In the course of our Startup Campaign, many people have asked us what we will do with the money we raise. The easy answer is, “pay the rent ($500/month)”. A similar answer is, “pay ourselves” – we’d like to start receiving a living stipend starting in the New Year. But both of these responses give an incomplete picture of the situation and to what ends the funds we raise will be used. Because we charge a fee for our services and because a substantial amount of our time and energy is spent on project work, much of our future salaries and operating expenses will be paid for by earned income. That portion of our operating expenses not paid for by earned income is covered by donations and grants – the more donations we receive the less we need to charge for our services. However, to say that donations received will simply go to pay our operating expenses is to oversimplify the value and importance that this money plays. In essence, donations are the leverage by which we increase our ability to bring life-changing products and technologies to those in need – the more donations we receive the wider the array of promising projects on which we may work. Allow me to explain:
If we were to work only on those projects that could pay for program costs and operating expenses our hands would be tied with regard to project selection. We would be unable, as an organization, to consider those promising and worthwhile projects that were not well-funded enough to pay our rates as set by our hard costs. But, with the addition of a second revenue stream, charitable donations, we have more latitude in our ability to select mission-critical project work and to increase the likelihood that promising products come to fruition.
For example, for the last few years we have been working on a small-scale, open-sourced, wind turbine with the San Francisco Professionals chapter of Engineers Without Borders – USA (EWB). The goal of the project is to develop a low-cost turbine that could be used to bring a modest, if meaningful, amount of electricity to a substantial number of the 1.6 billion people living without regular access to electricity.
Currently this project is unfunded beyond prototyping costs, which are covered by EWB. All work that happens on the turbine is performed by EWB volunteers and Catapult personnel operating at a loss. As a result, the project, though promising, moves ahead slowly and uncertainly. If Catapult were able to dedicate a full-time engineer and design fellow to the project for three months we would be able to drive the design to completion, build and test a functional prototype, and travel to Guatemala to install a turbine for field-testing. The cost of this three-month program is only $25,000 but stands to benefit tens, if not hundreds, of millions of people. If that’s not leverage, I don’t know what is.
Another potential project we could work on is also energy-focused. The client, a small renewable energy generation company that uses agricultural waste products to power generators, would like to increase their operations from the 3,000 individuals they currently serve to the 50,000 potential customers they have identified. Part of their efforts to scale-up their operation involves finding a way to monetize the waste byproducts produced in the process of generating electricity. For $12,000 Catapult could conduct the material and technology research they need to evaluate this sustainable and environmentally friendly opportunity. While our potential client is able to afford $7,500, they cannot afford the rate we must charge. With a relatively small contribution from donations, Catapult would be able to leverage the limited resources of our potential client and to help them dramatically increase the scope of their operations.
While the type of products on which we work ranges from energy generation to medical devices and water sanitation, all are focused on the effort to realize the promise and opportunity that technology offers to dramatically and positively transform lives. With the addition of money we collect from donations, such as we have been raising during our Startup Campaign, we are able to work with idea-rich but resource-poor organizations to leverage the resources they do have to do an amazingly disproportionate amount of good. So the long answer to the question of, “What does my donation buy?” is the simple response of, “leverage”.













