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Sue Dorsey, chief financial officer at Water For People

Editor’s Note: This post was authored by Sue Dorsey, chief financial officer at Water For People. In the post, Sue identifies several issues with current funding mechanisms in the social sector and proposes solutions that will support rather than hamper organizations in building resilience and realizing bold visions. The post originally appeared on Water For People’s blog.

In a sea of social entrepreneurs, I am a rather unique voice. As the CFO of Water For People, I am part of a team that makes our vision of ensuring Everyone around the world has access to safe water and sanitation, Forever, a reality. Our Everyone, Forever initiative spans 30 districts across four continents reaching more than four million people, and we are proving that ending water and sanitation poverty is possible in our lifetime. Behind every bold vision is a “reality team” working to bring it to life. Being a member of that team is a huge responsibility and incredibly inspiring.

I believe that a critical component to making a world free of social, cultural, political, and economic barriers a reality is building strong nonprofit organizations, businesses, and government institutions. Our vision is the spark, and resilient organizations with appropriate funding mechanisms and a regulated environment is the engine that will get us there. But as it stands, current practices in the nonprofit sector won’t get us there. Here’s why, and what needs to change:

1. Funders offer small short-term commitments forcing organizations to create short-term solutions for long-term challenges.

#ChangeThat: Funding streams need to adjust their timelines to fit long-term solutions and outcomes.

2. Nonprofits struggle with success indicators, putting too much focus on overhead ratios that are easy to calculate but also easy to manipulate, leading to misdirected philanthropic investments.

#ChangeThat: Making outcome-based grants requires nonprofits to focus on long-term sustainable outcomes.

3. Funders generally resist financing capacity-building, and only focus on tangible projects. 

#ChangeThat: Financing monitoring and evaluation, talent acquisition and IT investments would actually increase efficiencies and reduce overhead.

4. Out of control donor restrictions lead to soaring overhead costs and trumps appropriate and necessary programmatic changes.

#ChangeThat: What if funding under $1M or less than five years could not legally be restricted under FASB rules?

5. Lack of public transparency for the true costs to run a nonprofit organization. 

#ChangeThat: What if we got rid of the functional allocation and asked NPOs to report on a full cost recovery basis on their 990, educating and sensitizing the public on the real costs to change the world?

6. Limited to no communication between donors and NPOs about organizational pain points.

#ChangeThat: Donors should ask and nonprofits should offer insight into what they need to succeed from a programmatic and operational standpoint.

There is an exciting opportunity to bring the reality teams from behind the curtain to be a voice for change in the nonprofit sector, by educating donors and effecting change in organizations. We have seen examples of this - InsideNGO has created a community of international development organizations to advocate for effective funding from USAID and other institutional funders. They are currently working on a database of information around the true costs of running an effective organization. And Dan Pallotta has been a strong voice on this issue for years. His TedTalk about the way we think about and execute charity has over three million views and growing, which shows there is an appetite to reinvent the nonprofit sector so we can actually change the world.

If you peek behind the curtain, you will find “reality teams” around the world poised to lead this change.

I see a nonprofit sector stepping up and making investments in data collection and analysis to allow for more data-driven decision-making. I see nonprofits sharing indicators and data across sectors to align us around a common set of benchmarks, providing a clearer picture of what success looks like and progress made towards that success. Greater transparency and accountability will build trust and collaboration with the funding community, and this will lead donors to reduce burdensome and unnecessary restrictions that only serve to increase overhead and reduce programmatic outcomes. I see government regulation pulling back from functional allocation to ensure nonprofits show the public a true picture of what it costs to run an effective, sustainable philanthropic organization.

Reaching our vision where Everyone has access to safe water and sanitation Forever is something we take very seriously. Anything less would just not be good enough.

One Drop and Water For People have announced a strategic partnership to end water and sanitation poverty in India's Sheohar district.

To that end, Water For People and One Drop will invest $5.8 million and $5 million, respectively, over five years to increase the scale and impact of their work. Those efforts, which are expected to reach more than 650,000 people by 2018, will leverage One Drop's expertise in sustainable program delivery with Water For People's local connections and experience in providing market-based solutions, comprehensive hygiene education, and district-wide water coverage.

"We share the belief that sustainability and economic empowerment are the foundation of international development," said One Drop CEO Catherine B. Bachand. "This partnership will demonstrate ways the water sector can collaborate to increase the return on investment of funding and, ultimately, achieve the mutual goal of delivering sustainable solutions at scale."

