Does Japan need your donation?

Many aid bloggers and journalists are doing a good job communicating a nuanced message about how to respond to the devastating earthquake and tsunami in Japan. From Stephanie Strom, writing in the New York Times:

The Japanese Red Cross…has said repeatedly since the day after the earthquake that it does not want or need outside assistance. But that has not stopped the American Red Cross from raising $34 million through Tuesday afternoon in the name of Japan’s disaster victims…

The Japanese government so far has accepted help from only 15 of the 102 countries that have volunteered aid, and from small teams with special expertise from a handful of nonprofit groups…

…[M]any of the groups raising money in Japan’s name are still uncertain to whom or to where the money will go…

Holden Karnofsky, a founder of GiveWell, a Web site that researches charities, said he was struck by how quickly many nonprofit groups had moved to create ads using keywords like “Japan,” “earthquake,” “disaster,” and “help” to improve the chances of their ads showing up on Google when the words were used in search queries.

“Charities are aggressively soliciting donations around this disaster, and I don’t believe these donations necessarily are going to be used for relief or recovery in Japan because they aren’t needed for that,” Mr. Karnofsky said. “The Japanese government has made it clear it has the resources it needs for this disaster.”

Robert Ottenhoff, president and chief executive of GuideStar, a Web site that provides charity tax forms and other resources for donors, said donors themselves were to blame for the fund-raising frenzy.

People who really want to support charitable organizations and good works, Mr. Ottenhoff said, should base it on a desire to support something they already understand and believe in.

The Japanese are world-renowned experts in disaster preparedness, relief and recovery, and Japan is the third largest economy in the world. There should be no mistake that the Japanese government and Japanese organizations are well-equipped to take the lead.

Our best advice for people who feel moved to give by the tragedy in Japan: Give generously, in cash, to an organization that you trust, and don’t restrict your donation. This way, your charity can use the funds for Japan if it turns out they are needed. If not, then it is free to use your donation for another purpose, like the dozens of under-reported, large-scale disasters that CNN isn’t featuring today.

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Yes, Cash is Best. Now when will USAID follow its own advice?

These two posters are finalists in a student contest to create public service announcements that tell Americans why giving cash in emergencies is better than giving goods like food, bottled water, or used clothes. (Hat tip to Saundra Schimmelpfennig).

The contest guidelines, provided by the Center for International Disaster Information (CIDI), are very clear on why they require entrants to focus on the simple message that giving money is the best way to help. They give three reasons, with which many Aid Watch readers are already familiar:

1) Financial contributions are easily convertible to meet the international disaster victims' specific and immediate needs;

2) Cash donations are more efficient, allowing purchases to be made at a bulk discount, at a lower transportation cost…

3) Cash donations go directly to the disaster site, allowing for exact purchases of what is needed most urgently and stimulating local economies. Other donations, such as products/goods, take time and money to transport, rarely meet victims' urgent needs, often interfere with professional relief efforts and frequently clash with cultural norms.

The videos and posters from the student finalists are here. The winners, announced tomorrow, get a cash prize and will have their work featured in CIDI’s national public education campaign. Now in its fifth year focusing on the very same message, the contest is funded by USAID, a fact which should also be obvious from the USAID logo on every entry.

The US is globally one of the worst offenders of aid tying, whereby US aid is “tied” to the purchase of American goods and services (a useful primer is here). While the percentage of aid that the US reports as tied is now falling thanks to improvements in reporting procedures as well as increases in implicitly untied programming through the Millennium Challenge Corporation and PEPFAR, the US still ranked a sad 19th out of 23 rich country donors in 2008, losing to even Italy, and edging out only Spain, Greece, Korea and Portugal.

In particular, American legislation requires that most US food aid be bought in the US, processed and packed by US firms, and shipped on US-registered vessels. As a result, only about 40 percent of the money that the US spends on food aid actually goes to buying food, and that food is often tragically slow to arrive. When proposals to change these archaic laws have come before the US Congress, they have largely been shouted down or diluted. Canada successfully shifted to a cash-only system in 2008; the US could and should do the same.

As the smart giving movement gains steam among individual donors, aren't we ready to end these wasteful practices institutionalized in US law and carried out by the world's largest bilateral aid agency? Only then would USAID finally be able to follow its own good advice: Cash is best.

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Too much of a good thing? Making the most of your disaster donations

The global outpouring of support for people affected by the South Asia earthquake and tsunamis of 2004 added up to more than $14 billion. One notable fact about this $14 billion is that it represents the most generous international response to a natural disaster on record. Another is that it exceeded the total estimated cost of damages from the storm by some $4 billion, or about 30 percent.

