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1. NONPROFIT INVESTOR
INDEPENDENT RESEARCH FOR PHILANTHROPY
KICKSTART INTERNATIONAL SUMMARY
KickStart International Inc. (KSI) provides technology to enable
INC. entrepreneurial individuals to lift themselves out of poverty. Its key
product is a human powered mechanical pump that allows crops to
Nonprofit Investor Rating:
be irrigated consistently and grown throughout the year. The end
NEUTRAL result is higher farm productivity for subsistence farmers in Africa.
Mission Statement STRENGTHS
KickStart’s mission is to help millions of people ▲ Potentially self-sustainable model. KSI sells each pump above its
out of poverty. KSI promotes sustainable cost, generating positive gross margin. The business model has the
economic growth and employment creation by potential to become self-sustaining if enough units are sold.
developing and promoting technologies that
can be used by dynamic entrepreneurs to ▲ High return on investment for farmers buying KSI pumps. KSI’s
establish and run profitable small scale studies show an average increase of $738 in farmer income within 24
enterprises. months of purchasing a pump and accessories that cost $39-144.
Financial Overview CAUTIONS
$ in MM, Fiscal Year Ended June 30th
● Barriers to technology adoption limit scalability. KSI’s target
$MM 2009 2010 2011
customers, subsistence farmers, often lack the education, business
Revenue and Support 6.8 7.2 9.5 skill, and capital needed to make such a large investment. Difficulty
Operating Expenses 9.3 8.6 10.5 of reaching farmers is a key roadblock to increasing pump sales.
% of Total:
● Overhead cost per pump remains high. To reach farmers, KSI
Program Expenses 92% 89% 90% supports a large sales and demonstration staff that travel to villages.
G&A 4% 6% 7% This results in high operating costs (~$300/pump).
Fundraising 3% 5% 3%
● Precariously low cash balance. KSI has operated at a deficit in the
last three fiscal years. It ended FY2011 with $213k of cash and $19k
Year Founded: 1991 of unrestricted net assets against annual expenditure of $10.5m.
Cost overruns and thin cash cushion pose a risk to KSI’s operations.
Contact Details
KickStart International - USA
2435 Polk Street, Suite 21
RECOMMENDATION: NEUTRAL
San Francisco, CA 94109-1600
USA KSI’s programs have exhibited the ability to significantly increase
farmer income. However, difficulty in reaching farmers is a challenge
http://www.kickstart.org/ to widespread adoption of the pump. Operating expenses per pump
EIN: 06-1613235 remains high due to operating subscale. KSI has run an operating
deficit since 2009 and ended FY2011 with $213k of cash, leaving the
organization in a precarious financial position. NPI advises donors to
Analyst: Arthur Xu
seek clarity on management’s budget and plan to achieve
Peer Review: Kent Chao, RJ Price sustainability.
Publication Date
July 19, 2012 Nonprofit Investor Research | nonprofitinvestor.org

2. OVERVIEW OF KICKSTART’S ACTIVITIES
KickStart International Inc. (KSI) sells human powered water pumps to subsistence farmers in Africa. The charity
facilitates the production, marketing, and distribution of three types of pumps, the MoneyMakerMax (MMM), Super
MoneyMaker (SMM), and the Hip Pump (HP). KSI establishes the supply chain, buys from factories, supplies to local
distributors, and markets to farmers. The non-profit currently operates in Kenya, Tanzania, and Mali.
Price Points of Different Pump Models:
Model Price to Farmer Price to dealer
MoneyMakerMax (MMM) $144 $129
Super MoneyMaker (SMM) $100 $87
Hip Pump (HP) $39 $33
Price to Dealer: What KSI receives when supplying pump to local retailers
Price to Farmer: Sales price that local retailers charge when selling to end users
Source: KSI
Product
KSI pumps draw water a lower elevation source to irrigate farmland. They are designed to endure heavy use with a
lifespan of three to four years. KSI has shown that 70% of pumps lasted more than 3 years in Mali and Tanzania, and 72%
lasted more than 5 years in Kenya. As for ongoing maintenance costs, the piston cups are the components that require
the most frequent replacements (every nine to twelve months). Each cup costs $1.50 and four are required.
