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| Philanthropy |
In the Wake of the Tsunami
Marilen Cawad
07/01/2005
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Beach gave a grant to JKLPK, which,
Geneva Global
says, used the money to mobilize and fly in physicians
and paramedics from other
parts of Indonesia, treating 10,000 people.
JKLPK was able to provide a medical
staff that spoke the local
language, understood the customs and was willing to
go into isolated
areas. Beach’s funds passed first through a donor advised fund.
Geneva
Global researched the project, negotiated the terms and then gave wire
transfer instructions to the fund. The fund issued a tax receipt to
Beach.
Geneva then tracked and verified that JKLPK received the
money.
MANY GROUPS found
themselves ill-equipped to
respond to the extraordinary
outpouring of support for the Asian
tsunami. | Beach, who is
also a director at
Willow Creek Community Church in the Chicago suburb of
Barrington, gave
a total of $99,000 for the medical treatment project and two
others
involving trauma counseling and potable water provision. He believes that
supporting indigenous groups is more effective than donating to a large
international charitable group. “Often, the largest groups have huge
operational
costs that diminish the grant’s impact,” says
Beach.
Geneva Global and
similar entities charge a fee, which is
usually a percentage of the funds
donated for the specific project.
Geneva Global insists that its 10 percent fee
is justified by the
success of its approach for donors who are dissatisfied with
traditional methods of giving money. “Fee-based services are regarded
as the
enlightened approach to investing,” Thurman says.
Leslie
Lenkowsky, a
professor of philanthropic studies at Indiana University,
says philanthropists
should be aware of the risks associated with
coursing their money through
for-profit groups. “In the end, it’s still
a business. They can close tomorrow.”
He warns individuals to conduct
due diligence on their for-profit funding
advisor the same way they
would a financial advisor.
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