2020 Water.org Annual Report

We are an international nonprofit organization that has positively transformed more than 33 million lives around the world–in partnership with people like you.

Table of Contents

Letter from CEO

05

Why Water 07 About Water.org 09 2020 Impact Map

11

Country Focus: India

13

Financial Report 15 Teamwork 19 Our Vision 21

Dear Friends and Supporters, Through your kind generosity and loyal support, we’ve reached more than 33 million people to date with access to safe water and the power it has to protect and save lives — thank you!

In a challenging year, we came together and remained committed to helping empower people living in poverty with safe water and sanitation at home. The COVID–19 pandemic impacted Water.org, our partners and collaborators in the countries where we work, and ultimately those living without access to safe water and sanitation at home. While our work slowed down in the early days of the pandemic, in July 2020 we started to increase impact. With your continued support, we reached more than 6.7 million people with access to safe water or sanitation in 2020, more than 4 million after the pandemic started. That’s 4 million more people who can now wash their hands, prevent the spread of disease, and better protect the health of their families.

Thank you for continuing to donate to Water.org as we work to empower millions more in need with safe water and sanitation. As we look ahead, we are hopeful for the future and the impact we will make together in 2021 and

“

Any society with the guarantee of safe water has a chance to realize its full potential.

beyond. We remain committed to continuing our work to empower people living in poverty with access to safe water and the health and hope that flow from it.

Sincerly,

Gary White CEO and Co-Founder Water.org | 2020 Annual Report 05

Why Water

WATER CONNECTS EVERY ASPECT OF LIFE Access to safe water can protect and save lives, just because it’s there. Access to safe water has the power to turn time spent into time saved, when it’s close and not hours away. For millions of women, children, and communities, access to safe water can turn problems into potential — unlocking education, economic opportunity and improved health.

HEALTH CRISIS Globally, 771 million people lack access to safe water and 1.7 billion people don’t have a toilet. Nearly 1 million people die each year from water, sanitation and hygiene–related diseases which could be reduced with access to safe water or sanitation. Lack of access to safe water also affects the physical well–being of women and children who have no choice but to carry heavy vessels long distances. As we face the COVID–19 pandemic, now more than ever access to safe water is critical to the health of families around the world.

EDUCATION

Safe drinking water is critical to the development

When children don’t have access to water at home, they

of a healthy child. It means kids won’t experience

are often responsible for collecting it for their families.

water–borne illnesses like typhoid. Diarrhea is one of the Sharing the burden with their mothers, children around top three leading causes of child death and this is often

the world spend 200 million hours each day collecting

triggered from consuming unclean water. Further, every

water. This takes time away from school. Likewise, poor

2 minutes a child dies from a water–borne disease.

sanitation keeps kids, especially girls, from being able to

Whether they are consuming contaminated water or

go to school. Today, one in three schools lacks access to

suffering from dehydration due to diarrhea, a lack

basic water and sanitation

of access to safe water is responsible.

A WOMEN’S CRISIS For women, the water crisis is personal. They are responsible for finding a resource their families need to survive – for drinking, cooking, sanitation and hygiene. They may stand in line and wait for water, they may walk long distances to collect water, or they may pay exorbitant amounts of money to secure water. In their efforts to get water for their families, they often face an impossible choice – certain death without water or possible death due to illness from dirty water.

Today, women around the world will spend a collective 200 million hours collecting water. In addition to time spent collecting water, millions may also spend significant amounts of time finding a place to go. This makes up an additional 266 million hours of time each day lost because they have no toilet at home.

Water.org | 2020 Annual Report 05 Water.org | 2020 Annual Report 07

About Water.org Water.org About WE BELIEVE IN WATER

Water.org is a global nonprofit organization working to bring water and sanitation to the world.

We want to make it safe, accessible, and cost–effective. We help people get access to safe water and sanitation through affordable financing, such as small loans. We give our everything every day to empower people in need with these life–changing resources – giving women hope, children chil- drenhealth healthand andfamilies familiesa abright brightfuture. future.