"ONE DROP and Water for People Join Forces to Develop Sustainable Programming to End Water and Sanitation Poverty." One Drop Press Release 02/27/2014. 

Editor's Note: This guest blog was authored by Khanh Russo, public benefit investment manager of the Critical Human Needs portfolio at Cisco. Khanh discusses the importance of using data to inform decision-making and increase impact by offering insights into how a smartphone-based system was brought to scale and why Cisco has supported its development.

Data isn’t sexy. It doesn’t have the emotional appeal of water flowing from a hand pump for the first time into a child’s waiting hands. Nor does it have the “going viral” potential of Matt Damon refusing to use the toilet for a year.

But data is a valuable commodity for the organizations working to deliver clean water and sanitation to people who lack those basic resources. Having the right data can drive smarter decision-making and make water and sanitation projects more efficient, more effective, and more appealing to funders.

But in parts of the world where clean water is the scarcest, data is often the hardest to gather. Internet connections can be limited or nonexistent in remote parts of Africa, Asia, and Latin America. This makes it difficult to gather data that can be analyzed and shared in a timely way. By the time you’ve gone home, entered your notes into a spreadsheet, compared it to other reports, and shared your findings with colleagues, the situation in the Malawian village you visited might have changed significantly.

Village in Malawi. Credit: Water For People

Village in Malawi. Credit: Water For People

Enter tools like Field Level Operations Watch (FLOW), a smartphone-based system designed to collect, manage, analyze, and display geographically-referenced data. FLOW users create surveys that can include text, photos, video, and GPS coordinates. They can use smartphones to store hundreds of surveys and collect data even where there is no cellular connection. The data automatically gets transmitted once the user has a mobile connection.

Water For People has collected nearly 40,000 surveys in 10 countries through the tool since 2010. FLOW supports data-driven decision-making and visual reporting, which in turn creates transparency and fosters confidence among funders. And more funding ultimately means more people will have access to clean water.  

Leveraging funding from Cisco, Water For People began developing FLOW in 2010 to revolutionize its monitoring efforts. In 2012, Water For People partnered with Akvo Foundation to develop FLOW into an open source tool that could be adapted for other uses by other WASH organizations. It has already been used by 26 organizations in 20 countries.

A couple of things were key for taking FLOW to scale. First, Akvo focused on stabilizing the system and improving its usability, which allowed organizations to more quickly use the data to help improve their approach. Second, Akvo created regional hubs for support and training, which allowed them to improve customer service and response times at a lower cost.

Akvo had to overcome a major challenge to scale: There was a huge demand for the platform, but it was not yet robust enough to serve so many organizations with diverse needs. The Akvo team had to invest a lot of time in reframing expectations while also hiring staff to quickly improve the platform’s usability.

FLOW, an open source tool developed by Water for People and Akvo to collect and manage WASH data

FLOW, an open source tool developed by Water for People and Akvo to collect and manage WASH data

But despite the challenges, Akvo has a clear vision for FLOW that Cisco is proud to support: Giving governments and organizations an open, easy-to-use, affordable way to collect and understand data.

Keri Kugler of Water For People described how FLOW has significantly changed the way her organization monitors water projects and tracks progress in the Huffington Post.

“Using the survey tools, we speak with community members, find out if water service is reliable, whether someone can fix problems, and better understand ongoing issues,” Kugler wrote. “This kind of monitoring is a cornerstone to sustainable water solutions across the developing world.”

Other data-driven tools that Cisco supports include the Blue Planet Network technology platform and its SMS-based reporting tool. Read more about Cisco’s funding strategy for Critical Human Needs, and let us know how you’ve used WASH data to inform your work in the comments below.

Inter Press Service News Agency

Editor’s Note: This guest post was authored by Thalif Deen for the Inter Press Service (IPS) news agency. Thalif reports on the role of water and sanitation in the United Nation’s formulation of the new Sustainable Development Goals (SDGs) and differing insights into what’s needed to make WASH delivery sustainable. A version of this article originally appeared here.

