Expectations of use of funds for Japan Quake donations

There are several things we can learn from past natural disasters and the way that donations were handled:

1. Initial outpouring is large and fast, and sometimes can overwhelm even the best agencies.
2. The need for funds far exceeds the media attention on the crisis.
3. The time that you make a donation, to the time that this donation is used may take longer than you expected.
4. There are organizations that are specialized to deal with this crisis, and there are organizations that "crop-up overnight" without a proven track-record.
5. Fraud happens.

So as donors, how do we take these learnings and apply them to the latest crisis in Japan?  First and foremost it is to remember that it is up to you, the donor, to find out how your donation is being managed not up to the charity to inform you. 

So, how do you know?

1. Ask the organization what their implementation plan is for long-term crisis management.  If you want your funds used for the immediate issue, find out what their delivery time on projects is.  Lots of organizations are helping out at different stages of the crisis management, so find out which ones are operating at the stage that you want to support.
2. If the organization has adopted the Ethical Code of Fundraising, or the Donor Bill of Rights, then there should be a statement around the solicitation how the funds will be used should the campaign exceed the fundraising target.  If this is unclear, as a donor, you have the right to inform the organization how you want to designate your donation should they not need it for the crisis originally funded.
3. When does the tire hit the road?  What is your expectation for reporting on deliverables?  What is your expectation to see some marked change on the crisis?  Setting these expectations up front will help ensure that your donation is being used as you intended.  Of course, this is a negotiated process, and the charity has a duty to share with you what their crisis operation timeline is.
4. Know the organization you are supporting.  Check out the CRA Charities Listing, or the IRS websites to find out if the agency is a registered charity and what their track record is.  NOTE - These two government sites only look at financial metrics and there is more to running a good agency than just operating budget.
5. Fraud can take many forms in the charity sector.  If you make a donation and the value of your tax receipt exceeds the value of the donation - that is fraud.  If you donate to a charity that has their registration revoked, that is fraud.  If you donate to an organization and they spend the money contrary to what you agreed upon - that is fraud.  Make sure you check things out before you donate.

For a list of charities addressing the Japan crisis click here.  Again, it is up to you to check out the organization before you donate.