Audit your Disaster Relief Policies
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English

Audit your Disaster Relief Policies

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2 pages
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agree to certain organizationalstandards or observe certain poli-cies? What happens if someonehired as a contract worker is pho-tographed wearing your organiza-tion’s shirt while acting in a wayby Dale Hanson Bourke that is inconsistent with your state-ment of faith?If your organization hiresnational staff, how are they vet-he footage was to provide photos and “on the ted? In what situations are theydisturbing but ground” stories. This influx of allowed to publicly represent yourfascinating. new groups created tension organization? Can they sign con-TOver and over between organizations that had tracts, speak to the media or dis-again, we watched already been operational and burse supplies? Remember thatthe wave approach those who were viewed as trying laws and norms vary by culture.the shore, sweep over hotel furni- to grab the spotlight. There should be safeguards to “doture and swirl through streets. Disasters occur all over the no harm” to local culture. Never had a disaster been so well- world. Just because the mediaWhat is the length of our mis-photographed. And never has a attention is significant doesn’tsion? Relief typically lasts for arelief effort been so scrutinized. mean that an organization shouldshort period of time and must beThe tsunami in Asia gave the respond. What are the core com-transitioned into longer-termworld a front-row seat on a disas- petencies of the organization?development. Is the organizationter in a way most ...