Residents of Clara Town, a low-income neighborhood of Monrovia, Liberia, face sanitation challenges with the onset of the rainy season. Credit: Travis Lupick / IPS

Residents of Clara Town, a low-income neighborhood of Monrovia, Liberia, face sanitation challenges with the onset of the rainy season. Credit: Travis Lupick / IPS

When the General Assembly unanimously adopted the Millennium Development Goals (MDGs) back in 2000, water and sanitation were reduced to a subtext — never a stand-alone goal compared with poverty and hunger alleviation.

Now, as the United Nations begins the process of formulating a new set of Sustainable Development Goals (SDGs) for its post-2015 agenda, there is a campaign to underscore the importance of water and sanitation, so that the world body will get it right the second time around.

Ambassador Csaba Korosi of Hungary, whose government will host an international water summit in the capital of Budapest in October, says, “Sustainable development goals for water should be designed in order to avoid the looming global water crisis.”

Speaking to reporters last week, Hungary’s Permanent Representative to the United Nations said water resources have remained virtually unchanged for nearly 1,000 years.

“But the number of users have since increased by about 8,000 times,” he said.

With global food production projected to increase 80 percent by 2030 — and with 70 percent of water consumption flowing into the agricultural sector — Korosi said 2.5 billion people will very soon live in areas of water scarcity.

Addressing the Special Thematic Session of the General Assembly on Water and Disasters last week, Deputy Secretary-General Jan Eliasson was blunt: “We must address the global disgrace of thousands of people who die every day in silent emergencies caused by dirty water and poor sanitation.”

The theme of the Budapest water summit, scheduled for early October, will be “The Role of Water and Sanitation in the Global Sustainable Development Agenda.”

The summit will be preceded by a High-Level International Conference on Water Cooperation in Tajikistan in August and World Water Week sponsored by the Stockholm International Water Institute (SIWI) in Sweden in September, plus several regional summits and conferences in Asia, Africa and Latin America.

The meetings take place at a time when the General Assembly has declared 2013 the International Year of Water Cooperation — and even as the United Nations commemorated World Water Day on March 22.

Torgny Holmgren, SIWI’s executive director, told IPS that in a survey of U.N. member states on priority areas for post-2015 goals, food, water and energy were “a distinct top trio”.

For a second year in a row, he said, the water supply crisis was also among the top three global risks in the yearly survey by World Economic Forum in Switzerland.

“We are also seeing how water issues are being prioritised by actors outside of the traditional water community, most significantly from the food and energy sectors,” said Holmgren, a former ambassador and head of the Department of Development Policy at the Swedish Ministry of Foreign Affairs.

Amidst all this, he said, there is significant talking and thinking going on to develop new ambitions that will support the movement towards a sustainable and desirable world for all the so-called post-2015 development agenda.

“I am optimistic that the newfound awareness about the importance of water will be converted into far-reaching goals and targets on water as a resource, as a right and as a service,” said Holmgren.

John Sauer, head of external relations at Water For People, told IPS the United Nations took an important step to make water and sanitation a human right through a General Assembly resolution (64/292) in 2010.

Despite this effort, he said, its work to ensure lasting and affordable water and sanitation service delivery must evolve and innovate to meet the immensity of this challenge.

“As the U.N. shifts attention to the post MDG goal of universal coverage, monitoring should shift to ongoing service delivery,” he said.

This is critical to prevent the large number of projects that presently fail, Sauer noted.

“This means looking beyond projects funded, and beneficiaries reached, and instead looking at systematic capacity building within government, civil society and the private sector institutions. This also means creating stronger partnerships,” he said.

“If the U.N. could better demonstrate their impact, for example, by using indicators to show capacity built, this would be progress in the right direction.”

Together with non-governmental organisations (NGOs), the U.N. must rise to the occasion and increase transparency to reveal the true impact of their operations, he added.

Asked about the role of international organisations in resolving the impending global water crisis, Richard Greenly, president of Water4, had a different take.

He told IPS that organisations like the U.N. will always have little to no effect on the growing crisis in water and sanitation.

“But it is not for lack of very good intentions or much effort,” he added. “The fact is, we as a civilisation cannot give or grant another country into prosperity and health.”

It has never worked in the history of the world and it will not ever work in the water and sanitation crisis, he added. Every developed country paid for their own water development by developing water businesses, he argued.

“Commerce is the way out of poverty and although the U.N. is well-meaning, sustainable water development must be put in the hands of local citizens to solve their own water issues.”

What these people desperately need from the U.N. is the opportunity to develop their own water resources, he added.

