Humanitarian and International Development NGOs

While working through a backlog of reading I came across this post by Lucy Bernholz* on Philanthropy 2173, in which she characterizes “foreign aid” as “international philanthropy” while referencing Reinventing Foreign Aid, a new volume edited by William Easterly.

Private philanthropy is part of “foreign aid,” and as I’ve mentioned in previous posts, arguably its fastest growing segment.  Yet for folks in the NGO field, the term generally connotes funding made available to developing countries by Western governments and multi-lateral institutions like the World Bank and UN (and, from a cursory skim, this is the general sense in which the book uses it).  They have traditionally set the intellectual framework for how and where aid is deployed.

That one of our leading commentators on philanthropy uses the two terms interchangeably might be another example of the growing influence of private dollars within aid.  Yet most of us would not equate government funds and philanthropy and would be careful to draw a distinction between the two when examining domestic nonprofit and public services.  However innocent Lucy’s characterization (the point of her post was something else entirely), it surfaced for me the challenges of perception faced by the international NGO community.

No matter how strong the humanitarian values of the U.S. general public, they misunderstand or are uncertain about our government’s role and aspirations in providing development assistance.  According to data collected by Public Agenda, half of the country believes that we spend more on international aid than Social Security and Medicare.

They also remain pretty skeptical about its value.  As Joe Lockhart (the former White House press secretary) said at InterAction’s 2008 National Forum, “foreign assistance” are two words sure to create strong negative reactions in the American public.  Most view U.S. foreign aid as “charity” — i.e., something based on a moral impulse rather than a strategic imperative — and worry that the money is being wasted.

Major U.S. NGOs are part of a push to modernize and reform U.S. foreign assistance, an issue that they hope will get serious attention from the next presidential administration.  Convincing the public that this should be a priority will be a challenge.  And helping them understand that focusing on the reduction of global poverty as an important goal in and of itself, rather than making it subordinate to our national security or foreign policy strategies - helping them realize that this focus may ultimately have the most benefit for our security will require significant education.

“Foreign aid” may not be the same as “international philanthropy,” but it should aim to be “philanthropic” - strategically invested, with a focus on maximizing its impact on poverty.  Doing so successfully will increase human security worldwide - and increase our national security at home.

Full disclosure: I have taught seminars with Lucy Bernholz and consider her a personal friend, as well as one of the field’s leading thinkers about the future of private philanthropy.

The effort to provide relief to survivors of the Myanmar cyclone and the Chinese earthquake resurfaces questions of how to effectively mobilize and deploy charitable contributions in an international emergency. People across the U.S. interested in making contributions want to know that their gifts, large or small, are being put to good use. And as Lucy Bernholz points out in this post to her blog, Philanthropy 2173, media companies like Google are beginning to make recommendations about which organizations to support, raising questions about accountability and potential conflicts of interest.

Many European countries and others like Japan, Australia, and Canada have what are termed “joint appeals,” which promote one unified fundraising campaign for a particular emergency and then share the proceeds among a consortium of organizations. A donor makes a contribution to one place, secure in the knowledge that she is supporting organizations with the capacity to respond effectively and that those organizations are cooperating – not competing – for gifts.  The donor can be confident that her gift will be deployed fairly, in accord with pre-agreed criteria.  For the donor, the focus is on efficiency rather than choice.

The Disasters Emergency Committee in the UK is the oldest and arguably most successful of the joint appeals. Through significant partnerships with the BBC, ITV, and British Telecom, the DEC has become a known and trusted brand in the UK. It has raised approximately $750 million since 2004 just for the southeast Asia tsunami.

There have been serious conversations within the NGO community about creating something similar in the U.S., but the challenges are compounded by the larger number of NGOs that provide international relief and our fragmented media market. Most joint appeals consist of no more than a dozen organizations, making it reasonable to manage governance and fund allocations.  The mechanics and politics of who’s in, who’s out, by what standards, and how to share the money get complicated when 30-40 organizations might stake a reasonable claim.

Most joint appeals also have one or two media companies that provide instant access to the majority of their public. In the U.S., four (five?) national networks and myriad cable channels make it difficult to line up enough media support to ensure it would be value-added – and that’s just television.

There is no hard research that shows U.S. donors would give up choice to reward cooperation and efficiency in a crisis situation, though the Bush-Clinton fund raising in the wake of hurricane Katrina (more on that in the next post) seems to support the notion. But it’s an attractive proposition to have a centralized mechanism, with high levels of transparency and accountability for the use of funds and with the capacity to distribute the money quickly to organizations with the capacity and reach to provide relief effectively. This would seem advantageous to having multiple companies like Google choose and promote their own recommendations, which – while providing a bit more direction – doesn’t necessarily make donors’ choices easier, especially if different companies are recommending different organizations.

NGOs have been working to coordinate the delivery of their services on the ground and develop best practices through efforts like the Emergency Capacity-Building Project. Working together on fund raising would bring them together on the other side of the proverbial “coin.”