Wednesday, March 16, 2011

When I donate to Japan, does ALL the money go toward helping people or does a percentage to toward..?

Question:


does a percentage of it go toward the workers? I mean, I don't mind paying those who are over there helping these people because without them then there would be no point. I just want to know something. If I donate say $10 right now to Japan relief, what percentage will go toward things such as medicine, food, emergency aid, etc for these people? What percentage goes into the pocket of the workers helping them?

Answer:


Here is how donations work:

The Red Cross spends donated money in or near a disaster area, to purchase necessary supplies from local businesses. This means that these businesses can continue to pay their employees, who already affected by the disaster. Those employees can start to rebuild their own lives, and by using their continued wages to buy what they need, they ensure that other businesses and workers in their community also have resources to restore their lives. Donating money keeps people going in ways far beyond immediate supplies. (The volunteers who go to a disaster live in group tents with limited electricity, communal showers, basic food and water, and work 12-16 hours a day.)

That's for a directed donation--of which more than 90% goes directly to the disaster.

HOWEVER, please think about donating money without pinpointing the disaster. People sometimes don't understand what is in "administrative" costs.

The earthquake happened on Friday. The Red Cross and other relief organizations already existed, right? So before the disaster hit, they had offices in place to get information and coordinate their responses.

Relief agencies need donations independent of any specific disaster.

Agencies need vehicles to get to disasters. These are usually vans and trucks. These need gas, oil, tires, inspection, maintenance, and insurance--all of which costs money. Agency offices need electricity, water, computers, Internet access, phones, phone service, printers, paper, toner--and people. People are needed to produce reports that donors want and deserve, and to supervise the spending of money to make sure it is not wasted and supplies purchased are actually obtained. These people need to be paid living wages and have health insurance in full-time jobs. (You want that, right?)

All of that already has to be paid for, so when disasters occur, the agencies are ready. Without unrestricted donations not tied to any event, relief agencies cannot have any of these necessities--and can't respond as effectively as necessary. All of this is lumped into "administration."

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