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The World We Want Foundation – 3W 2012 Annual Report On the Road to Impact: Stories from the Field


3W – The World We Want Foundation

The World We Want Foundation – 3W 2012 – On the Road to Impact Table of Contents Reflections Letter from the Founder Letter from the Managing Director

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Stories from the Field Root Capital Caribbean Harvest Foundation Comaco Pratham Acumen

10 16 18 20 24

Pipeline Kickstart, One Acre Fund, Great Ape Conservation

28

The Year Ahead The Year Ahead

30

Financials Financials

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3W – The World We Want Foundation

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3W – The World We Want Foundation

Being an Active Stakeholder Looking back at 2012, one thing has become even clearer to me: Organizations in the social and philanthropic sphere – “not-forprofit sector” – need strong and engaged stakeholders. All of our beneficiaries or partner organizations have encountered problems or issues, which were not expected, or whose importance was not understood at the start of the year. All partners have seen a mix of issues that were either a result of external factors (commodity prices, weather, competition, regulation) or a result from internal decisions (credit decisions, investments). I like to compare our “active philanthropic”­

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approach to the investment world where I am also active.

I like to believe that we are such a stakeholder and we try hard to find a balance between impact on the ground and the sustainability and accountability of the not-for-profit organization. In my investment company, all our private equity investments

(clothing, sun-glasses, and internet based retailing of shoes) encountered the same amount of problems due to a combination of external factors (slowdown in demand, weather, competition) and internal factors (flawed budget, insufficient resources) – AND – most importantly – were in as much need to get our active investor/shareholder support to pull through. This, once again, demonstrates to me the need for successful notfor-profits to have active shareholders who support but also hold the leaders of these same organizations accountable for their


Reflections

3W – The World We Want Foundation

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3W – The World We Want Foundation

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Reflections

3W – The World We Want Foundation

initiatives, goals and decisions. I like to believe that we are such a stakeholder and we try hard to find a balance between impact on the ground and the sustainability and accountability of the not-for-profit organization. Balance between sustainability and impact Where possible, we strive toward sustainability and encourage our partners to do so too - but not at the risk of becoming irrelevant from an impact perspective. Root Capital is at an interesting crossroad where the balancing act between impact and operating self-sustainability has become central. Lending to smallholder farmer cooperatives from Western finance organizations and local commercial banks is on the rise, at least to some extent thanks to the catalytic efforts of Root. More of Root´s traditional clients can now borrow which is encouraging, but to make Root even more relevant, we need to continue to push lending to higher risk clients, which are not yet bankable. We have sought to support Root over the last three years and will continue to do so at this pivotal moment. Memorable moments Shortly after hurricane Isaac hit Haiti in August, the anchor funders of Caribbean Harvest came together — Val Abe (the CEO), three distinguished, hands-on American social entrepreneurs and 3W. The challenges were multiple and difficult, but after sitting for a day in the little cement office-building and a night under a roof during a heavy torrential rain, we came up with a plan of action of how to salvage all the work put into CH. Later in the year we got the things

together to start the preparation for the construction of the processing plant and the Clinton Bush Haiti Fund made a significant contribution. The collaboration between us all, in difficult circumstances, is a great memory I will carry with me.

Although it is not the amount of money we give which is important – but rather how we give or invest in social causes – it is worth noting that we passed the 10 million dollar mark in disbursements this year. In November, we finally got to meet the great mountain gorillas in the misty Bwindi National Park in Uganda. We were impressed with how the national and NGO organizations that are active in the three parks (Virunga in DRC, Parc du Volcanes in Rwanda and Bwindi National Park) have been able to manage the parks and the activities. We could see the great

pressure from human population in the area and came to understand how fragile the system of species conservation is. Although it is not the amount of money we give which is important – but rather how we give or invest in social causes – it is worth noting that we passed the 10 million dollar mark in disbursements this year. We have done our best to invest this sum in a responsible way. And I would say, we prefer to think that another, even more valuable resource we provide to our partners is a shared commitment and passion. I would like to take the opportunity to thank the people in all the organizations we have met this past year for demonstrating and sharing their dedication and knowledge with us.