What drove these record-breaking sums in the aftermath of the tsunami was not aid from governments, although that too was large. It was private individuals and companies who reached into their pockets and gave generously, to the Red Cross, to UNICEF and other UN agencies, and above all to what is estimated to be the largest proliferation of NGOs that had ever implemented relief efforts in a single disaster.

We don’t yet know how the Haiti response will compare. We do know that donor pledges to help those affected by last Tuesday’s earthquake in Port-au-Prince, pushed along by texting and twitter campaigns, have also been fast and plentiful (while no list seems totally comprehensive, there are tallies of pledges here , here and here).

And we know that some of the same conditions that made the response to the tsunami so generous are at play in Haiti as well. For one, the proximity to the Christmas season, when many Western donors are predisposed to be thinking about giving, and have holiday charity solicitations fresh in their minds. For another, the barrage of media coverage, especially (from Haiti) television stories featuring dramatic rescues that underscore the heroism of American-funded rescue teams.

Relief agencies having a lot of money to draw upon had many real, positive consequences for the survivors of the tsunami in South Asia. Quick-response relief efforts received praise from evaluators and local populations. But the unprecedented pledges in answer to post-tsunami fundraising appeals didn’t solve all problems, and in fact amplified some existing ones—like competition among NGOs, funding decisions based on media and political pressure rather than actual needs or capacities of affected countries, and weakening humanitarian impartiality.

The authors of one report by the Tsunami Evaluation Coalition* found that generous funding “exceeded the absorption capacity of an overstretched humanitarian industry” and actually served as a disincentive for NGOs to work together and pool resources and information. It also caused inexperienced NGOs to proliferate, and encouraged even experienced actors to work outside their realm of expertise.

Some NGOs that found themselves with unexpected amounts of money to spend responded by extending the time horizons or scope of their programs. Only Médecins sans Frontières was quick to admit that they had enough donations for the tsunami and request that additional funds help people elsewhere, a move which initially drew criticism from other NGOs. (MSF posted a similar statement for Haiti last week).

Humanitarian aid is supposed to be allocated according to the principle of impartiality -- the idea that assistance should be offered according to need, not nationality, or political belief, or even how compelling a particular disaster may be to donors. This may be an impossible ideal, but consider that the $14 billion for survivors of the tsunami works out to about $7,000 per person, and compare that to the roughly $150 per person for Somalis affected by civil strife in 2005, or $3 per person for the 2004 floods in Bangladesh.

It may seem callous to suggest even by analogy that the flow of funds going immediately to Haiti be in any way stemmed or diverted. But the effects of big fundraising appeals are complex, and not as temporary we might assume: “The scale of the resources to be spent will distort agency programmes in favour of tsunami-affected areas for years to come,” found another report.

The solution is not to stop donations to organizations doing good work in Haiti. Haitians need international help to rebuild now. The point is rather to give money in such a way that mitigates the negative effects of this compassionate onslaught of giving, and encourages the international system to allocate funds effectively and fairly. Other, good blogs have already discussed some strategies; I give you three of them:

  1. Don’t restrict (or earmark) your donations to be used only in Haiti, but rather allow your chosen NGO to spend the money you donate as they see fit. If you don’t trust them to allocate your funds effectively to where they are most needed, then why are you giving them money in the first place?
  2. Take up the Philanthrocapitalism blog's advice to give an equal amount to "someone suffering just as much, but less dramatically, elsewhere in the world."
  3. Space out your giving. Organizations with a history of working closely with Haitian communities will still be there in six months. They will probably be there in a year, and probably in five years too. They will need your money then as well, when the spotlight has shifted to the next disaster.

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*ALNAP (Active Learning Network for Accountability and Performance), is the repository of many useful documents from the Tsunami Evaluation Coalition. ALNAP has also produced lessons learned reports on Responding to Urban Disasters and Responding to Earthquakes 2008, among others.

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Haiti earthquake: Help navigating complex terrain of disaster relief

Today our thoughts go out to those who are suffering from the devastating earthquake that hit Haiti yesterday, and to all those contributing to relief efforts there. An email we received this morning from Saundra Schimmelpfennig, who has experience coordinating tsunami relief in Thailand and writes the blog Good Intentions Are Not Enough, highlights some of the problems that arise in responding to a large scale disaster such as this one:

Immediately after a disaster is prime fundraising time for NGOs. So they all rush in and put out immediate appeals before there's any clear idea of what or how much they can actually help. Only fund those that already have an office established in country because of the amount of time and money it takes to get anything more than just search and rescue up and running. If you want to move into anything such as temporary shelters, food distribution, those with an already established presence will know the people and systems better and be able to work more quickly and less expensively.

I prefer for people to try to support small, local CBOs [Community-based organizations] as they are already on the ground responding, and will be helping in the country for a long time.

Ideas for how to help and where to give:

Getting and sharing information:

First-person accounts and in-depth coverage:

Humanitarian response:

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