Humanitarian and International Development NGOs

On Monday, the Nonprofit Sector and Philanthropy Program at the Aspen Institute released Mobilizing Change: 10 Nonprofit Policy Proposals to Strengthen U.S. Communities.  Full disclosure: I helped edit the paper and wrote much of the introduction, and its recommendation for FEMA to create a high-level coordinating body to better integrate community-based nonprofits in disaster relief derives from a paper I authored on the local nonprofit response to Katrina.  

That recommendation stems in part from the experiences shared by international humanitarian organizations like Mercy Corps and IRC.  For many of them, Katrina was the first time they responded to a domestic emergency.  In an international setting, they are accustomed to working with the UN Office for the Coordination of Humanitarian Affairs (OCHA), and were mystified to find that neither FEMA nor any other group was focused on coordinating the multitude of local nonprofits working heroically to provide relief.

This is just one example of how comparative analysis between our domestic response architecture and the international system might result in suggestions and improvements.  What can the U.S. learn about disaster preparedness from Bangladesh, which in 2007 experienced a cyclone as strong and as damaging as a 1991 storm that killed 138,000 people - but in 2007 had fewer than 10,000 deaths?  Still tragic, yes, but a vast improvement in safety and response.   

The Mobilizing Change report also points out the growing reliance on U.S. nonprofits by government at all levels, to provide services and implement programs.  The report calls for a high-level commission to explore this relationship and propose public policies that would help government strengthen nonprofit impact, rather than focus exclusively on oversight.  

I support such a commission, since I sense that most policymakers do not understand the nonprofit sector very well, even while they are turning more and more of their attention toward it. Yet what are the implications for the nonprofit sector of an increasingly intertwined relationship with government? Can nonprofits retain their independence and hang on to the characteristics that make them uniquely successful?  The unintended consequences deserve further exploration.

This is analogous to concerns raised about NGOs in the newly published Can NGOs Make a Difference?  The Challenges of Development Alternatives. As the editors - Anthony Bebbington, Samuel Hickey, and Diana Mitlin - flatly state in their introduction: “There are serious doubts regarding how far NGOs in the North are able to do anything that is especially alternative to their host countries’ bilateral aid programmes.” More on that later.

Regarding mechanisms to raise and distribute funds in the wake of emergencies, it might be productive to revisit lessons from my experience with hurricane Katrina.  I arrived in Louisiana 10 days after the storm and helped found the Louisiana Disaster Recovery Foundation.

As documented in reports like my Weathering the Storm: the Role of Local Nonprofits in the Hurricane Katrina Relief Effort (Aspen Institute) and the Urban Institute’s Open & Operating? An Assessment of Louisiana Nonprofit Health and Human Services after Hurricanes Katrina and Rita, local nonprofits and faith-based groups filled large gaps during the relief phase, yet had great difficulty accessing funds to pay for their efforts.  This despite what was by most measures the largest philanthropic response in U.S. history, ultimately over $3.5 billion, as tracked by the Center on Philanthropy at Indiana University.  

One reason is that many of the responding organizations were never before involved in disaster relief – they were trusted local groups that recognized the need and jumped in.  They had little capacity to make themselves known to a national audience, especially while providing additional services in a fast-evolving and compromised environment.

International relief NGOs were among the most successful in distributing their resources quickly to groups on the ground, even though many of these NGOs were responding to a U.S. emergency for the first time.  They deployed staff to the area and used their experience, earned in international settings, to infiltrate local networks.  Some remained beyond the relief phase: Mercy Corps’s program operated past a couple of years, for example, and Oxfam America has made a long-term commitment, with a robust staff still in the region (disclaimer: I authored a report for Oxfam at the one-year anniversary regarding the recovery status of low-income communities).

It should be noted that the Bush-Clinton Katrina Fund, which raised the bulk of its almost $130 million in the early days of the disaster, did not distribute its first grants until December 7, 2005, more than three months after Katrina hit.  I would venture that it’s not exactly what many small donors had in mind when they contributed, hoping to relieve the immediate suffering they were witnessing on TV. 

A large block of those first grants were channeled to state funds created specifically for Katrina relief, and Mississippi’s state fund had still not used any of its $17 million ($12.4 million from the Bush-Clinton Katrina Fund) by September 2006, fully one year after Katrina.

Rather than act as a pass-through to organizations already at work, similar to what they did with funds raised for the 2004 tsunami, the former presidents created a new organization - with its own staff - to handle the distribution of the money, much like a traditional foundation.  Part of the motivation stemmed from concerns about accountability and the desire to track the use of the funds more closely.  But even a determined and well-resourced start-up could not get up to speed to be relevant during the relief phase, though it lasted 10 times longer than the norm for a big catastrophe.

The positive side is that those funds were available as relief moved to recovery and reconstruction.  While the bulk of donations by the public invariably occurs immediately after an emergency, a significant portion of resources are needed over a long period of time as communities slowly rebuild.  This is another aspect that recommends the joint appeal model discussed in the previous post.  Such an appeal has the potential not only to collect and deploy donations quickly, but may also have more leeway from the public to meter their uses throughout the different phases of recovery.