Give, But Make Sure You Do So Wisely

Americans give generously. As much as we seem detested as a country and as citizens of a country, Americans are the first to reach for their wallets when news of a disaster reaches us. No other nation or nationality is as generous as America and her citizens. Being generous is a great American quality, but do you know if your gift is getting to the people who really need it? Do you know how much of your gift is used for 'administrative' items and how much is really helping the cause? Read the article below to make sure your donation is going where you think it is going when you write that check.

With billions of dollars flowing from all sectors of the U.S. economy towards tsunami relief in Asia, it is easy for individual donors and even corporate philanthropic entities to lose sight of the power they hold to either help or inadvertently harm those most in need. When the devastating tsunami ravaged nations from India to Indonesia, world governments and aid groups were quick to pledge support not only for initial needs of food and shelter, but for psychological and financial resources that will no doubt be needed for years to come.

Given the overwhelming need for prayers and dollars in this part of the world now and in the future, individual donors and corporate and governmental entities have a responsibility to pledge, but to do so wisely and without wool over their eyes. With the depressed state of economies in the region and the turmoil of citizens’ lives, anarchy is an opportunity for pledged funds to be intercepted by greedy or inefficient governments, con artists or simply diverted unwisely by well-meaning others. Credit cards and the Internet make it easy for Americans to pledge their dollars, but despite the global village we live in, the distance and lack of an effective accountability mechanism make it difficult if not impossible for individuals to know if their money is going to good use. With billions of dollars flowing from one economy or government agency to another, and considering the fact that some of the economies into which these funds are flowing are depressed ones, it is easy to see how literally millions of dollars can be pilfered, misdirected or just plain pocketed.

In order to guard against the potential thievery of well-intentioned pledges made by our own citizens, some sort of watchdog agency is a must. Given the checkered record of the United Nations in this regard, we can hardly look to them to assure effective use of the funds for their intended purpose, yet, our citizens are left exposed to outright thievery as well as the normal ineffectiveness that sometimes happens in meeting the needs from such a large emergency effort.

Until that happens, however there are some things you can do. For individual donors here in the United States, a little research is a must. Don’t just give the money; get online and do a little research on how your money will be spent (the Red Cross has a good site that breaks down how they will spend their donations and what exactly victims will get). Call a director at the organization to which you are giving and ask to know where the money is going. It’s your money, you have that right. Find a reputable agency to give your money to; write your congressman to find out what he is doing about this massive distribution. If you don’t, your money may be wasted.

On a smaller scale you can look to see what sophisticated donors are doing. Pfizer Corporation has donated $2 million in cash to Catholic Relief Services, while some of the world’s wealthiest nations have offered to let nine countries affected by the disaster off the hook on repayments in billions of dollars in debt, and other governments across the globe have collectively offered billions more. The American Red Cross has raised approximately $400 million from donors and does have safeguards to see that your donation is directed where it is most needed. The disaster in Asia is one the affected nations will never recover from without help from those stronger and wealthier economies willing to help. America is a great nation with a great economy and citizens willing to help, but simply taking an agency’s or a government’s word that all will be well is not enough. Relief efforts for the calamity require giving, but responsible giving; giving that while well-intentioned must also be well administered.

One last word; we all have limits to what we can give, but the charity around the corner is just as dependent on our faithful generosity as is the one across the globe. We may have a responsibility as far as our wallets will reach but responsibility starts at home.

By Robert E. Freer, Jr., President of The Free Enterprise Foundation

Copyright © 2007 by Robert E. Freer, Jr. All rights reserved

About the author: Robert E. Freer, Jr. is President of The Free Enterprise Foundation. He is a Visiting Professor, at The Citadel and elected in 2005 to be their first John S. Grinalds Leader in Residence. A regular contributor to the Mercury, He can be reached by E-mail at The Citadel . Copies of his earlier columns can be found The Free Enterprise Foundation.

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