March 2013 Paul Leander-Engström Founder and Chairman 7


3W – The World We Want Foundation

Letter from the Managing Director

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J

ust as I had finished up our internal Annual Review process, I had the unexpected pleasure to meet with Martin Fisher, CEO of KickStart. Martin arrived in the middle of a Stockholm snowstorm, maybe in a bit of shock after just leaving East Africa. During our discussions, Martin shared his wisdom and experience

Reflections

3W – The World We Want Foundation

on the failures of traditional development models and his ideas for solutions. I am always humbled by the social entrepreneurs we meet, with all their years of experience, their hard lessons learned from deep within the trenches, and their continued dedication.

getting lost in the labyrinth of alleyways of the Govandi slums while observing the incredible work of the Pratham team. These hours, days, and weeks were well spent. We had a chance to venture off the beaten path and see the real work, including the challenges.

Martin told me about a paper he and Kevin Starr had written called “Do Good not Feel Good”. Interestingly, the model espoused is much like the model 3W has adopted. Was it discouraging to see the very conclusions it has taken us 4 years to make, right there, simply laid out with a website to boot? Actually, no. When I came to 3W, the founder and chairman, Paul LeanderEngström, was very clear. He wanted the organization to patiently learn through doing – feeling as we went, accumulating successes, heavy-heartedly cutting losses – letting the work teach us. I was fresh out of Fletcher School and armed with a bunch of buzzwords and development theories, but I heard the wisdom, mixed with a touch of fearlessness, in his words, and heeded Paul’s advice.

In 2012, these travels also opened new doors, enabling new relationships with other amazing social entrepreneurs, and we secured a solid pipeline for the future.

We did as Paul had done in his investment career; we steadily built a portfolio and a knowledge base. For three years, I spent many a trip on a bumpy road, slightly car-sick, heading to a coffee cooperative with the Root Capital team and their courageous leader, Willy Foote; sitting in endless hours of Haitian traffic, learning about aquaculture and one amazing man’s journey to build a desperately needed industry through social enterprise; and

In this year’s annual report, we want to celebrate our successes, learn from our mistakes, and take a moment to reflect on the impressions from the invaluable time spent with our partners in the field. These are their stories and the stories of the people they impact.

We had a chance to venture off the beaten path and see the real work, including the challenges. Do I wish I had seen Martin’s “Do Good not Feel Good” 4 years ago? Maybe, but it would not have resonated as strongly then, and I would not have known which parts were most applicable to 3W’s mission. We needed to obtain the lessons through our own hours on the road with some of the most dedicated people out there – people truly making this world a better place.

Kirsten Poitras Managing Director 9


3W – The World We Want Foundation

Root Capital Global Programs: Partner since 2010 Current Commitment – $5 million USD over three years 2012-2014

Expanding Reach and Scale Thump, thump, thump – the loud rhythmic sound of hands methodically churning the shea paste into a cream meets us at the roadside. The women make the backbreaking labor look like a dance to a familiar African beat. The talk around the buckets is excited as the shea cooperative members explain that although the emulsion process is manual, their newly purchased nut press saves them half a day’s labor. By pooling shea producers, and accessing markets and needed financing, the cooperative members were able to increase efficiency, decrease costs, increase quality and reach higher volumes, thereby demanding higher prices – all leading to greater profits which could be

used to improve daily life and the business. We have seen the immense impact of the Root Capital model many times, mostly among coffee farmers. Agricultural finance coupled with invaluable financial advisory services can help double and even triple income as well as strengthen the producer cooperative with all its subsequent social benefits. But in January 2012, we had the opportunity to see RC’s rapidly diversifying client base – namely mango and cashew exporters, agricultural seed suppliers and shea butter cooperatives – in West Africa. Of course, diversification requires

added organizational time and increased risk, but the impact is evident. With access to markets and value added processing – a result of Root Capital’s agricultural finance model – villages are now able to acquire value from their often sparse and depleted resources. Mango and shea, which would provide little income without Root Capital’s agricultural finance, are abundant. These tree-filled panoramas are a welcomed respite from the industrial sugar cane fields smoldering on the side of the road. Calculating the exact impact of Root’s presence is difficult, but when you are on the ground, the environmental and social impact is undeniably great.

