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SmartGiving News for January 2005

Advice for Disaster Relief Donors

The outpouring of generosity on the part of Americans to aid in the relief effort for South Asia’s tsunami victims illustrates how difficult it can be to make a charitable choice among a crowded field of organizations. This is especially true when the need is urgent and time for reflection is inadequate. Here are some tips for donors along with a very short list of some of the organizations we recommend as recipients of your disaster relief dollars:

1. Donate money rather than goods. It’s best if you give money and let the relief agencies make the determination as to how it is spent. Food and clothing sent by well-meaning Americans might not meet the most critical needs and large shipments of unneeded goods can actually hamper the relief effort.
   
   
2. Go with a “brand name.” Now is not the time to support smaller organizations, no matter how good they might be. You want your dollars to go to a charity that already has substantial infrastructure that enables it to get large amounts of aid quickly to affected people. Especially avoid organizations that spring up at the time of a disaster. You’re much better off giving to an organization that has a track record of success.
   
   
3. Understand the difference between disaster relief and long-term sustainable solutions. Some organizations, such as the Red Cross and AmeriCares, are primarily focused on immediate, short-term disaster relief whereas other groups, such as Oxfam America and Christian Children’s Fund are not only helping with urgent needs but will be there over the long haul. Both are worthy goals for your giving. Search your heart for the approach that is best for you.
   
   
4. Give extra consideration to organizations that have been working in the affected countries for years and even decades prior to this tragedy. These organizations generally have infrastructure, including staff as well as partnerships with local NGOs that should make them especially effective. In addition, they already understand the people and culture of the country and region.
   
   
5. Give extra consideration to organizations whose work focuses primarily on children. The children of the region have been most adversely affected by the disaster and are most vulnerable in the weeks and months ahead. If helping children is especially important to you, you may wish to direct your gifts accordingly.
   
   
6. Don’t forget that the best response to this disaster includes financial commitment for the long-term. The scale of the disaster is such that emergency dollars will need to be followed by funding for development efforts long after the immediate crisis has faded. Please keep this in mind as you think about the impact you want to have.

Many organizations are worthy of your support, however, here are a few we particularly like:

AmeriCares www.americares.org

American Red Cross www.redcross.org

CARE www.careusa.org

Christian Children’s Fund www.christianchildrensfund.org

Oxfam America www.oxfamamerica.org

PlanUSA www.planusa.org

Save the Children www.savethechildren.org

Unicef www.unicef.org

Cost to Raise a Dollar Questioned as Valid Measure of Charity Effectiveness

A recent study by the Center on Nonprofits and Philanthropy of the Urban Institute and the Center on Philanthropy at Indiana University raises serious questions about the usefulness of cost of fundraising as a measure of charity effectiveness. The study finds that “… absent good, comparative information about program or mission effectiveness, donors and charity watchdogs often place excessive reliance on financial indicators.” Moreover, study authors note that “. . . contrary to the popular idea that spending less in these areas is virtuous, our cases suggest that nonprofits that spend too little on infrastructure have more limited effectiveness than those that spend more reasonably.” At SmartGiving, our process places the emphasis squarely on effectiveness and includes a balanced view of expense ratios. The full study can be accessed at (www.coststudy.org).

Making the Big Day Even More Special

An increasing number of Americans are shifting the emphasis at their weddings, anniversaries, milestone birthday celebrations, and retirement parties to sharing with those less fortunate. The “I Do Foundation,” created in 2000, hopes that charitable giving will become an integral part of the culture of such life events. At the Foundation’s website (www.idofoundation.org) brides and grooms (and others celebrating life events) can create a donation registry, giving guests the option of making a charitable contribution to the couple’s favorite causes in lieu of a traditional gift. Couples can also combine a donation registry with a gift registry where a portion of the purchase price of traditional gifts is also donated to favorite charities. The I Do Foundation has been featured in the New York Times, Newsweek and many other national publications.

Need a speaker?

Need a speaker for your next community or business group luncheon? Want to incorporate new content into your Planned Giving or Financial Management Seminar or your Board retreat? SmartGiving founder, Phyllis Freedman, speaks regularly on the subject of Values-Based Giving. The talk can be formatted as a presentation or as a workshop and can vary in length based on your needs, the audience & format.

For more information, contact Phyllis at pfreedman@smart-giving.com.