ACCESS TO WATER TURNS POVERTY INTO POSSIBILITY ACCESS TO WATER TURNS POVERTY INTO POSSIBILITY

Today 771 million people – 1 in 10 – lack access to safe water at home. And 1.7 billion – 1 in Today 771 million people – 1 in 10 – lack access to safe water at home. And 1.7 billion – 1 in 4 people – don’t have access to a toilet. The water crisis negatively impacts the health and 4 people – don’t have access to a toilet. The water crisis negatively impacts the health and livelihood of more than one–third of our global population. We exist to change this. For millions livelihood of more than one-third of our global population. We exist to change this. For millions of women, children, and communities, access to safe water can turn problems into potential – of women, children, and communities, access to safe water can turn problems into potential – unlocking education, economic opportunity and improved health. unlocking education, economic opportunity and improved health.

OUR APPROACH IS PROVEN AND POWERFUL OUR APPROACH IS PROVEN AND POWERFUL Expanding upon the success of WaterCredit, Water.org offers a portfolio of smart solutions that

Expanding upon the success of WaterCredit, Water.org offers a portfolio of smart solutions that break down the financial barriers between people living in poverty and access to safe water and break down the financial barriers between people living in poverty and access to safe water and sanitation. We work with and through partners to increase access to financing for those who sanitation. We work with and through partners to increase access to financing for those who need it most. This will help achieve safe water and sanitation for all. As we face the COVID–19 need it most. This will help achieve safe water and sanitation for all. As we face the COVID–19 pandemic, now more than ever access to safe water is critical to the health of families around pandemic, now more than ever access to safe water is critical to the health of families around the world. We play an important role in helping to meet this urgent need. the world. We play an important role in helping to meet this urgent need.

2020 at a glance

Water.org | 2020 Annual Report 09

In 2020, 6.7 million more people in twelve countries now have access to safe water or sanitation.

80,000 Brazil

2,000 Mexico

367,000 Peru

12,000 Ethiopia

1.8M

47,000

India

Uganda

233,000 Cambodia

540,000 Philippines

805,000 Indonesia

1.6M Kenya

1.2M 18,000

Bangladesh

Tanzania

Water.org | 2020 Annual Report 11

Country Focus: India INDIA’S WATER CRISIS With a population of 1.38 billion people, India is the second most populous country in the world.

More than 6% of this population lack access to safe water and about 15% of India’s population practices open defecation. A lack of household water connections and toilets contributes largely to water-borne illnesses, stunting, and death. In India and around the world, millions are navigating the COVID–19 pandemic with the addedchallenge of living without access to safe water. Now more than ever access to safe water is critical to the health of families in India.

These factors, combined with the current political push to end this crisis, has created unprecedented urgency to provide effective solutions to increase access to safe water and sanitation.

COVID-19 UNDERLINED THE IMPORTANCE OF SAFE WATER In mid–2020, women in Balarampur village in India stand in pre–marked circles, six feet apart, waiting to fill their vessels with water. A lack of access to safe water at home is now more life threatening than ever. Risking exposure to COVID–19, women leave their homes and walk to these kiosks each day to get the water their families need to survive. Because of your continued support, two of these women now have access to safe water at home – empowering them to safeguard their families from COVID–19 and other health issues. They join the other 14 million people we have reached in India who now have access to safe water, sanitation, and the health and resilience they bring.

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Together with our partners, we’ve changed the lives of more than 16 million people in India with access to safe water or sanitation.

OUR IMPACT IN INDIA Since 2005, Water.org has played a significant role in India’s progress toward improved water and sanitation, empowering more than 16.6 million people with access to safe water or sanitation.

By partnering with different types of organizations, including microfinance institutions, self–help group federations, state rural livelihoods missions, commercial banks, payment banks, social enterprises and the government of India, we are mobilizing resources and sharing knowledge to increase access to improved sanitation and safe water.