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agree to certain organizational standards or observe certain poli-cies? What happens if someone hired as a contract worker is pho-tographed wearing your organiza-tion’s shirt while acting in a way by Dale Hanson Bourke that is inconsistent with your state-ment of faith? If your organization hires national staff, how are they vet-he footage wasto provide photos and “on theted? Inwhat situations are they disturbing butground” stories. This influx ofallowed to publicly represent your f a s c i n a t i n g .new groups created tensionorganization? Can they sign con-T Over and overbetween organizations that hadtracts, speak to the media or dis-again, we watchedalready been operational andburse supplies? Remember that the wave approachthose who were viewed as tryinglaws and norms vary by culture. the shore, sweep over hotel furni-to grab the spotlight.There should be safeguards to “do ture and swirl through streets.Disasters occur all over theno harm” to local culture. Never had a disaster been so well-world. Just because the media What is the length of our mis-photographed. And never has aattention is significant doesn’t sion?Relief typically lasts for a relief effort been so scrutinized.mean that an organization should short period of time and must be The tsunami in Asia gave therespond. What are the core com-transitioned into longer-term world a front-row seat on a disas-petencies of the organization? development. Is the organization ter in a way most had never expe-What does it bring that others just there for the short-term or will rienced before. At least in partdon’t? it now establish a longer-term because of this unprecedentedWill your organization respond operation in the region? What is coverage, there was an unprece-to a disaster in a region where the board policy for entering a new dented outpouring of giving. But country to do relief work? Does it along with this giving came more A disaster taxes the require board action to establish a ‘‘resources of any attention to the process of raising longer- term presence? Are funds funds for disasters. Suddenly the earmarked for relief being held in public has become far moreresponding charity. order to sustain longer-term devel-’’ aware of the nuances of fund-rais-opment? Was this communicated ing and the process of disasterwork is not ongoing?What are the to donors? What is the exit strat-response work.criteria for deciding to respond? egy of the organization? Humanitarian nonprofits needWill it begin to raise money before to be prepared for this new levelit knows if it can do the work?What environmental factors of scrutiny and transparency byWhat will the public message be inaffect our operational strat-developing or upgrading theirthe time period between the disas-egy?Will your organization work existing policy regarding disasterter and a plan to respond?in an environment where response situations. An organiza-Will your ministry workChristian witness is forbidden? tion must be prepared—and thethrough another group, eitherWill it partner with a Muslim staff must know its policy—because your ministry does notorganization to deliver services? before a disaster occurs.have the expertise or the regionalDoes your staff know what laws It’s time to consider an audit ofexperience? What agreements aregovern proselytizing in the region? the policies governing your organi-in place for such cooperation?What will happen to local zation’s disaster responsiveness.churches if your organization What is the operational model? raises their visibility? If your What is the scope of the orga-A disaster taxes the resources of organization has not been operat-nization’s work?Relief workersany responding charity. Does the ing in the region how will staff swarmed to Asia in the firstorganization have staff ready to become educated about various weeks following the tsunami.respond or does it have to hire factions (including Christian) Many had never worked in thecontract workers?Must contract which they may unknowingly region before but were anxiousworkers sign a statement of faith, appear to support?
How can financial accountabil-ity be ensured?In response to the tragedy on September 11, 2001, the Red Cross received an enormous amount of funds. Its policy, along with many organiza-tions, was to use the funds for the disaster indicated unless the needs were fully met. Then the money was used to meet the needs of other disasters. Once this policy was spotlighted, the public response was very negative. Some ministries still have fine print on their fund-raising materi-als that says funds raised can be used for another purpose if the income exceeds the needs. While a caveat statement of this nature may provide legal protection for a charity, integrity issues are often raised regarding honest communi-cation and donor expectations if a significant amount is received beyond what is needed. What is your organization’s policy on han-dling disaster funds and what would happen if it were examined publicly? Is your board clear about how donor intent is viewed by fund-raisers, accountantsand pro-gram staff? Do your policies give staff the guidance to tell donors that enough money has been raised for the disaster?
What fiscal policies exist for overhead charges?Most chari-ties receiving gifts and, in turn, making grants to other organiza-tions to fulfill the donor’s restric-tions do not deduct the same amount for overhead as groups that implement the work them-selves. Some groups use a lower overhead percentage for disaster response because the income is so much greater in relation to the cost of fund-raising efforts. Does your organization use the same rate for disaster response funds as it does for ongoing development work? How does it justify the over-head rate charged? If it gifts the
money to an implementing organi-zation, how much overhead does it keep? How is donor intent matched to our mission?If you raise the money, you are responsible for its use. It’s that simple. Passing it on to a local partner, sharing it with another agency or entrusting the work to contract personnel does not take the organization off the hook. A donor gives to your organization and entrusts the money to you. Your organization issues a receipt for the money. Grantee reporting require-ments should be determined before funds are passed on to another group. If your donors were able to personally observe the use of funds would they be satisfied? How will you keep your donors accurately apprised of your work? What information will If you raise the money, ‘‘you are responsible for its use. It’s that simple. be shared and what typeof finan-cial reporting will be available? What is the effect of disaster income on the rest of the budget?Disasters may bring enormous amounts of money to an organization. But they also tend to “rob” the other areas of need as donors divert donations from existing programs to disas-ter efforts. It’s hard to imagine cutting a budget when income is at a high level. But management may need to make adjustments to the previously-approved budget in order to deal with the new real-ity. Or the organization may want to be pro-active in seeking a line of credit to help even out the giv-ing over a longer period of time. Most fund-raisers are predicting
that 2005 will be a very poor year for philanthropy outside of the tsunami giving. Is your organiza-tion prepared for a downturn in giving? What have we learned?Every organization should look carefully at the tsunami relief efforts and consider how prepared it was to respond, what might have been done differently, and how it would be prepared if another natural dis-aster hit. Besides financial, fund-raising, human resources and pro-grammatic policies, your organi-zation should consider what the-ological principles govern your response in a situa tion. How are the actions of your organization consistent or inconsistent with your theological view? The role of the board is to set policy so that the staff feels free to do its work within clear boundaries and guidelines. The heightened attention of media and donors and the changing world in which we live creates a situation in which disaster fund-ing policies must be re-examined. It is imperative that all humani-tarian groups—and especially Christian organizations—be pre-pared to offer an open and clear explanation of how policies are made and implemented before the next disaster occurs. Dale Hanson Bourke is the author of “The Skeptic’s Guide to the Global AIDS Crisis” and is president of PDI, a marketing and strategy con-sulting firm. She has just been elected to ECFA’s Board of Directors.
Reprinted from FOCUS on Accountability
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