Waterequity Inc

Nonprofit profile at a glance

EIN
814109426
IRS 990 coverage
2017–2024
Forms available
Form 990 2024, Form 990-T 2020
Location
Kansas City, MO, USA
Phone
8162891803
Rating
71
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
International Development

Official website

Reported finances

Revenue
$8,638,746
Expenses
$8,333,113
Assets
$23,766,958
Liabilities
$3,731,361

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

17 people listed

Executive titles in this filing

  • PAUL O'CONNELL (PRESIDENT AND CEO)

Highest reported compensation

  • CATHERINE COLYER (CHIEF OPERATIONS OFFICER): $418,447 total reported compensation
  • JOHN MOYER (CHIEF INVESTMENT OFFICER (THRU 04/24)/BUSINESS ADVISOR): $403,464 total reported compensation
  • ELAN EMANUEL (CHIEF INVESTOR RELATIONS OFFICER): $371,795 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To foster an enduring investment capital market that accelerates universal access to safe water and sanitation in low- and middle-income countries.

What it reported doing in 2024

Waterequity is the first asset manager exclusively focused on solving one of the most urgent issues of our time - the global water and sanitation crisis. As of december 31, 2024, waterequity reached 6.9 million people with access to safe water and/or sanitation. Across funds, we have deployed more than $439 million dollars toward solving sustainable development goal 6, and the funds' investees have disbursed more than 1.3 million water and sanitation microloans. In line with our mission, our investments continue to impact mostly women and low-income clients.

Operating model

Revenue model
Other-operating. 71% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and most voting board members are independent. The filing reports few safeguards for money sent abroad and the filing does not identify recipients for some grant dollars.

Rating breakdown

  • Financial Efficiency: 82
  • Transparency & Controls: 47
  • Accountability: 82
  • Sustainability: 49
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 89.2%; rating input score 89
  • Program expense ratio: 91%; rating input score 91
  • Fundraising efficiency: $5.13 raised per $1 spent on fundraising; rating input score 18; 18th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Scored; rating input score 0
  • Grant itemization coverage: Scored; rating input score 0
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Scored; rating input score 0

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 5 of 9 controls in place; rating input score 56
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: 3.5%; rating input score 46; 46th percentile among comparable filings
  • Total-asset coverage ratio: 2.85; rating input score 72; 72nd percentile among comparable filings
  • Liabilities to assets ratio: 0.16; rating input score 49; 49th percentile among comparable filings
  • Officer compensation ratio: 34.9%; rating input score 4; 4th percentile among comparable filings

Growth

  • Program expense growth: 22.6% per year; rating input score 100; 88th percentile among comparable filings
  • Revenue growth: 1.4% per year; rating input score 100; 17th percentile among comparable filings
  • Asset growth: 15.1% per year; rating input score 100; 74th percentile among comparable filings

Details

  • Where the money goes: 89.2% of revenue deployed · 91% of spending went to programs
  • Governance: 6 of 6 board members independent · 5 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $7.6M in reported program spending
  • Leadership: top reported pay $418K · 17 people listed · 1 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $1.4M reported
  • Consistency: 28 of 28 current checks pass
  • Schedules: 7 filed schedules · includes major donors, foreign activity, executive pay, and related organizations
  • Filing history: 7 filing years from 2017 to 2024
  • Contacts: How to reach this organization
  • Money network: 11 filed money-flow records
  • Related organizations: 10 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Foreign activity oversight scored 0/100.
  • High — Transparency & Controls: Grant itemization coverage scored 0/100.
  • High — Financial Efficiency: Fundraising efficiency scored 18/100.
  • Review — Accountability: Governance controls: 3 of 8 not reported.
  • Moderate — Sustainability: Operating margin scored 46/100.
  • High — Transparency & Controls: Related-party transparency scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 4/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 49/100.