More Business, Less Charity

September 7, 2010
By Fast Company

There's a new trend emerging among a small number of NGOs (non-governmental organizations, used in reference to global nonprofits). A good example of "New School" is Water For People. (Click for the comparison between traditional nonprofit approaches and the new trend.)

Ned Breslin, CEO, Water For People, advocates for business-oriented solutions that are community-wide, serving homes and schools in developing countries. In a private interview, Breslin explained to me that his organization leverages its investment to involve the local government and community in partnering to establish the WASH infrastructure and revenue model.

Furthermore, Water For People uses its know-how to help establish a locally owned business that will service the community's WASH needs for the long-term. Breslin says his organization's position can be controversial among NGOs. Comparing the local WASH business to telephone service, Breslin explains that setting up a community water and sanitation service is useless unless it is regularly serviced. "The outcome will have to be a combination of sanitation coverage without donor dollars, high user satisfaction with the service, and a price point that does not prohibit the poor from participating but is still profitable for the service provider."

Sustainability is the true test, according to Breslin. That is, "How many people did you help five years ago, and what percentage of these people still have water today?"

Businesses as partners

My enthusiasm about working in CSR for 20 years is that the smartest companies and NGOs/nonprofits join their expertise to solve global challenges. Water For People's experience with ITT is an excellent example. As Breslin explains about companies as partners and donors, "businesses are creative. They understand experimentation and risk, as well as the need for rigor and monitoring." Breslin says that companies don't just provide funding but they also help find solutions. The partnership with ITT is one example. Additionally Breslin explains that "when we look at how to move spare parts for toilets in developing countries, a business like Pepsi or Coca-Cola is an expert resource, given their experience as a global distribution and service model."

What do you think?