Rather than a 10,000 dollar “donated” borehole or even 10,000 donated boreholes, they need the opportunity to develop their own way out like non-profit organisation Water4, which gives people the opportunity to hand drill water wells as a business for one-tenth the cost of a mechanised rig.

“This will allow rapid sustainable gains in the world water crisis,” Greenly argued.

SIWI’s Holmgren told IPS, “I am also seeing clear indications of both the need for and the openness to new collaborations and ideas.”

He said the post-2015 goals are being discussed as inclusively as our electronic means of communication permits. “We do see more cooperation emerging between governments, the private sector, academia and civil society.”

He said there are even cases where common ground for collaboration for a more water-wise world is found between competitors.

“It is of course most fitting that all these efforts are emerging during the International Year of Water Cooperation, and we at SIWI look forward to contributing even further towards improved cooperation and more concrete outcomes through the World Water Week on the same theme in September in Stockholm,” he added.

Ned Breslin, CEO of Water For People

Editor’s Note: This is the first in our new “5 Questions for…” series, where we pose five questions to foundation, NGO, and thought leaders in the WASH sector. In this post, Water For People’s CEO, Ned Breslin, discusses FLOW, tariff systems, sensors, and more in response to our questions.   

If you are interested in participating in this series, send us an e-mail at: WASHfunders@foundationcenter.org.

1. What is the number one most critical issue facing the WASH sector today?

That, as a sector, if we continue to muddle through with small-scale projects, and with programs that have no chance of scale or replication, and if we continue complaining about a lack of finance and poor political will, we won’t solve the water and sanitation crisis. We need to have the courage of a comprehensive polio eradication-type campaign and movement. We are ready to make a bolder move. All investments in water and sanitation need to last, because we can no longer accept girls walking back to polluted water sources past broken handpumps and taps. It’s time we begin to think seriously about creative financial models to replace water and sanitation facilities over time. As a sector, we need to lead the world in issues of transparency with longer-term monitoring that helps us understand what works and why. We are ready for this leap, we just need to take it.   

2. Tell us about a collaboration or partnership your organization undertook and the lessons learned from that experience.

I am extremely excited about our new partnership with Akvo on the future development of FLOW. As many know, Water For People developed FLOW as a way to meet our commitment to 10 years post-implementation monitoring. FLOW is great but we were overwhelmed by the demand for FLOW by other agencies. So we decided Akvo will take this process forward. Through the process of creating a partnership, the thing I learned the most is that alignment around values, organizational culture, and vision is vital to a partnership moving forward. Challenges will emerge but we can always move forward if aligned with a bigger vision in mind.

3. How do you work with local communities to promote project ownership and sustainability?

We focus on payment and tariffs. The days of sweat equity alone being sufficient for ownership are gone, thankfully. The challenge is to develop tariff systems that finance operations and maintenance (O&M), and also contribute in part to the eventual replacement of these systems over time while ensuring that all have access to water regardless of economic capacity. But someone has to pay, and ownership and sustainability will be elusive unless we embrace the fact that payment matters. We can debate who pays all we want, but someone has to pay — someone actually has to own that responsibility. Water For People works very hard at this issue. It’s not easy but it’s vital to all real discussions on ownership and sustainability.

4. Tell us about an emerging technology or solution that excites you and that you think will make a big impact in the WASH sector over the next 5-10 years?

I love the potential of sensors in the water and sanitation sector. The ability to truly understand issues related to consumption patterns and, most importantly, functionality will be a big game changer. If sensors tell us when water systems are down, when they are repaired, and what is happening with water resources, we will be in a much stronger position to understand and respond to sustainability challenges. The one group I am watching now is SWEETLab — really good work there!

5. There are lots of great WASH resources, ranging from striking data visualizations to good, old-fashioned reports. What’s caught your eye lately (besides WASHfunders, of course)?  

The one resource I am inspired by is A Child's Right program called “Proving It” (discussed in detail in this WASHfunders post). It’s early stages but it is a really nice attempt to track actual users over time. The web page will show you what is working and highlight when a system is down (leading to a reduction in the number of beneficiaries). This is a big step and should be supported when talking about aid transparency and all. 

We are launching something called “Re-Imagining Reporting” in August at Stockholm Water Week. May be of interest for people as well. To follow the progress, keep track of our tweets via @NedBreslin and @waterforpeople.

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