Sunday, April 22, 2018

Direct Relief


Hello Potential Donors!
            Before I introduce my charity, I want to briefly talk about my process in going about picking an organization. Unlike many of you I do not have a charity that I hold very near and dear to my heart. I have not participated in any organization that I feel must receive this donation. So rather than donate to a charity that I am very heartfelt about, I looked for a charity that was extremely effective. I am not saying that the way I chose my charity is better, but I truly believe in effective altruism. With that said, I decided to go with the charity Direct Relief.
            Direct Relief’s mission statement is “to improve the health and lives of people affected by poverty or emergencies.” They are a humanitarian aid organization, active in all 50 states and more than 80 countries. They give to those in need despite religion, political agenda, ethnicities or ability to pay. They have given out nearly 365 million products with a value exceeding $760 million dollars for various disasters affecting people around the world. Despite they’re effectiveness, I choose this organization as it received a 100.00 overall rating on Charity Navigator as well as a 100.00 for its finances, accountability and transparency. Even more, 99% of donations go to relief. Moreover, if we cover the processing fee, 100% of the donation goes to the charity. They then direct that money into 6 different crisis they are currently looking at. We have the choice to donate to one specific or to whichever is in most need. I will include the 6 crises at the end of the post so if we decide to go with this charity we can vote then where that money goes.
            I find each week the same question is being asked. Where is our donation going and will it make an impact? The answer is yes! Almost 100% of our donation will go to a crisis that is in serious need of money. While I cannot tell you exactly where the money will go, whether it be food, bicycles for transportation, bandages or medical supplies for the sick. I do feel confident that our donation will have a critical impact. Especially if we choose to donate internationally to a poorer country where the USD has a higher value. CNBC rates this as #1 of the top ten charities changing the world and Forbes praises them on their 100% efficiency. I will attach a link to their website and you can see for yourself. I think if we want to truly make a difference here is an amazing chance to do so.
Thank you for reading this,
Jacob Croes
1.     1/9 Crises Fund for Monecito Mudslide
2.     Hurricane Response—Puerto Rico
3.     U.S programs
4.     International programs
5.     Syrian Refugee Crisis
6.     Maternal and Child Health


5 comments:

  1. Jacob,
    Even if it hasn’t been explicitly said, I feel as though you and I may never quite see eye to eye on our strategies for philanthropic giving. And I think in terms of this class that’s the point; to see those differences so that we can gain a better understanding of one another and hopefully all come to a consensus in the end. However, in the case of Direct Relief, it is the perfect example of an organization that satisfies both the head and the heart and so I am quite glad that you are pitching it.
    Financially, Direct Relief is probably the most efficient organization I have seen so far in terms of using donors’ funds to directly effect programs and therefore cause profound impact for those participating in the programs. Like their Charity Navigator page says, 99.4% of their expenses go towards their programs. I almost wish we could see how they function in person because their other expenses are so low compared to that value. In terms of administrative costs it only makes up 0.3% of their expenses. I wonder if the percentages are so small because it is in terms of their total expenditures which for the year equaled $891,389,099? In terms of administrative expenses that would be $2,447,466 which is quite a large sum of money, but when compared to the program expenses it really isn’t that much. One thing that concerned me was that they had a deficit for in 2016 of $119,126,915. According to their data they also had a deficit in 2014. You may not know, but I was wondering what adjustments they may make in terms of these deficits or if the deficits would really affect them at all considering their immense revenue?
    What I really liked about the organization, however, was how different it was from what we’ve seen this year. I visited their website and looked at the form to submit a donation. Unlike many other organizations Direct Relief has a box where donors can indicate what program they would like to donate to. I didn’t quite understand what you meant when I was reading your post, but once I saw it on their website it completely made sense. As a donor you can either indicate that you would like to put your donation towards “where it is needed most” or to one of the six programs you mentioned all of which are Direct Relief’s if I am understanding correctly. Do you worry that they are biting off more than they can chew in terms of tackling so many different issues in as many as 50 states and 80 countries? Anyway, I thought this was a very valuable choice to be given as a donor because I know as a class we previously discussed that there were specific programs we would’ve liked to donate to in terms of our finalist organizations. By being able to choose the program, the donor can emphasize the impact of their donation towards an issue area that truly concerns them.
    The organization also offers updates in the form of blogs, which I find quite important. I read about the residents of Bauta Abajo, a Puerto Rican community that was devastated by Hurricane Maria. The community needed the help to regain access to water and Direct Relief sought to it. As of April 20th, both water pump power systems were said to have been made operational. The project started in February and in such a short amount of time has already been completed. People like 85-year-old Don Andrés Rodríguez Rodríguez, have been given their community back; a community that they have loved for their whole lives. Direct Relief was able to help them rise from the devastation of Hurricane Maria. Direct Relief helped them survive the worst nature could throw at them. Hearing these stories is important to me because it allows me to see the personal stakes that Direct Relief has in people’s lives. It allows me to see that the organization does in fact align with my belief that people should be able to get the help they need when and if they need it.
    Neither of us are right or wrong about philanthropic giving, our differences just makes making decisions harder, yet I wish more organizations like this existed so that the decision wouldn’t be so hard.