Target Customers
KSI’s target customers are families in Africa whose main source of income is subsistence farming. According to KSI, the
typical target farmer earns $300-400 a year, or less than $2 a day. Around $100 of this is directly from farming activity.
KSI estimates that around 4% of farmland in Africa is irrigated. Farmers grow mainly drought resistant crops, such as
potatoes and onions, and receive one to two harvests a year. Because farmers tend to plant the same crops, production
is highly cyclical. In periods of good weather, oversupply results in approximately 30% of the produce becoming spoiled.
Irrigation dramatically boosts farmland productivity for several reasons. It gives farmers the ability to grow during dry
season, increasing harvest to three to four crops a year. Irrigation also allows farmers to grow a greater variety of crops
and supply them at different times based on market need, thereby selling them for a higher price. In addition, it frees up
time for families to pursue other productive activities.
KickStart International | Nonprofit Investor Research 2

3. Reaching the Customer
For KSI’s target customers, purchasing a pump is a huge investment. There are three versions of the pump. In addition to
purchasing a pump for $40-$110, farmers also need to purchase hoses, which typically cost ~$30.
For a subsistence farmer making $300-400 a year, the total upfront cost of a pump and hoses is more than a quarter of a
typical household’s annual income. With most of a farmer’s income used to pay for necessities, farmers need about 8-12
months to save up enough to afford a pump and hoses.
In addition to financial barriers, KSI has pointed out that the key constraint to demand for pumps is a lack of awareness
and trust among farmers for the technology. Despite the strong economic case for installing a pump, many farmers need
to be educated about the value of the technology. Much of donor funding is used to educate farmers about the pump,
often going farm by farm. Overcoming this is critical to scaling up.
The Path to Scale
There is a possibility that the awareness and trust problem will be solved as KSI sells more pumps. KSI points to the
adoption curves of bicycles and sewing machines in Africa as examples of how technology gain widespread acceptance.
These technologies had a slow start, but when their penetration reached a certain level, word of mouth started to
generate more demand. The hope is that once enough farmers in an area are using irrigation pumps, the benefits would
be so obvious that demand would take off. KSI estimates that this may happen after 15-20% penetration is achieved. If
KSI pumps reach that point, operating cost per pump would drop and the operation could become self sustained. In
certain areas of Kenya, KSI’s first market, penetration rates are 11-12%. KSI believes a “tipping point” may be reached in
2014.
Over the last two and a half years, KSI has experimented in a small region of Western Kenya to test the “tipping point”
hypothesis. The experiment drove local pump ownership to 13% compared to 1% for the rest of Kenya. KSI reported that
cost per sale in the experiment zone was 42% lower than the rest of Kenya. KSI is applying marketing and sales lessons
from this experiment to the rest of its markets. Key marketing initiatives include:
• Mobile Layaway: A micro-savings program that enables farmers to make mobile payments toward the purchase of
a pump. Results of a pilot indicate that it is increasing sales and reaching poorer farmers and more women.
• Farmer 2 Farmer Referral Program: A program that increases word-of-mouth, marketing, recognition and rewards.
• Partnerships with microloan institutions: Provide access credit to purchase MM pumps.
• After-sales service: A 12-month guarantee availability of spares and a hotline phone number to build confidence
in the products.
• Live demos pumping water at the retail shops
• On Farm Demonstrations, Field Days and Farm to Farm sales
Why Nonprofit?