Root Capital’s increasing Impact and Scale USD $ 600 000 000

250 000

450 000 000

187 500

300 000 000

125 000

150 000 000

62 500

0

0 2010 Revenue of SGBs

10

2011

2012

Loan Disbursements

2010 # of Farmers

2011

2012


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Stories from Field

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3W – The World We Want Foundation

In its core coffee regions, like Peru, Root Capital faces increasing competition and even eventual market saturation (actually a welcomed outcome is for Root Capital to work itself out of a job!), but in West Africa, Root Capital is one of the few social lenders active on the edge of the Sahel. As we make our way down the seemingly endless desert road with Root Capital CEO, Willy Foote, and the West Africa loan officer, Diaka Sall, we are, not-surprisingly, impressed with the depth of knowledge, commitment, and enthusiasm of the organization. Willy and Diaka make a charismatic team – Diaka guides us through her clients and their producers with such grace and skill. Willy

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There is a great deal to do in this region and the rewards are potentially huge. takes a step back and absorbs the relatively unfamiliar culture (West Africa is the newest region in the Root portfolio) while at the same time guiding Diaka through the nuances of the Root Capital model. Even after days on the road, our conversation stays focused on the work at

hand. There is a great deal to do in this region and the rewards are potentially huge. With 3W’s increased support of Root Capital, we leave with a great sense of pride – confident that our investment is the right one and optimistic for the future of these proud and hard working farmers.


Stories from Field

3W – The World We Want Foundation


3W – The World We Want Foundation

Root Capital and COOPCAB, Defying the Haitian Paradox

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n 2010, 3W joined forces with Root Capital in Haiti. Three years, $1.5 million in disbursements and 12 clients later, Root Capital is making progress. COOPCAB – a Haitian coffee co-op and Root Capital client – is a shining example of Root Capital’s model. Facts on Haitian farming • 70% of Haitians are farmers • Yet 60% to 70% of the country’s food is imported Challenge • Local bureaucracy (impenetrable red-tape for business investment) • Foreign policy and subsidies (undercut local product prices) • Outdated farming methods • Weak supply chain • Short-term vs. long-term planning • Very few long-term success stories

• Government investments in new technologies • New business model for Haiti investors via Root Capital • US Government to include local business partners (Root Capital) in foreign policy decision making Result - COOPCAB • Managed by local Haitian farmers • Markets its products internationally while investing in local reforestation (helping improve production) • Creates local business leaders rather than employing foreign relief workers (via Root Capital model) • Has expanded six-fold under Root Capital’s guidance - now includes 5,000 members • Annual revenue (over past three years): 2010 revenue: $184,729 / 2011 revenue: $798,536 / 2012 revenue: $664,541

Solution • Transformation from an aiddependent economy to a market-driven one

Source: The Christian Science Monitor, Change Agent: As aid to Haiti slows, a private coffee co-op scores loans and turns heads, By Daniel Jensen, February 1, 2013.

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3W – The World We Want Foundation

Caribbean Harvest Foundation – Partner since 2010

Fish and income for Haiti W

hen disembarking at the Port-au-Prince airport, the assault on the senses and emotions can be surprising. As the tropical air hits you, your mind starts to wander to a white sandy beach with crystal clear water. You are quickly brought back to reality by listening to the conversations of your fellow travellers, “that’s the bag with the antibiotics, how long does it take to get to the clinic, last time I was here we put in the latrines …”. As you watch the others, you see some who are obviously returning home and in a rush to get to friends and family and some who are first-timers, spending their hard earned vacation days to try to help this impoverished nation in some small way. Outside the airport you hit the hustle and bustle and join the other foreigners as they seek out their NGO’s logo on the side

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of an endless stream of Toyota Hilux’s and Land Cruisers. Almost every time we come, we are met by Dr. Val Abe, CEO of Caribbean Harvest Foundation (CHF). His huge smile is always a welcoming sight.

Our hope, and all of Val’s hard work, is to create a fishing industry that provides hundreds of real jobs and a domestic protein source. Even though the ride usually starts with a litany of seemingly insurmountable obstacles facing his organization, we always have fun. As we move at a snail’s pace through the pot-holed streets of Port-au-Prince, we are constantly working – trying to solve the

problems at hand, plan for the future, and ensure that the social mission of Caribbean Harvest Foundation is fulfilled. Every visit also takes us to the villages around Lake Azuei, where Val has become something of a paternal figure. However, his goal – our goal – is not to have communities of beneficiaries, but rather to build a viable, socially motivated business. Our hope, and all of Val’s hard work, is to create a fishing industry that provides hundreds of real jobs and a domestic protein source. What Val has been able to accomplish with CHF is truly remarkable. The success is attributable to Val’s unwavering dedication, his perseverance, his positive, unbreakable spirit and his ingenuity. As always, we leave feeling very fortunate to have a friend and colleague like Dr. Val Abe.