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  2. Hi Jacob,

    I can already tell that your charity pitch will be quite unusual considering the fact that unlike the majority of people in this class, you have chosen an organization using almost entirely (if not completely) your head in relation to your heart. I believe that this will lead to a nice change in subject regarding how we should select an organization; this may be the first time in quite a while that we are forced to choose between one or two small organizations and a large organization centered around Effective Altruism. Although we have discussed numerous topics this semester, we may be forced to leave our comfort zones and discuss something which we are not used to. Despite the fact we have delved into numerous areas of philanthropical debate (and the fact that we are nearing the conclusion of the semester), I am predicting that the incoming charity pitch will force us to consider the dilemma of donating to a small organization that needs the money more as opposed to a well-established organization with a sterling reputation which could also make the most out of the money. After the smoke clears, we will be considering this debacle even after the vote is in.

    Overall, I am very intrigued by your "head-heavy" approach toward this charity pitch and I very much look forward for us both as a class and as individuals to be challenged in one of the few ways which we have not been all semester.

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  3. Hi Jacob,

    The organization you have identified seems to be paying an important role in making a difference in all around the United States, which is what i think is the dos important aspect of making a donation. How effective our donation is, is a 'head' over 'heart' decision. Throughout this entire semester, I have been preaching that we should devote our resources to an organization that is able to be effective in what they do. Therefore, I see it as a valuable asset to your approach of giving. Giving with your heart is by no means forbidden, and sometimes we need to make a decision based on a personal connection, but generally speaking I believe that it is important to get the most out of our donation. In addition to this, I am also compelled to give to your organization because it reflects incredible ratings on multiple platforms. Even though this does not mean much on a personal level, I believe that it is important to jeep these guidelines in mind to know that your donation is going to an organization that will not use your money for anything else than helping people in need.

    A further reason why I really like you pitch is, because you can actually choose where your donation goes. The New York Times reported on Direct Relief's option of choosing where you allocate your donation. On their website, users can "They can click to let Direct Relief use their gift where it is “needed most.” Or, they can use a drop-down menu to have their donation directed to one of several program areas, including efforts focusing on Hurricane Matthew, the Zika virus and the Syrian refugee crisis."

    On a personal note, this is a great opportunity, because they offer so many different issue areas to donate to, which includes the Syrian Refugee Crisis, to which I have a personal connection

    Heres the link to their article: https://www.nytimes.com/2016/11/05/your-money/a-charity-offers-donors-more-control-over-where-their-funds-go.html

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  4. Dear Jacob,

    I like that you used a different approach to the task but I do not necessarily agree to it. One can not argue about the effectiveness or honesty of an organization when it scores almost perfectly on Charity Navigator. With that in mind. I feel like you played way too safe. I understand you do not have a favorite organization but for example I would rather have donated to an organization that tackles problems in an issue area that you are passionate about or an organization from your hometown etc. While I'm sure Direct Relief would be a great donation, I was looking forward to seeing some personal "bias". But again, heart vs mind argument is one of those rare cases when the truth solely depends on personal opinion.

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  5. Hi Jacob,

    The way you chose which organization to represent for your charity pitch is very respectable; with no organization or cause personally touching to you, you used as much objective opinion as possible to decide. I honestly think that this would have been a great way to make other decisions in class, like which organizations should become finalist organizations for our large grants, but that this would have been too difficult. Even though you weren't able to tell exactly where the money would go, it was reassuring to hear that you picked an organization with a 100.00 overall rating on Charity Navigator, which we learned this semester, is a credible source in determining the validity of a nonprofit organization. After all we have read and learned this semester, I think that the lens of effective altruism is the most appropriate way to find out how one can do the most good in the world, have the greatest positive impact. You said that if we cover the processing fee that this would allow for 100% of our donation to go to charity. Do you know how much that fee is? Additionally, I would like to add that while this organization may be highly credible, I would think that our donation wouldn't go too far since it is such a big organization. I would be curious to see if any of the six crises that you listed are being tended to by another, smaller nonprofit where our donation could stretch a little farther. Overall, I think that your method when looking for a nonprofit to pitch for was fantastic and should be applied more often in the decision making process.

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