January 10, 2005

 

The tsunami of cash

“Will a man rob God? Yet you rob me.
“But you ask, ‘How do we rob you?
“In tithes and offerings. You are under a curse - the whole nation of you - because you are robbing me. Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.”
(Malachi 3:8-11)

Recent news stories indicate that the world’s generosity toward those who have suffered from the tsunami in Southern Asia has been so great that the aid agencies are having difficulty effectively processing the funds to help those in need; however, one story from last week cited a UN aid official who criticized the United States for being “stingy” with development assistance, which in 2003 (according to the Organization for Economic Cooperation and Development) was 14% of gross national income, the lowest of the major industrialized nations. Private donations reportedly only increased that figure by 3 percentage points.

One analyst suggested that American public opinion considers foreign development assistance to be “money down a rathole.” Here in Ohio, that opinion is very widespread. One reason is that our major media have a natural tendency to report the negative; and the negative of foreign aid lies in the abuse of aid by corrupt dictators in Third World nations. Certainly, to cite one memorable example, neither we nor Iraq have recovered from Saddam Hussein’s diversion of Oil for Food money to military projects.

Several points need to be made, however:

Need help deciding on a charity?

The Combined Charitable Campaign Manual, an Adobe Acrobat .pdf file, lists hundreds of charities by subject area, with a brief description of the activities of each, and most importantly, gives the percentage of the organization’s budget used for administrative and fundraising expenses. Designed for use by state employees in Ohio for their combined charitable campaign, it contains a great deal of extraneous matter, but I thought the descriptions and administrative percentages would provide an objective and helpful starting point.

For international aid, my (admittedly sectarian) preference is for the United Methodist Committee on Relief, which spends an exceptionally low 3% of its funds for administration and fundraising, according to the source cited above. Of course, there are many other charities that are worthy of your support. (Depending on the mission of the charity, 15-25% is considered acceptable).

Copyright © 2005, Harold D. Thomas. All rights reserved. Permission is granted to use the material in this blog provided both conditions are met: (1) Credit is given to the author, and (2) the use is not for profit.



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