Number of Cages in the Water 500

375

250

125

0 Pre-investment Y1 (2011) Y2 (2012) Q3 pre-hurricane* * Hurricane Isaac temporarily knocked out lake production (cages) for Q4

Stories from Field

3W – The World We Want Foundation


3W – The World We Want Foundation

COMACO – Partner since 2012

African Wildlife and the Promise of Livelihoods I

n the Luangwa Valley, a remote area of Zambia, a new model of conservation is working to save the diverse and threatened wildlife, as well as to reduce poverty and hunger among the many thousands of poor farmers who coexist in this remarkable landscape. When we heard of this emerging social enterprise proving that markets and conservation can work together, we quickly made arrangements to see COMACO in action.

Landing in the valley, with its endless savannahs speckled with African wildlife, is breathtaking. But nothing could prepare us for the founder and CEO of COMACO, Dale Lewis. Given COMACO’s success, his unbridled enthusiasm and innovative spirit were not a surprise. It was that good ole’ Southern charm, mixed

with intense tenacity, that was unexpected.

Although a tough year for the farmers and COMACO, the future is bright. Despite his affable personality, the talk in the car was fixated on the work – the plight of the farmers, the need for a new model of conservation, the uphill battles, and the huge potential impact. We were mesmerized by Dale’s story of settling in Zambia 30 years ago as an elephant researcher, understanding that poaching was simply the last resort in the face of poverty and hunger, and slowly conceiving a model which could address the root causes of poaching and habitat destruction.

COMACO’s Scale and Impact 4 000

80 000

3 500

3 000

2 000

1 000

60 000 2 000

1 863

753

45 000 40 000

20 000

0

0 Pre-investment Post-investment Sales – $000’s

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71 000

A few images linger: the COMACO farmer feeding her chickens valuable corn during the hunger season – the time of year when most do not even have enough to feed their kids, the ex-poacher so proud of his huge passion fruit and bee hives, and the ShopRite shelves filled with COMACO “It’s Wild!” products. The pride in having a locally grown and processed product was obvious, evidenced by the disproportionately large amount of shelf space allocated to “It’s Wild!” rice, peanut butter, cereal, and honey.

Gross Margin

Pre-investment Post-investment # of Farmers

As COMACO moved into a more business-minded approach this


Stories from Field past year, there were significant bumps along the way. Adding to the growing pains were the erratic cotton prices that cause havoc for the farmers. 2011 saw very high cotton prices, so farmers planted more cotton only to face a huge price cut in 2012. With half the expected cash for their crops, farmers had little money to buy needed food supplies, thereby affecting COMACO’s ability to secure staple crops like groundnuts and rice. Although a tough year for the some farmers and a few unexpected challenges for COMACO, the future is bright. Farmers understand the value of a trusted partner with a social mission, seeds are in the ground, and the rains have been

exceptionally good. 2013 looks promising! The ‘businessman’ role is relatively new to Dale, and you could tell he would rather be with the farmers and his extension staff or in the bush with the wildlife. It was this bond to the roots of the organization and the dogged commitment to his mission that convinced us that COMACO was a good bet. We believe that within a few years, COMACO may very well achieve operational selfsustainability and thereby be a shining example of a new type of conservation. If anyone can achieve this, it will be Dale Lewis. 19


3W – The World We Want Foundation

Pratham – Partner since 2006

High Impact Education for the Most Disenfranchised W

e always enjoy our visits with Pratham. The yearly trek to the Mumbai slums may not seem enticing, but it is something we look forward to with great anticipation. Maybe it is the straightforwardness of the model. Most of us have a very close connection to education and children. The excitement in a child’s eyes as he or she discovers how to read a sentence or solve a math problem is awe-inspiring. All can relate; all can appreciate the beauty of education. Our trips to Pratham have mostly been just that – watching, observing, and making a few comments and tweaks. This year, we decided that we would step up our level of engagement. Our goal was not to increase our support, but to better understand the model – what was working and what could be improved – and to focus for even greater impact.

45 %

Math Level Before Learning Camp 70 %

25 %

15 % 5 %

20 %

15 %

0 %

No # recognition Math Grades 1-2

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The energy is palpable. Kids accustomed to learning only by rote memorization under very strict government teachers, are enthusiastically talking and laughing, raising their hands, answering questions – taking full advantage of this new found freedom in the most unlikely of places. The contrast to a normal

65 %

68 %

0 %

There is no privacy in the slum. Weaving in and out of small alleyways you feel as if you are walking into someone’s living room, kitchen, or bathroom. But then we hit an open area, a community space, filled with dozens of students in groups of 10 or 12.