Existing market forces have failed to address the need for pumps among subsistence farmers. This market failure exists
because of the difficulty of reaching customers who are risk-averse, cash constrained, and uninformed. It takes
enormous resources to cultivate trust and awareness before farmers are ready to commit to an investment in an
irrigation pump. KSI has been in Kenya since the late 90’s. For-profit companies have not been able to justify the cost
and time necessary to cultivate this market.
While KSI is a nonprofit, the organization makes a gross margin on each pump sold. In addition to creating a more
sustainable model than handing out pumps for free, a KSI buyer exhibits readiness by saving for many months to make
the purchase. As a result, the individual is more educated on the benefit of the pump and more motivated to make full
use of the technology.
Even if KSI’s operations become self-sustained in a certain market, KSI will likely continue to rely on donor funding to
expand to new markets where for-profit approaches are not viable.
KickStart International | Nonprofit Investor Research 3

4. PROGRAM RESULTS AND EFFECTIVENESS
After an 18% decrease in number of pumps sold in FY2010, KSI’s unit sales recovered in FY 2011. Pump accessories
account for 30-65% of product revenue each year.
Units of Pump Sold Breakdown of Product Sales
Pumps sold per year Units of pumps sold $ in '000
30000 27,277 27,326
2500
25000 22,412
22,625 2000 528
724
20000 829
547
15,069 1500
15000
405
1000
10000 1,777
1,566
1,336 1,276
500 990
5000
0 0
FY2007 FY2008 FY2009 FY2010 FY2011 FY2007 FY2008 FY2009 FY2010 FY2011
Pumps Other Products (Hoses, Parts, Etc)
Source: KSI Annual Report and Form 990
Measuring Impact
KSI has conducted internal studies showing an average increase in income of $738 within 24 months for buyers after
purchase. This data is collected from surveys conducted by visiting the buyers. At the point of sale, KSI offers farmers the
option to register for a one-year warranty program for free. KSI estimates 90% of buyers are registered. KSI staff then
visits a random sample of buyers two times: within three months after the purchase (to establish a baseline) and again
around 18 months later. The surveyors attempt to triangulate the change in household income by looking at assets, crop
sales, and purchases.
Average Change in Household Income Between Surveys:
Country Zero Age Follow Up Duration (Mo) Delta (USD)
Kenya Jan-00 Jul-01 18 1,100
Kenya Nov-04 Jun-06 19 810
Kenya Feb-06 Sep-07 19 540
Kenya May-06 Mar-07 10 340
Kenya Nov-04 Dec-09 62 530
Tanzania Jul-01 Jun-03 23 770
Tanzania Sep-05 Mar-06 6 830
Tanzania Sep-05 Jun-08 33 950
Mali 770
Average of all studies 24 738
Average of all studies excluding pumps that are not in use 870
Farmer Annual Income: 300-400 USD
Source: KSI
The table above shows aggregate results from several studies that measured changes in household income. Each study
selects 50-70 farmers from a random pool. The baseline is established at “zero age” and the delta is measured at “follow
up”. The delta is the change in income between the first and second visit. KSI notes that the average increase in income
per pump in use is greater (when excluding pumps not in use which generate zero income).
KickStart International | Nonprofit Investor Research 4

5. Third Party Study Pending
The analysis in this report relies upon KSI’s annual reports, Form 990s, and discussions with management. For the
purpose of receiving third party verification of its results, KSI has contracted International Food Policy Research Institute
(IFPRI) to conduct a three year longitudinal randomized study of 3,900 pump users in Kenya and Tanzania. In addition to
poverty, the study will cover impact on health, education, and gender equality. IFPRI has the rights to publish their
findings independent of KSI. The study began two years ago and is expected to be completed in 2013.
KickStart International | Nonprofit Investor Research 5

6. FINANCIAL OVERVIEW
From FY2008 to FY2011, overall expenses have consistently exceeded overall revenue, leading to a drain on net assets.
Net assets have fallen from $8.4m to $3.7m over the last 4 years. KSI ended FY2011 with $213k of cash and $19k of
unrestricted net assets. In light of annual operating expenses of $10.5m, KSI is precariously close to running out of cash.
