I recently caught this Scott Galloway interview with the founder of Charity: Water, Scott Harrison. As the name implies, Charity: Water is dedicated to helping people in developing countries get access to clean water. The cause is vital, as they say on their site:
663 million people in the world live without clean water.
In the interview, Harrison says that he wanted to address one of the greatest concerns that people have about charitable donations – does the money go to the cause it is raised for? To meet this challenge head on, Charity: Water has a commitment to use every dollar it raises from individual donors for its projects. Its overhead costs (staffing, promotion) is all paid for by high net worth investors who have the skills and resources to make sure the charity is being run effectively without waste or corruption.
This is a brilliant example of Principle 1 – Segmentation. By splitting fund raising into two realms, Charity: Water is able to divide its donor base and appeal to their needs for engagement.
