Qualy #80 - The four pillars of charity: water that helped it overcome the stigma of nonprofits and become successful
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Summary
In this episode of the Qualies podcast, we speak to the founder of Charity Water, a non-fungible, non-black hole scenario where you can give 100 and get 97% of it back to the field.
Transcript
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welcome to the qualies a subscriber exclusive podcast qualies is just a shorthand slang for
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a qualification round which is something you do prior to the race just a little bit quicker
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which highlight the best questions topics tactics etc discussed on previous episodes of the drive
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subscribe so without further delay i hope you enjoy today's quali what i think is elegant about the way
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you've done it is you've literally separated the financial streams yeah they get audited separately
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yeah that is different numbers that is so brilliant fungible no that is so brilliant and we took it a
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step farther than robin hood because i just i i love like black and white before and after like i
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just i don't do well with gray so i said well if we're going to be out there that is the theme of
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your life scott you do not despite the fact that you're sitting there in a gray sweatshirt right now
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you do not do well in gray so you'll you'll like this i say well i can't be up there talking about
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a hundred percent unless we also pay back all the credit card fees so from day one and to this day if
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you went online right now you pulled out your american express and you go to charitywater.org
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and you give a hundred bucks amex gets three percent of you got it so i get 97 but what did
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you give 100 so what do you expect 100 to go to the field so in the other bank accounts and i can
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talk about how we do that later and all the trials and that but we actually pay back that three dollars
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and we send your hundred dollars your intended hundred dollars to the field so that was pillar number
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one pillar number two was then when you have two bank accounts i just realized okay we've just
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created a non-fungible non-black hole scenario so why can't we use technology to track these dollars
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as they go out and just show people where they landed so if we were going to build a well in malawi
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you know we could say your money went here or to bangladesh or to india or to cambodia or to bolivia
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and you know i lucked into meeting the google earth founder when i was starting charity water
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i met him at a conference and they were building google earth and google maps and i just realized
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i was going to be able from day one to geolocate every water project using their free platform
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and all it was going to cost me was 50 handheld gps devices i think they were garmin device at the time
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you could go buy a best buy and we would be able to fund a water project that helped people get
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clean water turn on a gps device take a picture of the gps take a picture of the project and then
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upload it and say this is proof you'd be able to see a satellite image of your well so if 100 was the
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first pillar proof then became the second pillar and proof would look very different in many different
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ways we would have hopefully myriad ways of being creative and connecting people to what their money did
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the third thing that i wanted to do differently was i wanted to i wanted the brand to feel unlike any
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other charity that i'd ever encountered i wanted to build an epic brand a beautiful brand and an
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imaginative inspiring brand and when i saw most charities i saw marketing that i didn't want any part
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of i saw shame and guilt and almost toxic marketing and you may remember the commercials from the 80s and
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the 90s with sally struthers and the flies that land on the kids faces in slow motion as they look up and
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lock their sad eyes with the camera and then the 800 number slowly creeps across the screen and you give
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and you give out of and you give out of like shame often or guilt for feeling that you're in your
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comfortable living room and these kids in africa flies crawling on their face and dude that is so
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amazing that you brought that image up like i remember the commercial you're talking about i would
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have i would have never pulled that out of my the recesses of my brain had you not mentioned that
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that's literally 35 40 years ago i just went and watched them recently um to make sure that they
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were as bad as i remember and they're worse so to me the vestiges of shame and guilt and even the
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the language by the way this this is still pervasive today the language giving back this is unhelpful
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if i snatch the mic from in front of you you know you'd say give it back as if i've taken it from you
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and the language implies we have you know we've pillaged and plundered to such extent we should
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probably throw a few scraps back to the poor let's give a little back that we've taken and
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it implies giving out of debt or obligation all unhealthy things without and i come across a quote
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by nick christophe in the new york times and he said toothpaste is being peddled with far more
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sophistication than all the world's life-saving causes charity brands suck doritos will spend hundreds
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of millions of dollars cleverly marketing you know stuff that kills us and our children but the most
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important life-saving humanitarian efforts often have an anemic brands or they guilt and shame people
