associated responses are noted below.
OPPORTUNITY

Partnerships with
private water
charities

Partnership with
government
agencies

Partnerships with
microfinancing
organizations

Securing foundation
and government
grants

IMPACT
PROBABILITY
POTENTIAL

High

High

High

Moderate

RESPONSE

Moderate

We are levereging contacts

at CGI to build partnership
opportunities with likeminded NGOs

Moderate

We are exploring project

financing options with
government ministries in
Ghana and Nigeria

Moderate

We will approach microfinancing organizations in

2015 with the goal of
securing funding streams
that can help us scale faster

Low

We periodically apply for

grants from USAID and
private foundations in the
hopes of securing
additional capital

PART FIVE:
Strategy and Resource Allocation

Like most organizations, CWFE must compete for resources and manage its cost base in order to survive in
the long run and maximize its impact. The competitive forces that we are subject to are summarized below:
FORCE

RATING

Threat of new
entrants

Moderate

Customer
bargaining
power

Threat of
substitutes

COMMENTS
Entrants with high capital reserves and cheaper infrastructure costs could pose
a serious threat to CWFE. These entities may emerge over time as Africa
continues to develop and attracts assistance from major countries such as
China.

Low

The attractive price point for water that is offered by CWFE gives parents and
teachers little incentive to bargain aggressively for price concessions. There is
also a high customer switching cost to potential new entrants.

Moderate

There are multiple substitutes for filtered borehole water, including canned
soda, bottled water and boxed fruit juice. However, these products are typically
more expensive than the solution on offer by CWFE, and therefore less
accessible to developing communities.

Supplier
bargaining
power

Low

Competetive
rivalry in water
service market

Low

CWFE utilizes the services of independent contractors to drill its boreholes and
install its sanitation equipment. CWFE uses the prospect of repeat business to
counteract unreasonable pricing moves made by its contractor partners.

Several charities have operations in Ghana and Nigeria. However, none have
sufficient resources to fully address the WASH problems confronted by
students and schools in these countries.

Commercial suppliers of water sachets and bottled water also operate in Ghana
and Nigeria. It is possible that CWFEs presence will prompt price cutting by
these entities. That said, CWFEs narrow focus on schools may be viewed as
non-threatening by existing market players.

WHERE WE WANT TO BE BY 2018

Financially
sustainable
operations
in Ghana and
Nigeria

32 full
time staff
members in
Africa

Annual
revenues of
over USD 7
Million

Over 500,000
student lives
impacted for
the better

HOW WE PLAN TO GET THERE

Competitive
pricing
for our
customers
relative to
existing
water and
sanitation
service
providers

Formation
of working
alliances
with microfinancing
entities as a
way to tap
into capital
markets

Greenlighting of
projects
in stable
countries
that are
reform
minded

Adherence
to an
investing
framework
that
requires
an average
payback
period of
less than 3
years

Periodic
alignment
against
identified
best
practices in
the social
venture
space

PART SIX:
Performance Scorecard

99%

Capital Investment
Growth

1,410
Students Access
Clean Water &
Sanitation

2014 was a pivotal year

for our operations. We secured
partnerships with three out of ten schools
we approached. We drilled three boreholes and
installed 18 toilet facilities in three schools situated in
Ghana, Nigeria and Zimbabwe. Our infrastructure provided
1,410 students with access to clean water and sanitation
infrastructure.

2014 was our best year ever from a fund raising perspective.
We raised 98% more than we did in 2013. We invested 86% of
our total revenue in infrastructure investment and operations.

98%

In 2014 we installed our first revenue generating assets at

Mummys Preparatory School in Ghana. This project was
completed as part of a CGI Commitment to Action.
We expect additional revenues of $1,500 to
be received from the project in 2015.