Expenses have exceeded revenue since FY2009. Given the current state of the balance sheet, it will be critical to see how
management addresses this issue going forward.
Revenue Breakdown Expense Breakdown
$ in '000
$12,000 $12,000 95%
Program Expense % of Total
$9,531
$10,000 $8,715
$10,000
$2,216 90%
$6,756 $7,202 $2,142
$8,000 $8,000 $1,645
$1,454 85%
Expenses
$6,000 $6,000
80%
$4,000
$4,000 $6,566 $7,279
$5,799 $6,055
75%
$2,000
$2,000
$0 70%
$0 FY2008 FY2009 FY2010 FY2011
FY2008 FY2009 FY2010 FY2011 Other Program Services Fund-Raising
Contributions and Grants Product Sales Other Management and General Cost of Products Sold
Program Expense % of Total
KSI makes a small gross margin on product sales, which includes pump and accessories. Fluctuations in gross margin
(which ranged between 2% and 15% over the last five years) are primarily driven by product mix shifts between different
models of pumps and accessories. In each of the past five years, KSI has demonstrated its ability to generate a positive
gross margin, despite shifts in product mix.
Cost per Pump and Revenue per Pump Sold
$ per pump sold
100
90
80
70
60
50
40
30
20
10
0
FY2007 FY2008 FY2009 FY2010 FY2011
Total product costs per pump Total product revenue per pump
Source: KSI Annual Report and Form 990
KickStart International | Nonprofit Investor Research 6

7. In addition to product costs, it costs KSI $303 of operating costs per pump. The number spiked up dramatically in FY2010
due to a decrease number of pumps sold that year. However, while pump units sold recovered in FY2011, cost per unit
remained elevated, suggesting that overhead costs growth far outpaced pump sales between FY2009 and FY2011.
Conversations with KSI suggest that the organization is investing heavily to build scale. If KSI’s strategy is successful, this
number should decline over time.
Total Operating Expenditures per Pump (Program & Support Services)
$ per pump sold
320
309
310 303
300 296
290
279 263
280
270
260
250
240
230
FY2007 FY2008 FY2009 FY2010 FY2011
Source: KSI Annual Report and Form 990
45% of KSI’s total expenses are related to employee compensation. While Awareness and Outreach account for only 7%
of expenses, that figure only includes the direct costs of print, radio, and other media advertising. Through discussions
with KSI, NPI learned that KSI has a sales staff of 160 employees, who travel to the farms to educate and demonstrate
the pump. To do their jobs, demonstration staff must travel deep into rural Africa. The traveling and staffing expenses
are incurred to develop the market for pumps.
Breakdown of Total Expenses (FY2011: $10.5 million)
Salaries, Benefits,
Other
Compensation
45%
Other
8%
Motor Vehicle
Expenses
4%
Awareness and
Outreach
7%
Occupancy
3%
Professional
Services
1%
Office Expenses Travel Tools for
1% 10% Beneficiaries
21%
Source: Form 990
KickStart International | Nonprofit Investor Research 7

8. KSI sold 27.3 thousand pumps in FY2011 with a sales staff of 160, or approximately 170 pumps per salesperson per year.
Total salaries, benefits, and other compensation were $4.7 million in FY2011. Dividing this by a sales force 160 people
(ignoring all other staff such as management, design, administrative) means expenses of $29k per employee per year.
Considering the challenges of reaching farmers, these expenses seem reasonable.