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into giving to them and by the way this comes back in some way to the overhead problem and this is sort
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of one of the challenges in the non-profit world that i think is really toxic which is we have this
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belief that we shouldn't be able to pay people in a non-profit talent should be free people should be
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willing to work for under market the reason doritos can sell doritos like you can't imagine the reason
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they can push these things on you is not just because well they taste great it's because they
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can afford the best talent to figure out how to a b test all of these different things and i think a lot
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of non-profits haven't really figured out that there is a bit of a war for talent and non-profits are
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generally losing it in a big age demographic in my experience non-profits can do a really good job
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getting really young people fresh out of college who want some experience before going to grad school
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and they can do a pretty good job getting you know really talented sort of graybeards that are you know
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at the end of their careers and looking to quote unquote give back with respect to time but it's
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pretty tough to get an ultra talented 40 year old to go into a non-profit when the alternative for many
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people even those who are mission driven is to go and serve a mission in a for-profit setting
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versus a not-for-profit setting absolutely and that that is a real challenge even to this day
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you know i'll give you an example that though we had posted a job for receptionists at charity
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water recently and 1300 people applied so that's great yeah young yeah it's it's a really young talent
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pool but you're right the executive hires have been have been much harder and people like their charity
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people poor and you know dan has been fighting this for a long time you know i joke all the time
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that even now you know i'm 43 years old i've got a wife i've got kids i could drive a $60,000 toyota
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and not a $20,000 mercedes because of the perception forget about the cost of the car right
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people are totally happy with me in a you know what's the big the toyota highlander right i gotta
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have like load that thing up i could probably have a $70,000 toyota suv or a gmc but not a
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$24,000 bmw oh he's reaching that's why we were even talking about the watch i mean i'm not wearing
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a watch today all this stuff matters you know the perception becomes reality so okay let me go back
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just to that bit so the brand so our brand would feel different it would be imagined if it inspired
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to be hope-based the last analogy i just want to make i think nike is such a great analogy if nike were
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a bad old charity their marketing might go like this hey peter you're fat and you're lazy turn off
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the tv put away the junk food why don't you go for a run why don't you exercise now instead of just
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do our buy our stuff yeah yeah no so nike for years has been telling um inspirational stories of people
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overcoming adversity overcoming impossible odds right nike believes that if you've lost your legs
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you can complete a marathon you can get over the finish line you know you you lost your arm you can
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still be a shot putter right i mean they they kind of for years have said we believe there's greatness
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within you right and and then you want to buy the shoes and then you want that symbol next to your
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heart that says you know just do it because the company believes that about you in their marketing
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so charities you know don't do that so we wanted ours to be like we believe you have a mind-blowing
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capacity for compassion for empathy we believe your capacity to be deeply generous and to extend your
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arm across an ocean and help people you don't have to help you don't have a debt or an obligation to
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help but you can end the suffering because you choose to and you'll be blessed in the process and
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you know you might even find yourself redeemed in the process of moving from selfishness and
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accumulation to helping others so there were there was a lot of soft stuff i mean now i have language
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to it years later but i just i wanted charity water to feel very different i wanted to feel like apple
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or virgin and have a personality and have a brand and then the fourth pillar was i was not going to send
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anybody that looked like some white guy from new york city to africa to go drill a well
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or to india or to southeast asia i believed in my travels just what i'd seen in benin and liberia and
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then uganda and kenya as i traveled around looking for water partners i just believe that for the work
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to be sustainable and culturally appropriate it had to be led by the locals so our job would be to find
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the local organizations who could go and build these water projects our job would be to scale them
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maybe buy them more drilling rigs or trucks or help them hire the hydrologist they need but they
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would be the ones getting the credit i just i love that idea that our role could be let's raise
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awareness for this important issue let's build a movement of people who say we can and will bring
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clean drinking water to everybody on the planet let's raise money as efficiently as possible and as
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transparently as possible and then let's have all the work be done by the locals leading their
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communities in their countries forward i hope you enjoyed today's quali now sit tight for that legal
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