30%

School Partnerships
Created

86%

Revenue Invested
in Infrastructure &
Operations

Donation
Growth

Key Performance
Indicator Operational

2014

2013

2012

Cumulative
To Date

Number of schools that

enter into partnerships
with CWFE

Percentage of schools
approached by CWFE
that enter into a
partnership with the
organization

30%

50%

50%

40%

Number of water wells

bored

Number of sanitation
devices installed

18

23

Number of students
who have directly gained
access to clean water
and sanitation assets

1,410

2,000

1,600

5,010

Estimated number of
people directly and
indirectly impacted by
CWFE

6,995

9,923

7,938

24,856

Estimated liters of clean

water provided

2,066,400

1,248,000

384,000

3,698,400

Estimated number of
non-biodegradable
containers avoided

3,099,600

1,872,000

576,000

5,547,600

Water revenue

$364

$364

Funds raised through

donations

$25,209

$12,747

$5,201

$43,157

Year over year growth in

donations

98%

145%

N/A

Capital invested in
infrastructure and
operations

$21,566

$10,828

$6,415

$38,809

Year over year growth in

capital invested

99%

69%

N/A

Net surplus

$3,643

$1,919

($1,214)

$4,348

Cash outflows as a % of
cash inflows

86%

85%

123%

90%

A SPECIAL THANK YOU

The following individuals helped to make 2014 a successful year:

Charles Downs
Management Advisors

John Gershman
Paul Smoke
Scott Taitel
Clinton Global Initiative University
Patrick Smalley

Donors

Wachtell Lipton Rosen & Katz

New York University
Olumide Ajayi
Ellen Schall
John Boucha

Current Team Members

Tashi Gurung
Nqobile Chitimbire

Definitions and Impact Measurement Methodology

Direct impact: The total number of students in partner schools who gain
access to clean water and sanitation as a result of our investment actions.
We obtain these metrics by examining school rolls and confirming student
populations with school principals.
Direct and indirect impact: The total number of people directly and indirectly impacted by CWFEs projects. We use the following formula to
calculate our impact in each country we have projects in:
Number of students directly impacted X average household size in the country
Conceptually, this formula recognizes the fact that clean water and sanitation provided to a student positively impacts their immediate family unit.
This positive impact is due to long term savings in water procurement
costs and healthcare costs.
The following average household sizes are used in our computations:

Country

Average Household Size

Data Source

Ghana

4.4

Ghana Statistical Service 2010

Nigeria

5.2

Nigeria National Bureau of

Statistics - 2012

Nepal

4.9

Nepal Central Bureau of

Statistics - 2012

Zimbabwe

4.2

Zimbabwe National
Statistical Agency - 2012

Estimated liters of clean water provided: We calculate this figure on an annual basis using
the following formula:
(Cumulative number of students impacted by projects completed in prior years X 240 school days
per year X 2 liters of water per day)
PLUS
(Number of students impacted by projects completed in the current annual report year X 120
school days in the year under review X 2 liters of water per day)
120 school days are used as an input for the annual report year to account for the fact that
CWFEs newest projects are not operational for the full year under review.
We assume that on school days, each child will consume their recommended daily
allowance of water from the assets we have installed.
Estimated number of non-biodegradable containers avoided: We calculate this figure on an
annual basis using the following formula:
(Cumulative number of students impacted by projects completed in prior years X 240 school days
per year X 3 containers per day)
PLUS
(Number of students impacted by projects completed in the current annual report year X 120
school days in the year under review X 3 containers per day)
120 school days are used as an input for the annual report year to account for the fact that
CWFEs newest projects are not operational for the full year under review.
We assume that prior to the installation of our infrastructure solution, each student discards 3 liquid containers per school day. These containers may be plastic bottles, soda
cans or plastic water sachets.
Reference
1

The International Integrated Reporting Council (n.d.). The Home of Integrated Reporting.

World Economic Forum (2015).Global Risks 2015 Report.

The Safe Water Network (2013). Ghana Market Assessment 2013.

CONTACTS
CLEAN WATER FOR EVERYONE

WWW.CWFE.ORG