ANNUAL

REPORT 2015

WWW.CWFE.ORG

ANNUAL REPORT
2015

CONTENT

01 - A Message from the CEO

04 - Performance Scorecard
06- Part1: Organizational Overview & External Environment
08 - Our Past Projects
10 - Part 2: Governance
14 - Part 3: Operating Model
18 - Part 4: Risk and Opportunities
20 - Part 5: Strategy and Resource Allocation
22 - Part 6: Financial Statements
24 - A Special Thank You
25 - Definitions and Impact Measurement Methodology

A MESSAGE FROM THE CEO

Dear Friends and Supporters
Noted American author Napoleon Hill once stated that: Strength and growth come only through continuous
effort and struggle. I could not agree more! 2015 was a year of growth for Clean Water for Everyone (CWFE),
but the process was not easy, and we still have a long way to go before we achieve our vision of universal
access to clean water for school children in the developing world.
Our continued success depends upon unwavering adherence to generating positive social, economic and
environmental impacts for our stakeholders. We are confident that if we serve our stakeholders well and
comply with the letter of the law, our own fortunes will prosper.
Our operational highlights for 2015 are as follows:
1. CWFE transitioned away from its charity roots towards a debt finance social enterprise model that requires
schools and private sector customers to cover the cost of our infrastructure outlays over an extended
period of time. This revised approach to generating impact will allow CWFE to be more sustainable: at
the same time it helps foster a sense of community ownership in the assets we install. Seven projects in
Ghana were implemented using this new methodology.
2. The Board of Directors successfully hosted a gala in Nigeria that raised over $20,000 for the organizations
work. Private impact investors also invested in our work during the course of the year.
3. CWFE successfully registered a legal entity in Ghana that will serve as the corporate shell for future
development work carried out in West Africa.
4. We participated in multiple conversations with USAID regarding a possible venture capital investment in
excess of $150,000. We are hopeful that USAID will become a funding partner in 2016.
5. In May, our 2014 Clinton Global Initiative University Commitment to Action was recognized as an
exemplary model for addressing critical WASH challenges in the developing world.
I am profoundly grateful to CWFEs supporters and team members, and I am excited about the journey that
lies ahead.
Sincerely,

Abbey Wemimo
CWFE, Chief Executive Officer

2015

ANNUAL REPORT HIGHLIGHTS

PERFORMANCE
SCORE CARD

OUR PAST
PROJECTS

EMERGING
OPERATING MODEL

We successfully
installed seven new
cash-flowing water
projects in Ghana.

An estimated 32,398
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.

PAGE 04

PAGE 08

PAGE 14

CWFE Through the Years

Estimated Liters of Clean Water Provided (in thousands)
2012

Estimated Number of Non-biodegradable

Bottles Avoided (in thousands)
3,761
3,099

384
1,248

2013

1,872
576

2,066

2014

2,507

2015

2012

2013

2014

2015

Growth in 2015
11,854

Number of people directly

and indirectly impacted

Number of new water

wells bored by CWFE

Number of new school

partnerships with CWFE

1,714

Number of students that

directly gained access to
clean water

30%

Percentage of schools
approached entered into
partnerships

Performance Scorecard

Key Performance Indicator

Operational

2015*

2014

2013

2012

Cumulative
To Date

Number of schools that enter into

partnerships with CWFE

14

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

30%

30%

50%

50%

35%

Number of water wells bored

15

Number of sanitation devices

installed

18

23

Number of students who have

directly gained access to clean
water and sanitation assets

1,714

1,410

2,000

1,600

6,724

Estimated liters of clean water

provided

2,507,640

2,066,400

1,248,000

384,000

6,206,040

Estimated number of
non-biodegradable containers
avoided

3,761,460

3,099,600

1,872,000

576,000

9,309,060

* 2012 2014 projects leverages our historical operating model. One project from 2014 and all projects in 2015 leverages our emerging operating model.

PART ONE:
Organizational Overview & External
Environment

MISSION

OUR VALUES

FOCUS AREA

To provide access to clean and

affordable water in schools
located in developing nations.

Sustainability We endeavor
to meet the needs of today
without compromising the
ability of future generations to
meet their needs.

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.1

Transparency Integrity and

honesty are at the heart of our
operations.
Teamwork - We encourage
teamwork in everything we do.
Leadership We constantly
strive to anticipate the changing
needs of our stakeholders
w h i l s t d eve l o p i n g a g i l e
products and services to meet
those needs.
Excellence Exemplary
outcomes arise from our
commitment to our values.