85 %

90 %

23 %

We had planned to spend time with the group responsible for our area of support, the 212 communities of Baiganwadi and Shivaji Nagar. As always, we were very impressed with the leader of the team Anagha, as well as her key managers.

#s 1-20

#s 21-50

Math Grades 3-5

0 % 0 % 0 %

0 % 0 % 0 %

0 % 0 % 0 %

0 % 0 % 0 %

#s 51-100

Place Value

Addition

Subtraction

Math Grades 6-8


45 %

0 %

70 %

65 %

68 %

23 %

Math Level Before Learning Camp

85 %

90 %

25 %

15 % 5 %

20 %

15 %

0 %

No # recognition

#s 1-20

Math Grades 1-2

#s 21-50

0 % 0 % 0 %

0 % 0 % 0 %

0 % 0 % 0 %

0 % 0 % 0 %

#s 51-100

Place Value

Addition

Subtraction

Math Grades 6-8

Math Grades 3-5

Math Level After Learning Camp

45 % 50 % 50 %

50 %

40 %

38 %

30 % 20 %

25 % 10 %

13 % 0 %

0 % 0 % 0 % No # recognition Math Grades 1-2

8 % 0 % 0 %

#s 1-20

0 % #s 21-50

Math Grades 3-5

5 %

10 %

7 % 0 %

#s 51-100

10 % 5 %

Place Value

5 % Addition

Subtraction

Math Grades 6-8

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Stories from Field

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3W – The World We Want Foundation

What was unplanned was our visit to the rural programs with Dr. Madhav Chavan. “Indian” classroom is immense – and the kids are enjoying themselves thoroughly. The recent Learning Camp initiative is an intensive program designed to bring the most vulnerable kids, those unable to read simple sentences or perform simple addition, closer to their age appropriate skill level. Dr. Madhav Chavan, Pratham’s cofounder and CEO, feels that his organization may have “cracked the nut” for primary education with these camps. The initial results are convincing, and nothing can deny what we are seeing. A few days in Baiganwadi are always on the agenda. What was unplanned was a day in Aurangabad with Dr. Chavan.

The offer came after hours of meetings in the cramped Pratham offices near the Gateway of India. For the most part, Pratham is a rural NGO – Why not get out and see Pratham’s core activities? The bustling excitement among the Aurangabad students was as highly pitched as we had experienced in Mumbai; the teachers just as enthusiastic. A stark contrast to the slum’s stench of the Govandi trash dump and the open sewage was the clean air and the open spaces of the rural village – an instant reminder of the importance of creating livelihoods and access to services in the countryside to reduce urban migration. Two memories that are still vivid – one, talking to a group of young

teachers and the other, watching as Dr. Chavan stepped in to help one of these very volunteers. In the rural areas, as opposed to in the urban areas, the teachers are unpaid volunteers. It is this army of idealistic and talented young people that inspired Dr. Chavan to take on this challenge almost 20 years ago. They talk of building a stronger India where all have access to quality education and opportunity; listening, we believe they can do it. And watching Dr. Chavan teach, we understand that they have the right leader. It also becomes evident why he has dedicated his entire life to delivering quality education to the most disenfranchised. He is really a master – but not because the chemistry professor studied early-literacy education or even early childhood development. He did neither. His knowledge, experience, and successful model are developed directly from trial and error among students and teachers just like these in Aurangabad. Dr. Madhav is on a mission and we, at 3W, are proud to support him.

