Charitable giving has changed – and we couldn’t be happier about it

I was delighted to read the recent article in The Economist “How a tide of tech money is transforming charity.” The article focuses on how the new class of philanthropists is different from its alma mater. Typically younger and used to making fast decisions, they are looking for results with more leverage and scale, without bureaucracy. And, as reported by Devex just this week, post-boomer philanthropists say they are less interested in traditional giving strategies and more focused on social and environmental impact. In fact, many of these philanthropists are giving without conditions to maximize influence and accelerate impact.?

At CAWST, we’re thrilled about this shift to condition-free giving.

Our donors’ appetite for condition-free giving has enabled CAWST to create immense leverage with our funds, respond to demand and provide enormous benefits to the people we serve. It’s an approach we have worked hard to cultivate with donors and as more CAWST supporters become comfortable with this giving practice, it allows us – and other not-for-profits – to become even more effective.?

The power of unrestricted giving

We have seen the impact of this approach first-hand, through our primary donor David O’Brien. David, who is the former CEO of Canadian Pacific Limited and former Chairman of the Royal Bank of Canada, has tackled philanthropy with the same rigour and strategic insights he used in his four decades of business leadership. He invests in charities the way he invests in business, which is to say he focuses on return on investment, ensures values alignment with leadership and looks for levers that will have the greatest impact.?

To date, CAWST has been able to achieve two critical things thanks to unrestricted donations, including David’s more than $50M:?

(1) expand our reach from two countries to our current network of a total of 420 organizations, in 100 countries. These organizations, in 2021 alone, reached more than 5 million people with better water and sanitation.?

(2) establish base funding so others can invest in CAWST with confidence, to do even more. By 2030, we aim to reach 100M people. With additional funding and purposeful commitment by new donors, we can do this and more.

David and I recently chatted about The Economist article and the parallels we see with the broader transformation of charitable giving and the way he has approached his CAWST donations over the years.

“My donations to CAWST are unrestricted, as I rely on you to use the funds in the most effective way,” he explains. “If you give to the organization and let them use the money as they will, because they know best, in the end you’re going to make a bigger impact than if you designate to give in just one area, because you have to have an effective organization to carry it out.”

Of course, I recognize there is some behind-the-scenes work that needs to take place before someone will donate in this way. Philanthropists aren’t going to hand over a cheque blindly and hope for the best. For those searching for somewhere to give, there are a few key steps that I would encourage donors to take:

1)????Address the root cause of the problem you want to solve

At CAWST, we focus specifically on clean water and sanitation solutions, and to do so at the scale needed:?2.5 billion?of people around the world still need access to clean water.?

Our vision is a world where people have the opportunity to succeed because their basic water and sanitation needs have been met, and our unrestricted donations have created outstanding results.??

“I?have found hitching my wagon to a cause bigger than myself has been very rewarding. CAWST now has a goal to impact 100 million people with better water sanitation and the organization?can do even more,” says David.??“I don’t think enough money is spent in international development – or at least on the fundamentals. People are inclined to give in emergencies,” he adds. But, when donors contribute to causes that take care of basics like clean water, societies can rise out of poverty.

2)????Learn about prospective organizations

This can be as simple as a conversation with the CEO or extensive research into their mission, methods and mandate. To feel confident in making a fast and easy donation, it’s important to feel confident in the charity and its leadership. It’s just as if you were investing in a for-profit venture – you’d want to know what it stands for, how it’s run and who is leading the business.?

Just like a business, my role is to lead our team to maximize our results, and I’m humbled by the trust our donors place in me.?

“In my case, I felt comfortable giving in an unrestricted way because I have confidence in the CEO,” says David.??“I could see that, as the leader of CAWST, you were well-versed in the issues that had to be dealt with – much more so than I. I have the confidence you can lead the organization and use the money I’m giving much more effectively than if I was trying to direct it to specific purposes.”???

Of course, this confidence wasn’t built overnight – we have spent many hours working together and sharing knowledge about CAWST, its operations and its impact.??

Whatever time is needed for you to feel secure in giving unconditionally, it’s worth the investment up front to enable fast, easy and impactful donations going forward.

3)????Look for agile, efficient organizations

As The Economist article explained, new-age philanthropists are less keen on giving to organizations that are laden with bureaucracy – they want to know their money is having immediate, measurable and meaningful impact.

At CAWST, we pride ourselves in our agility and efficiency. As a small, entrepreneurial not-for-profit, with just over 50 employees, we?punch above our weight.?

We employ the leverage and power of local people. Instead of deploying CAWST employees to implement projects in areas we feel need our services, we are responsive to local people taking initiative to improve their own communities. For example, by teaching them to build biosand filters, a future with clean water is within their own control. Sustaining their water resources doesn’t require our ongoing investment or involvement.?

4)????Recognize the power of “unsexy” giving

For organizations to be efficient and have impact, they need investment in areas like HR and IT. All too often, what gets “sold” to donors (because it’s easier) is donating to big infrastructure, such as building wells, schools, and homes.

The ongoing expense for workers is often not factored in, yet is essential for enduring success. In Northern Guatemala, for example, the cost of the materials for a biosand filter is $45.?Yet, for only $120 per filter, a donor can?also?ensure local?technicians are trained and install the filters correctly, families are in turn trained to maintain and operate their own filters, transportation is in place to deliver filters, and there is proper monitoring and follow-up.?

Sadly,?it is harder to market the latter to donors, but it is so important. The thing is, when the work isn’t done right, many infrastructure projects, even filters are abandoned and not used. Without investment in the auxiliary services alongside the infrastructure, the impact donations are designed to have falls short of its potential.?

The larger the infrastructure, the higher the risk that training is not adequately accomplished. CAWST’s model focusses on training for self-sufficiency and long-life sustainability. For example, we’ve seen biosand filters still in operation after two decades.

When you give to an organization and leave the decision-making up to them, they can allocate funds to the areas that are needed to do their work – and you can have the confidence that your donation is well spent.

5)????Be conscious of compound impact

When we teach a community how to build and use a biosand filter, they can take that knowledge and build more filters. In a conversation I recently had with RBC, I shared an example about women in Haiti who learned that an infant in their community had died as a result of unsafe drinking water. The women approached a local organization that had been trained by CAWST, wanting to learn how to build the concrete water filters. Once the women were trained, they borrowed the mold so they could build filters for their homes. With the help of CAWST, the women went on to secure $2,000 to build 270 filters for their community. That’s compound impact.

In 2021 alone, organizations trained by CAWST and our partners provided 5 million people with better water and sanitation. Today, we are poised to scale up even further. We are on track to grow our clients, partners and collaborations across every country of the world, with a target of reaching 100 million people by 2030. With new donations, there’s no limit to what we can accomplish at CAWST.

By giving unconditionally to organizations you trust, you enable them to maximize the impact of your donations. You empower them to direct the funds to where they’re needed most and deliver the maximum effect. In CAWST’s case, this means reaching as many peoples as possible with better water, sanitation and hygiene in their homes, schools, and health facilities.??

CAWST’s ‘train the trainer’ framework for local self-sufficiency is the right model to achieve the kind of scale needed. Please consider learning more about CAWST – I can say with confidence that our small, passionate and committed team will multiply the impact of your donation and exceed your expectations. For more information, find us at cawst.org or contact me directly here on LinkedIn.?