Water.org is heavily invested in India and strategically

USHA’S STORY In a small community outside of Hyderabad,

positioned to catalyze the national push to end the

India, Usha is one of many women who used

country’s water crisis. We continue to coordinate and

small, affordable loans to construct a water

partner closely with key multilateral development

tap or toilet at home.

finance institutions and government partners in India, such as the Ministry of Drinking Water and Sanitation’s

Usha’s husband is a taxi driver and with his

Swachh Bharat Mission, UNICEF, the World Bank,

income, he and Usha repay the loan. Now,

WaterAid, and smaller local organizations.Through these

rather than walk to collect water each day

partnerships we are working to influence public policy

like Prianka and Nanda, or walk to find a safe

and practice changes that make more funds available

place to go, Usha and her children have time

for water and sanitation solutions across the country.

and health for work and school. Watch as she shares more about the small, affordable loan that changed their lives. Through WaterCredit, we have empowered more than 14 million people like Usha across twelve states with access to safe water and sanitation.

Water.org | 2020 Annual Report 13

Financials MAKING A GLOBAL IMPACT Our impact is measured in millions – millions of dollars, people and opportunities.

With your support, and that of our many in–country partners, our smart solution to solving the water crisis is changing lives around the world. $3.5 billion in loans for water and sanitation have been disbursed to families in need around the world.

Together, we can continue to break down barriers and help millions more break the cycle of poverty through access to safe water and sanitation. Safe water is transparent, and so are we. We believe in, and practice, transparency, ethical accounting, and donor stewardship. We’re received the highest rating from Charity Navigator for 11 consecutive years and are recognized as an accredited charity with the Better Business Bureau’s Wise Giving Alliance.

Allocation of Expenses (FY 2020) $14.8M Programs $7.1M Administration $3.5M Fundrasing

14% 28%

58%

Statement of Activities Revenue, gains, & other support

2020

2019

Contributions and grants

$18,753,575

$23,981,975

Investment income and other

$570.657

$636.659

Total revenue, gains, & other support

$19,324,232

$24,618,334

Expenses

2020

2019

Water Programs $14,789,577 $19,008,834 Outreach $8,243 $1,579,724 Total program services

$14,797,820

$20,588,558

Management and general $7,153,051 $4,728,376 Fundraising

$3,536,676

$2,822,628

Total program services

$25,487,547

$28,139,562

Change in net assets

Change in net assets

2020 ($6,163,315)

2019 ($3,521,228)

Net assets, beginning of year

$20,286,029

$23,807,257

Net assets, end of year

$14,122,714

$20,286,029

Water.org | 2020 Annual Report 15

Statement of financial position Assets

2020

2019

Cash and cash equivalents

$19,262,453

$20,871,276

Grants and other receivables

$57,629

$61,645

Prepaid expenses $330,475 $373,667 Investments $2,448,633 $2,291,045 Property and equipment, net

$320,979

$424,238

Total assets $22,420,169 $24,021,871 Liabilities & net assets

2020

Accounts payable $616,950

2019 $1,066,064

Accrued expenses $1,354,047 $2,279,536 Paycheck Protection Program loan

$1,425,382

–

Refundable advances $4,901,076 $390,242 Total liabilities $8,297,455 $3,735,842 Net assets without donor restrictions

$6,785,619

$6,739,719

Net assets with donor restrictions

$7,337,095

$13,546,310

Total net assets

$14,122,714

$20,286,029

$22,420,169

$24,021,871

Total liabilities & net assets

4%

44%

Sources of Revenue (FY 2020) 63%

$12.1M Foundations $6.4M Individuals $785K Investment & other

Water.org | 2020 Annual Report 17

Teamwork SOLVING THE GLOBAL WATER CRISIS REQUIRES TEAMWORK We are fortunate to work with partners – foundations, financial institutions, and brands – who share our passion and vision. Together, we are changing lives with safe water in 11 countries around the world.Our partnerships come in all shapes and sizes – from multi–year grants to consumer—facing campaigns. There are a variety of ways we can partner to help us both achieve our goals and make more possible for families living in poverty.