Reading Level Before Learning Camp 100 %

85 %

85 % 70 % 50 % 50 %

50 % 30 % 15 %

15 % 0%

0%

0%

0 %

Grade 1-2

0 %

0 %

Grade 3-5

0 %

0 %

Grade 6-7

0 %

Grade 8-9

Reading Level After Learning Camp 50 %

45 %

45 %

42 % 35 %

25 %

25 %

20 %

Grade 1-2 Word Level

Sentence

20 %

10 %

5%

22

35 %

25 % 10 %

0%

40 %

35 %

5 %

3 % Grade 3-5 Paragraph

Grade 6-7 Story

Grade 8-9


Stories from Field

3W – The World We Want Foundation


3W – The World We Want Foundation

Acumen – Partner since 2011

Model Education for the Poor Acumen Fund is not a typical investment for 3W. We tend to steer clear of funds as our engaged philanthropy is not conducive to this type of indirect investment. However, we were compelled to help Acumen start an Education Fund, as we felt that any successful, for-profit model for students at the bottom of the economic pyramid would have enormous catalytic impact. We also understood that most of these business models would be testing unchartered waters and may likely require grant-funding to get over the numerous and often unexpected obstacles. If so, our active engagement would be welcomed. The Education Fund hit a very big roadblock from the start. India was the agreed area of focus for the initial investments. Unfortunately, the Right to Education Act (RTE) imposed rules and regulations that greatly hindered private schools in India. The Acumen team would need to focus efforts on education services – curriculum development, delivery models, school financing, etc. – as well as the less regulated pre-school and young-adult vocational training sectors. Despite the RTE Act, pipeline in India is still, not-surprisingly, the strongest. After 18 months of investing, Acumen Fund 24

has made 2 investments, both in India: a vocational training business and a combined preschool/afterschool program. The Acumen approach requires a great amount of organizational support to their investments.

misunderstood benefits. Often illiterate themselves, the parents have little to no experience with education. As research indicates in Poor Economics: “…where parents were asked their view of the returns to

If these were easy wins, commercial funds would be knocking down the door to get access to these business models … As mentioned, these are pioneering models and the investment team needs to provide an enormous amount of advice and direction setting to these early stage investments. If these were easy wins, commercial funds would be knocking down the door to get access to these business-models, given the potential consumer-base in the hundreds of millions. Despite Acumen’s experience and the innovative entrepreneurs they support, the going is proving difficult. Education is a service that requires a long-term investment, with uncertain or

education, it was found that parents get it right on average. But they greatly overstate both the upside and the downside. They see education as a lottery ticket, not as a safe investment.” Travelling around Karnataka with the Acumen team and one of their entrepreneurs (see sidebar), we realize that the challenges, although not impossible, will be difficult to solve. We, together with the Acumen Fund team, believe that for-profit models servicing the poor are one of the needed solutions.


Stories from Field

3W – The World We Want Foundation


A pathway out of poverty Hippocampus Learning Centers (HLC), a low-cost pre-school and afterschool chain in Karnataka, is the brainchild of the spirited entrepreneur Umesh Malhotra. We had the pleasure of meeting Mr. Malhotra for three intense days while visiting a handful of his almost 80 Learning Centers throughout the state. With a career start in Infosys, Mr. Malhotra is a veteran entrepreneur with a number of successful companies. He is now setting out to provide quality pre-school and afterschool education to rural Indians living below the poverty line. His model focuses on critical thinking rather than rote memorization, and HLC tries to maximize quality while at the same time keeping costs low, so that even the poorest can afford a good education. Achieving needed cost efficiencies is a challenge, but Umesh is persistent. From experience, he knows how to scale an organization; he knows that to reach operational sustainability he needs to take 26

advantage of economies of scale. At the same time, good teachers and cluster managers are hard to find, and with an increasing number of centers, quality is harder to control. It is the dilemma faced by businesses the world over. Add to the mix HLC’s extremely price sensitive customer base, and you have a great Harvard Business case study. These quagmires are what social entrepreneurs face everyday. Yet, like Umesh, they continue to work on the tough issues within a business model, convinced that profitability will drive permanence and scale. With revenue generation, perpetuation and growth is natural – the demand and impact continues with or without fickle subsidies. Yes, for-profit education models, servicing populations living on less than one dollar a day, will require the most creative and determined entrepreneurs. But when such a model is proven, millions of children will have the opportunity to educate themselves out of poverty.


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Stories from Field

3W – The World We Want Foundation


Pipeline One of our key strategies is to be an active investor. Although very rewarding, a high level of engagement is time consuming and creates limitations to the number of possible investments under management. Currently, we feel that we are at full capacity, but we do take advantage of opportune moments to create quality pipeline. While visiting investments/projects in our current portfolio, we were fortunate to meet three amazing social entrepreneurs in the field and to witness first-hand the positive impact their hard work is yielding. Martin Fisher – KickStart:

Tackling Poverty with Irrigation In 2011, we had the pleasure of listening to Martin talk at Harvard’s Center for International Development. We were interested not only in his ingenious irrigation pumps, but also in his insight into the world of development. We were eager to understand his model: Step 1: to design and manufacture cost effective, quality pumps for the millions of farmers in Africa who rely on inconsistent rainfall Step 2: to build a viable pump business model with a profitable distribution chain Of the two, the latter is by far the most difficult. How do you get risk adverse farmers to make a significant purchase? Why not just give away the pumps? From experience, Martin knew that if you did not have profitability built into the distribution chain, there would be no future spare parts, no continued access to more pumps. In other words, you would have created a short-term solution, viable for a few and for only as long as donor dollars were available. Martin knew that this would just lead to a bunch of broken and misused pumps scattered on scorched, smallholder farms throughout Africa. What we saw in Burkina Faso was remarkable. A thriving farm producing five to six times the yield of neighboring farms with annual crop rotation; and a KickStart salesman/agronomist in the very same irrigated field trying to convince 15 or so farmers to follow suit and purchase the $100 MoneyMaker pump. The impact was clear, yet the sell was still proving to be difficult. With only 4% of its land irrigated, the potential for manual pumps in Africa is huge. We are betting that KickStart will be able to, in time and with grant funding, create the required retail model for such an important and needed product. 28

Eugene Rutagarama – International Gorilla Conservation Programme (IGCP):

Keeping the Life in Wildlife Great Ape Habitat Conservation has been a priority since 3W’s inception. In the past years we have supported the Ol Pejeta chimpanzee sanctuary, the Apesmapper Database for scientific study, policy and planning, and the development of a Conservation Action Plan in the Eastern Democratic Republic of Congo. Although impactful projects, none required our active engagement; and despite our enthusiasm and commitment to conservation, we had little first-hand experience. We decided that we needed to get to these remote ape areas in order to better understand the models, the inputs needed, and the intended outcomes. And who better to guide us through the conservation process than former IGCP Director and Goldman Environmental Prize winner, Eugene Rutagarama. Not only did we see the majestic mountain gorillas, but we also saw the positive impact that well-planned conservation can have on surrounding communities. The Virunga Tri-national Park is one of the most celebrated success stories in wildlife conservation. Exploring its beauty and wildlife, with someone who has dedicated a lifetime to its survival, was a rare and wonderful experience. This trip, through the expert guidance of one of conservation’s heroes, deepened our commitment to identify and support smart conservation – models that protect the nature and wildlife, while teaching local communities how to preserve, manage, and benefit from their valuable natural resources.


Pipeline

3W – The World We Want Foundation

Andrew Youn and Eric Pohlman – One Acre Fund:

Solving Hunger One Acre at a Time We had been following the work of the One Acre Fund for years and were very impressed with all we had read and heard from others. As the organization has many synergies to our work with Root Capital and COMACO, we vowed that if an opportune moment presented itself, we would get into the field to see the acclaimed model. Knowing the 3W Board trip would take place in East Africa to visit Root Capital clients, we decided to make a quick detour to Rwanda to visit the team and some One Acre farmers. Armed with Roger Thurow’s newly published ”The Last Hunger Season”, we eagerly embarked on the journey to the area around Lake Kivu with One Acre Founder and Executive Director, Andrew Youn.

to the various farmers. You could see that there was no prestige involved in the interaction. The two social entrepreneurs were working together to understand, analyze, and improve every detail of the model for the end-benefit of providing a better service to their farmer clients – as repeat users are a necessity for operational sustainability. As we sat on the banks of Lake Kivu, the day ended with discussions around the intricacies of the model, its potential for scale in the near term, and the hope that One Acre Fund will continue to exceed all expectations bringing ever more farmers out of hunger and poverty.

Unfortunately, our visit coincided with ‘umuganda’, the national service day that falls on the last Saturday of every month. Hence we had to meet Eric Pohlman, The Rwanda Director, and the local One Acre team on the side of a long rural road. About 50 of them, in their orange One Acre shirts, with picks and hoes in hand, singing, laughing, and working side by side. At the end of their shift, they all erupted into one large body of sound and movement. I had read that singing was a big part of the One Acre culture – their rhythm and joy was contagious. Despite the minor setback of ‘umuganda’, we were able to meet the team and a few farmers, as well as view the crop improvement R&D facilities scattered around the impressive campus. One of the most memorable aspects of the trip was observing the interaction between Andrew and Eric while talking

