Executive Director’s Report to the Board of Directors

January 2006

Overview

• Development & Communications

• Operations

• International Programs

• Staffing

• Q & A after each section

Development & Communications Action Plan

Environmental AnalysisInternal Strengths:

• Dedicated staff with historical knowledge.

• Long-term donor database.

• Board members willing to network.

• Commitment to enhance fundraising.

• Capacity through the Agora grant.

• Strong website.

• Growing e-community.

• Successful Triangle Water for Life event.

Environmental Analysis:Internal Weaknesses

• Insufficient program funding.

• Understaffed relative to FR goals.

• Inconsistent communication with donors.

• Donor database limitations.

• Vulnerable “institutional memory.”

Environmental Analysis:External Strengths

• Growing realization of the importance of water.

• Bandwagon effect of major grant support from the Dell Foundation and the Agora Foundation.

• New donor interest in WaterCredit program.

• Competitive advantage of WPI’s successful track record.

Environmental Analysis:External Weaknesses

• WPI is not well known.

• WPI is small compared to potential competitors.

• The non-profit marketplace is fiercely competitive.

• Prime news outlets are also competitive and the sheer number is daunting.

Action Steps:Fundraising

• Enhance the major gift program.

• From our database and board contact network, identify top donor prospect list to build and/or maintain relationships with.

Action Steps:Communications & Marketing

• Assess current publications.

• Develop a preliminary marketing plan.

• Establish a tentative timeline for mailings.

• Continue to build our e-community.

• Increase the number and prominence of media placements.

Action Steps:Internal

• Define current staff roles and identify additional staffing needs.

• Develop a scope of service agreement with an outside public relations agency.

• Evaluate the development infrastructure, including a need/benefits analysis for upgrading the donor database.

• Develop metrics to measure the effectiveness of the program.

Board Role:Fundraising

• Support WPI through your own giving.

• Promote WPI in your own circle of contacts.

• Share leads on donor prospects.

• Ask for gifts, when appropriate, or help open the door for others to ask.

Staff Role:Board-Related Fundraising

• Contribute to WPI through our own giving.

• Provide individually-tailored support to the board in their fundraising efforts.

• Ask for gifts, when appropriate.

• Treat donors with the utmost respect and TLC.

• Do our homework and keep accurate records.

Looking Beyond:A Glimpse into the Future

• Build a comprehensive development program.• Grow the base of support through direct mail,

media placements and an enhanced web presence.

• Evaluate the role of events in the overall development program.

• Promote planned giving more actively, including marketing to estate planners.

• Develop an internal/external staffing plan.

Operations

Financial Overview

• Financial Management Timelines– Monthly/Quarterly/Annual Reports

• Balance Sheet• Statement of Activities: Budget vs. Actual (Linear

and projected)• Statement of Functional Expenses – tracks

expenditures by division (actual vs. projected)– International Programs (includes outreach)– Administration– Fundraising

Financial Overview

• Audit Results– Immediate implementation of p&p

recommendations

– Seattle Spring WFL• RSVPs to Seattle PO Box• Access to funds• Deposit Procedures• Coordination with WFP• Next steps

Financial Overview

• Annual Budget Process• Begins in May• Dovetails with Strategic Plan• Each department predicts annual expenses

based on FY goals (June)• Departments submit budget requests to

Operations & Executive Director (July)• Draft budget presented to Board (August)• Budget revised as needed, presented for final

Board approval (September)

Human Resources

• HR Consultant Darlene Horgan

• Overhaul of Employee Manual– Evaluation of state/federal compliance requirements – Other policies – flex time, IT use, etc.– Completion late February

• Position Classification and Compensation Study – Evaluate for competitive rates – Completion late March

• Implementation of Performance Evaluation System – Completion late February

Other Operations

• WaterCredit InitiativeTM

• Charitable Solicitations

• Contract review

• Other Policies and Procedures– Board – Financial– Personnel and Benefits

International Programs

Overview

• Project → Program

• Monitoring & Evaluation

• Recent Travel– December: India, Bangladesh, Kenya

• Staff interviewing, hiring and orientation

– January: Kenya• Staff hiring & orientation• Engaging Wynnette• Kenya Schools Initiative with Coke/GWC

WaterCredit India

• Institutional Development Support (IDS)– Gramalaya

• Piloting of Loans– Basix– Gramalaya

• Grant → Credit graduation

• ECB Challenges

WaterCredit Kenya

• Institutional Develop-ment Support (IDS)– Provided by K-Rep

Development Agency– Gwako & Sana

• Piloting of Loans– Gwako– Sana

• NGO Registration

Grant-driven Projects

• Bangladesh– DSK

• revolving loan continues in urban slums• Bridge grant

– VERC• Union approach $50k—key donors

– WaterCredit potential

Grant-driven Projects

• Ethiopia– New PO: Water Action– New project starting with REST– MWA funding potential

• India– Four new POs certified; two pending– Grant agreements pending (MSDF- $500k)– Gramalaya revolving loan projects—latrine

blitz

Grant-driven Projects

• Honduras– New

project starting

• Kenya– MWA/Coke

Project

Millennium Water Alliance (MWA)

• Members: WPI, CARE, CRS, WV, WFP, LW, LWI, Unicef

• Challenges of a start-up– Understaffed– Input from WPI

• Potential of Safe Water for the Poor Act

• Potential through Global Water Challenge– Kenya Schools Initiative

Potential Scale-up

• Gates Foundation– Scale, Innovation, Leverage– Want “proof” but are willing to pay for it

• MSDF– Teaming with WaterAid?

• Starbucks/Ethos– Site visit in March/April

• MWA/GWC

Staffing Update

• Development Director

• Finance Manager – Outsourcing approach not sufficient– Hired HR consultant Darlene Horgan 1/3– Began recruiting 1/5– Anticipate making an offer by end of January

Staffing Update

• Director of International Programs– Top candidate declined– Re-advertising began 1/10– Good candidates are emerging; 1st round of

interviews 1/25– Negotiating with Jenna Davis for

comprehensive M&E

Staffing Update

• Kenya Director– Patrick Alubbe, 2nd in command at PO SANA

• WPI India – Offer made to MFI expert – Additional water/sanitation expert anticipated

in Spring