Detailed Financial Information
$000’s
Fiscal Year Ended June 30 FY2008 FY2009 FY2010 FY2011
Revenue and Expenses (Tax Accounting Basis)
Support:
Contributions and Grants 6,615 4,301 5,054 7,158
Revenue
Product Sales 2,018 2,290 2,105 2,305
Investment Income 60 10 8 3
Other Revenues 22 156 35 64
Total Support and Revenues $8,715 $6,756 $7,202 $9,531
% Growth -22.5% 6.6% 32.3%
Expenses:
Tools for Beneficiaries 1,454 2,142 1,645 2,216
Other Program Services 5,538 6,450 5,959 7,279
Support Services 780 715 964 1,011
Program & Support Services Expenses 7,772 9,307 8,568 10,506
Net Foreign Exchange 261 116 96 0
Total Operating Expenses 8,033 9,423 8,664 10,506
Revenue Less Expenses $682 ($2,666) ($1,462) ($975)
Program Costs as a % of Total Expenses 87.0% 91.2% 87.8% 90.4%
Support Services as a % of Total Expenses 9.7% 7.6% 11.1% 9.6%
Per Pump Sold
Number of Pumps Sold 22,625 27,277 22,412 27,326
Pump COGS $43 $48 $43 $62
Other Products COGS (Hoses, Repairs, Etc) $21 $31 $31 $20
Total COGS per Pump $64 $79 $73 $81
Other Program and Support Services $279 $263 $309 $303
Total Cost per Pump $344 $341 $382 $384
Total Product Sales per Pump $89 $84 $94 $84
Net Cost per Pump $254 $257 $288 $300
Assets and Liabilities (Year End)
Cash 938 874 1,074 213
Pledges and Grants Receivable 5,822 3,635 2,572 2,412
Accounts Receivable 1,185 969 663 523
Inventories 473 681 679 773
Loans Receivable 0 231 292 264
Other Assets 602 474 302 347
Total Assets 9,020 6,863 5,581 4,532
Accounts Payable and Accrued Expenses 440 445 305 763
Other Liabilities 137 125 135 57
Total Liabilities 577 570 439 820
Net Assets 8,443 6,293 5,142 3,711
Unrestricted Net Assets 2,351 1,650 1,777 19
Source: IRS Form 990 for FY2008-FY2011
KickStart International | Nonprofit Investor Research 8

9. In summary, KSI’s operating costs have grown significantly and remain high on a per unit level. This reflects the difficulty
of reaching farmers and operating subscale. A bigger concern is the drain on cash and net assets seen over the last three
years. While operating at a deficit is not inherently a problem for a non-profit, doing so for many years may reflect poor
cost control. Finally, a low cash balance exposes KSI’s operations to a greater risk of disruption. Cash constraints may
limit KSI’s ability to provide after purchase support to its customers or pay its employees and suppliers. Thus, NPI
recommends donors to seek clarity on management’s budget and plan to achieve sustainability.
THIRD PARTY RATINGS
KSI holds a four-star rating from Charity Navigator. KSI has received a single user review on GreatNonprofits (four stars).
KSI applied for a grant from GiveWell in 2007 but did not meet their criteria for further evaluation. KSI is not currently
rated on Philanthropedia.
DISCLOSURES
Arthur Xu certifies that he does not have any affiliation with KSI and has never made a donation to the organization.
Additionally, Arthur has not supported directly competing organizations in a greater capacity than a nominal donation.
NPI analysts and NPI as an organization do not receive any form of compensation from reviewed charities.
This report is for informational purposes only and does not constitute a solicitation for donations. While the reliability of
information contained in this report has been assessed by NPI, NPI makes no representation as to its accuracy or
completeness, except with respect to the Disclosure Section of the report. Any opinions expressed herein reflect our
judgment as of the date of the materials and are subject to change without notice. NPI has no obligation to update,
modify or amend any report or to otherwise notify a reader thereof in the event that any matter stated herein, or any
opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate, or if research on
the subject organization is withdrawn.
Opinions and recommendations in our reports do not take into account specific reader circumstances, objectives, or
needs. The recipients of our reports must make their own independent decisions regarding any organization mentioned
by NPI.
KickStart International | Nonprofit Investor Research 9