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The Year Ahead – Goals A presiding theme to our work is total transparency. In that spirit, we would like to share our priorities for the year ahead. In addition to managing, evaluating, and improving our current investments, we will focus on the following: Develop The World We Want Foundation into an institution – We have spent the past 3 years learning, investing, and building a strong portfolio, i.e. cutting losses and, most importantly, accumulating wins. We have spent a significant amount of time in the field, with our grantees, gaining first hand insight into what works. We will now look ahead and take the foundation to the next level, externally. We will continue to drive impact and results within our portfolio, but also engage and influence the philanthropic “industry” in the Nordic region. Manage and Optimize our Root Capital Investment: • Remain a focused, critical, and supportive force on the Board, providing a balanced approach to impact, operating selfsustainability, and reporting • Increase the “usability” and “meaningfulness” of Impact Assessment • Continue to drive the Haiti effort, considering an exit scenario by “crowding-in” partners • Build awareness of Root Capital and be a critical resource for the coming debt requirement.

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Focus to Build Caribbean Harvest into an exemplary model of development – Although making significant gains this past year, we must continue to stay focused. We must strengthen the organizational capacity, the governance and the financial planning. In addition, the organization has gone through incredible growth and will now enter the processing phase. Many challenges and risks will arise. We must still be prepared to manage this enterprise on an operational level for the coming year. We will also work closely with Val and his team to measure and understand the impact. Take an Opportunistic Approach to New Business Development – We will continue to take an opportunistic approach towards new investments. However, we now have a much better understanding of our model and compatible partners. We want to increase impact by supporting investments which fulfill all our criteria – a strong, local social entrepreneur, built in sustainability, climate focus, poverty alleviation focus, etc.


Reflections

3W – The World We Want Foundation

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3W – The World We Want Foundation

3W – Cumulative Funding 3W – Cumulative Fund ing With 2012 Commitments: TOTAL CUMULATIVE DISBURSEMENTS 2006-2012

$11 770 500

Total Program Management (not included in disbursements)

Year

2009 Overhead per Year

138 000

2010 280 000

2011 240 000

$918,000

2012 260 000

$918 000

2012

Project Grants Root Capital, Global Root Capital, Haiti

$200 000

Pratham, India

$205 000

Caribbean Harvest, Haiti

$208 500

Acumen Education Fund, Global

$140 000

Comaco, Zambia

$85 000

Lejon Award, Sweden

$10 000

Miscellaneous

$15 000

Loans

$500 000

Comaco 12 month working capital loan

$500 000

2012 Total

All Figures in USD’s

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$2 363 500 $1 500 000

$2 863 500


3W – The World We Want Foundation

2011 Project

Grants Root Capital, Global Pratham, India Caribbean Harvest, Haiti Acumen Education Fund, Global Partners in Health, Haiti Lejon Award, Sweden Miscellaneous

$1 675 000 $1 050 000 $185 000 $175 000 $140 000 $90 000 $10 000 $25 000

Loans

$4 000 000 $2 000 000 $2 000 000

2011 Total

$5 675 000

2012 Results

Root Capital short term long term

2010 Project

Pratham, India Partners in Health, Haiti Root Capital, Latin America Root Capital, Haiti Hand in Hand, India Caibbean Harvest, Haiti Stree Mukti, India Flora Fauna International, Awacachi, Ecuador Sweetwaters Chimp Sanctuary, Kenya ApesMapper, Global Database Jane Goodall Institute - DRCongo Operation Blessing, Haiti and Pakistan

$160 000 $105 000 $500 000 $250 000 $250 000 $170 000 $50 000 $90 000 $200 000 $100 000 $200 000 $60 000

2010 Total

$2 135 000

2009 Project

Stree Mukt, India Pratham, India Hand in Hand, India Tretjak, Russia

$142 000 $100 000 $250 000 $20 000

2009 Total

$512 000

2008 Project

Stree Mukti, India Pratham, India Tretjak, Russia

$20 000 $130 000 $20 000

2008 Total

$170 000

2007 Project

Stree Mukti, India Pratham, India Tretjak, Russia

$130 000 $100 000 $20 000

2007 Total

$250 000

2006 Project

Stree Mukt, India Voluntary Action for Development, Uganda Reforestation in Cameroon Grounds for Hope, DRC WaterCan, Uganda and Ethiopia

2006 Total

$65 000 $40 000 $20 000 $20 000 $20 000

$165 000

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3W – The World We Want Foundation

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3W – The World We Want Foundation

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3W – The World We Want Grev Turegatan 13B 114 46 Stockholm www.theworldwewant.se

The World We Want Foundation – 3W - 2012 Annual report  

On the Road to Impact: Stories from the Field

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