PROVIDE FUNDING TO CHANGE LIVES Donations and grants from corporations, foundations and individuals are critical to changing lives with safe water. Access to safe water improves health, empowers women, increases family income and increases access to education. Access to safe water changes everything, and you can make that possible by providing funds to Water.org.

LEND FOR WATER AND SANITATION Our local and regional partners are the key to our work. These financial institutions and water service providers are critical to implementing programs and expanding access to affordable financing for safe water and sanitation. We provide them technical assistance and training to lend for water and sanitation. Thanks to their real–time problem solving and understanding of local market needs, we can reach more people. These partnerships are a win–win, strengthening their business and helping to end the cycle of poverty in their communities. We currently have 150 partners and are evaluating new markets and partner organizations. Our Chief of

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Revenue Officer, Lina Bonova, states...

The generosity of our funding partners makes our work possible, bringing us closer to achieving our vision of safe water and sanitation for all.

Brands making a big impact The IKEA Foundation believes that

Since 2015, Stella Artois (a sub-

Since 2011, the Bank of America

every child deserves a healthy start

sidiary of Anheuser-Busch InBev)

Foundation has supported

in life and water is part of that. The

and Water.org have helped provide

Water.org’s market—driven

IKEA Foundation has supported

access to safe water for more than

financial solutions to empower

Water.org since 2013 to transform

3 million people in the developing

thousands of people in India

millions of lives with access to water

world. By purchasing Limited

and Brazil with safe water and

and sanitation, and bring about last-

Edition Chalices and other Stella

sanitation solutions.

ing impact in communities across

Artois products, consumers are

India, Indonesia and Bangladesh.

empowered to support our vision.

Water.org | 2020 Annual Report 19

OUR Progress

33M people

Water.org’s approach is efficient and scaling in impact.

Check out our progress throughout the years. Each year highlights the total number of people reached for safe water and sanitation.

27M people

17.6M people

6M

3.9M

people

2015

2016

11.2M people

people

2017

2018

2019

2020

OUR Vision THE TIME IS NOW We believe water is the way to break the cycle of poverty, to protect and save lives, and to make bright futures possible. We’re here to bring water and sanitation to all. We want to make it safe, accessible, and cost—effective. We will achieve our vision by continuing to unlock more funding than what is currently dedicated to help solve the global water crisis, removing the financial barriers that stand between people in need and access to safe water and sanitation at home.

Our approach is unique and we are investing in a future that benefits every person on the planet.Increasing financing for water and sanitation is imperative to making progress toward ending the global water crisis and creating a bright future for everyone everywhere. This is who we are. We give our everything every day to make this a reality.

PARTNERING FOR PROGRESS Water.org seeks to do more, faster, and in partnership with others to make financing for water and sanitation affordable and accessible to those in need. We seek to spur system change at all levels – local, national, and global. Our approach expands the flow of capital into the sector, addressing the most significant barrier to achieving universal access to water and sanitation.

We increase access to financing by integrating partners, ideas, and approaches to ensure that, like the water solutions we make possible, affordable finance can flow down to those who need it most. We’re accelerating progress in ways by partnering directly with institutions that serve the base of the economic pyramid, expanding partnerships to accelerate access, and strengthening the environment for water and sanitation solutions at a systems level.

ACCELERATING IMPACT AND CHANGING LIVES Our approach is efficient and scaling in impact. We designed it to be that way because we believe the time is now to bring everyone, everywhere access to safe water and sanitation.

We are working to transform the lives of 60 million people with access to water and sanitation by 2025. By the end of 2019, we have reached more than 27 million people with access to safe water and sanitation through financing — proving we are serious about achieving our goal and making an impact.

Water.org | 2020 Annual Report 21

On behalf of the people whose lives changed with safe water and sanitation in 2020, thank you for your support. Together, we will see the day when everyone in the world has access to safe water and sanitation.

@WATER

@WATER.ORG