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/ Home / Editorial / Money & Meaning / Philanthropy /
Best Practices: Philanthropy
In the Wake of the Tsunami
Marilen Cawad
07/01/2005

Overlarge Largesse
Nonprofits usually compete for funding, conducting intense marketing campaigns to portray themselves as the first option for donors who want to make an immediate contribution during a disaster. Many of these groups, however, found themselves poorly equipped to respond to the outpouring of support for the Asian tsunami.

The day after the disaster struck, CARE launched an online campaign entitled “Asia Quake Disaster.” The website featured updated news, photos and streaming videos of tsunami victims and relief and recovery operations. It also had a link to a page where donors could pledge funds with a credit card. CARE capped online donations at $10,000 per transaction, and asked that larger amounts be transmitted by mail or phone. In the United States, CARE alone raised $43.3 million. (The group says approximately 8 percent of that figure will be used to cover administrative costs.) The organization admits to being challenged by the deluge of donations. “How soon can we open 60,000 pieces of mail?” CARE development director Beth Gluck asks. “What do we do with all the checks? How soon can we respond back to the donors?”

International aid organizations have also learned not to provide a surfeit of cash to the affected area too quickly.  “We don’t want to overtax a fragile system of domestic NGOs [nongovernment organizations] that lack the capacity to absorb large grants,” says Raymond Offenheiser, president of Oxfam America, an international development and relief agency headquartered in Washington, D.C. Over the long term, a deluge of U.S. dollars into developing economies can also cause local currencies to steeply appreciate, which can lead to rapid inflation.

Large aid groups working in the same devastated areas can also cause confusion and duplicate efforts. Several humanitarian groups may provide medical care to the same refugee camp, while none offers food or clothing. To avoid these missteps in the future, Offenheiser suggests that national governments, with support from the United Nations, implement a formal system to accredit international humanitarian organizations to ensure their qualifications for the scope and duration of the work they propose to do in a disaster area. “Not every group that shows up at a disaster scene is qualified to help out, and their well-meaning efforts can end up hampering relief efforts,” says Offenheiser, who in February sent written testimony to the Senate Foreign Relations Committee on the lessons Oxfam learned from the tsunami response.

Many entrepreneurs and corporations that specialize in infrastructure also offered their technical skills, but most of them lacked international expertise, and few had prior experience in disaster conditions. In the aftermath of the tsunami, international aid groups realized that the speed, quality and effectiveness of emergency response in these highly skilled areas require vast improvements.

To address this problem, CARE, Oxfam GB, Catholic Relief Services, International Rescue Committee, Mercy Corps, Save the Children Federation and World Vision International have collaborated to expand the pool of qualified aid workers to address shortages in skills. The Emergency Capacity-Building Initiative, funded with a grant of $5.18 million over two years from the Bill & Melinda Gates Foundation, aims to combine the agencies’ collective knowledge and experience to hire and train personnel who can lead rebuilding efforts in tsunami-damaged areas of India, Indonesia, Sri Lanka and Thailand, replacing emergency workers who will return to their usual duties in other countries. Most new staff will be citizens of the countries in which they work.

“Each successive major disaster offers the humanitarian aid community lessons in how we can improve our work,” Offenheiser says. “But unless those lessons are implemented by the scores of aid groups flocking to southern Asia, our collective best practices will be submerged in an anarchy of altruism.”

Marilen Cawad, an intern at Worth, is studying journalism and international affairs at Columbia University. marilenc@worth.com
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