Two-Account Donation System

Scott Harrison created an innovative charity model at charity:water by separating donations into two distinct bank accounts - one for projects and one for operations. This approach solved the widespread distrust in charities by ensuring 100% of public donations go directly to water projects.

Key Points:

• Two-Bank Account System:

  • Public Donations Account: 100% goes to water projects
  • Operations Account: Covers overhead, salaries, office costs, travel expenses
  • Complete separation ensures transparency and trust

• Funding Operations:

  • Private group of 131 entrepreneurs and families cover all operational costs
  • Add ~20 new donors annually to support organizational growth
  • Started with initial $1M donation from Michael Birch

• Impact Tracking:

  • Geolocation of every completed project
  • Proof of impact through photos and GPS coordinates
  • Donors can see exactly where their money went

• Cost Structure:

  • $40 provides one person clean water
  • Impact lasts 10-20+ years
  • Actual cost tracked precisely ($39.67 last year)

• Results:

  • Raised $750M total
  • Helped 16.8M people get clean water
  • Operating in 22 countries
  • Zero compromises on the 100% model since initial funding