Texas Water Trade

What it reported doing in 2024

Texas water trade ("twt") provides technical services (appraisals, training, ecological analysis, engineering, hydrological modeling, legal, environmental monitoring) to non-profit land and water conservation organizations and governmental agencies to support the acquisition and stewardship of water rights to benefit the natural environment and to create a future of clean, flowing water for all texans. Twt's work centers on two mechanisms for advancing a vision of sustained water abundance: educate and provide technical support to governmental and non-profit urban leaders to facilitate investment in net zero water buildings and subdivisions capable of capturing, treating and returning to the original water source as much water as they demand so that new growth increases Texas' reliable water supply. Provide technical support and funding to facilitate a diverse suite of voluntary water market transactions-from dry year options to infrastructure participation-to secure healthy flows in Texas rivers while creating supply resilience for other water users.to advance these goals, twt engages in some or all of the following activities: support organizations capable of pursuing water transactions for healthy environmental flows -twt transfers technical knowledge related to the legal frameworks of surface water rights and groundwater rights, hydrological monitoring, and ecological modeling to evaluate the benefit of various contract structures to secure water and opportunities for water rights holders who voluntarily participate in environmental flows transactions. Launch the Texas water market makers program -twt raises funds to create a competitive program for water conservation organizations who receive sustained technical support, possible grant funding, and possible access to water transaction funds. Diversify funding resources for flows restoration and protection projects - twt is the go-to organization for philanthropic, state, and federal resources pursuing environmental flows restoration projects in Texas, and works with partners across those sectors to steer existing funds where eligible and to design new funding vehicles as needed. Quarterback market development - twt develops and executes long-range strategies where healthy water flows depend upon more complex arrangements than land trusts and conservancies can pursue (for example, municipal project participation, water swaps or banking). Provide trusted project evaluation - twt develops the expertise and brand recognition to become the one-stop shop for evaluating the feasibility and benefit of environmental flows restoration and protection projects in Texas, thereby lowering transaction costs for project sponsors and funders. Set environmental flows restoration and protection targets - twt has set targets for the amount of water we work to protect or restore by 2030 with the assistance of our advisory council and using the best available science and market analysis. Advance awareness of the water supply potential of onsite water resources - twt produces environmental water informational and analytical tools that capture the imagination of policymakers, developers and community leaders of the enormous potential for onsite water to be part of the supply solution set for a growing Texas. Accelerate commitments to net zero water - twt supports high-visibility development projects that tap into onsite water resources, thereby delivering proofs of concept, working in partnership with governmental entities and communities and the developers and Texas-based companies they regulate. Support financial innovations to enable net zero development - twt works with entities administering funding resources such as property assessed clean energy (pace) loans, municipal utility districts (muds), planned unit developments (puds), tax increment financing (tif) districts and municipal bonds to scale capital available for new development to tap into onsite water resources.

Financial Efficiency

• Mission deployment rate: 82.1%; rating input score 82
• Program expense ratio: 61.4%; rating input score 61
• Fundraising efficiency: $3.81 raised per $1 spent on fundraising; rating input score 12; 12th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 3 of 6 controls in place; rating input score 50
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 76th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -32.4%; rating input score 5; 5th percentile among comparable filings
• Total-asset coverage ratio: 1.66; rating input score 59; 59th percentile among comparable filings
• Liabilities to assets ratio: 0.03; rating input score 59; 59th percentile among comparable filings
• Officer compensation ratio: 32.5%; rating input score 6; 6th percentile among comparable filings

Growth

• Program expense growth: 28.3% per year; rating input score 100; 89th percentile among comparable filings
• Revenue growth: 17.6% per year; rating input score 100; 82nd percentile among comparable filings
• Asset growth: 32.5% per year; rating input score 100; 92nd percentile among comparable filings