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. In 2015 we successfully
registered a legal commercial
entity in Ghana that will serve
as the corporate shell for future
development work in West
Africa.

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

Nigeria

23

Sanitation
Projects

Country

Water
Projects

Sanitation
Projects

Interventions Types
Utilized

Lives Impacted
(directly or indirectly)

Ghana

Borehole water systems

and septic toilets

8,202

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

15

23

32,398

Nepal

Ghana

32,398

24, 856
Estimated Lives
Impacted

Estimated Lives Impacted

Zimbabwe

8
Water Projects

15

Zimbabwe

Water Projects

Ghana

Nepal

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 working with
Accenture, Goldman Sachs
and the Clinton Global
Initiative in New York City.
He has also consulted
for EuropeAid on local
development matters.
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.2

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 up front financing costs of water and sanitation.

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 payments from

schools that cover
investment outlays

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

We pride ourselves on pioneering this model and hope it

becomes standard in the industry.

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

Theft of Financial
Resources

Moderate

Low

Access to bank accounts is

restricted to a small group
of senior officers

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

Partnerships with
private water
charities

Partnership with
government
agencies

Partnerships with
microfinancing
organizations

Securing foundation
and government
grants

Impact
Potential

High

High

High

Moderate

Probability

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

Kiva has expressed an

interest in working with
CWFE once our organizational balance sheet has an
asset balance larger than
$100,000.

Low

We have participated in
multiple conversations
with USAID regarding a
possible venture capital
investment in excess of
$150,000. We are hopeful
that USAID will become a
funding partner in 2016.

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

Supplier
bargaining power

Competitive rivalry
in the water service
market

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.

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.

Low

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 2019

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:
Financial Statements
CWFE Ghana & CWFE USA

Ghana Operations - 2015

Figures expressed in GHS
Prepared on a cash basis

Repayment of debt obligations by customers

27,640

Investment in asset installations

(80,940)

Expenses
Flights

(6,391)

Legal & Professional Fees

(2,280)

Local Travel Costs

(4,180)

Office Expenses
Wage Costs

(456)
(13,999)
(27,306)

Surplus / (deficit) from operations

(80,606)

Ghana Balance Sheet as of 31 December 2015

Figures expressed in GHS
Prepared on a cash basis
Accounts Receivable

103,492

Cash

14,155

TOTAL ASSETS

117,647

Future Income

82,892

Equity Contributions from CWFE USA

115,361

Surplus / (deficit) from operations

(80,606)

Net Equity

34,755

TOTAL EQUITY AND LIABILITIES

117,647

USA Operations - 2015

Figures expressed in USD
Prepared on a cash basis

2015

2014 Restated

2013

Revenue - Donations

29,686

24,838

12,747

Revenue - Nigerian Gala

19,800

Total Revenue

49,486

24,838

12,747

(6,300)

(8,818)

(8,550)

(4,196)

(5,435)

(240)

Travel

(413)

(810)

(99)

Other

(1,980)

(131)

(1,939)

Accounts Receivable

(6,589)

(6,376)

(2,278)

$ 36,597

$ 9,644

$ 1,920

Investment in asset installations

Direct project outlays
Expenses
Fundraising & Marketing

Surplus / (deficit) from operations

USA Balance Sheet as of 31 December 2015

Figures expressed in USD

Prepared on a cash basis

Cash On Hand
Paypal

1,098

US Bank

594

Nigeria

19,800
21,492

Equity investment in CWFE Ghana

Cash transfer

17,400

Accounts Receivable transfer

6,000

Expense coverage

7,186
30,586

TOTAL ASSETS

$ 52,078

TOTAL EQUITY AND LIABILITIES

$ 52,078

A SPECIAL THANK YOU

The following individuals helped to make 2015 a successful year:

Charles Downs
Management Advisors

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

Donors

New York University

Olumide Ajayi
Ellen Schall
Rob Henning
Drew Yukelson

Team Members

John Boucha
Nqobile Chitimbire
Emmanuel Amoa

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)
30 school days are used as an input for the annual report year to account for the fact that CWFEs 2015 projects were all installed in the
final quarter of the year.
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 30 school days in the year under review X 3 containers
per day)
30 school days are used as an input for the annual report year to account for the fact that CWFEs 2015 projects were all installed in the
final quarter of the year.
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

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

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

CWFE

WWW.CWFE.ORG