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What can I do? - How to make your donations count

 

We all know the benefits of being generous with our money and donating to charities, and also how this will help charities in their work against corruption. Rather than reiterating these points, we thought that in this blog we would focus on how you can make sure that any donation you give will really make a difference.

To ensure you personally are happy with the donation you make, it's important to do a bit of research on the organisation first. Think about the following questions:

  • Do the issues fit? You should give to the organisations that work on the issues that you're most passionate about and interested in.
  • Do the values fit? You should give to the charities that you feel best fit your values and priorities in terms of how they work, where they work, and why they work that way.
  • At what level do they operate? You should give to groups that you feel are working at the most important level - grassroots, regional, national, or international, and who finds the right balance (in your mind) between doing things on the ground to improve lives and campaigning to change the rules.
  • Are they an accredited organisation? Are they member of the peak-body for development charities like BOND in the UK or ACFID in Australia. Belonging to these organisations means that they subscribe to a set of rules around how money can be used, and often that there’s positive peer pressure on them to adopt policies

If this is the sort of organisation that you want to give to, the next thing is to make sure that you are comfortable that the donation you are giving will really make a difference. The key thing to look for is measurable impact. That’s not just facts and figures, but case studies that show that the organisation’s work is making a change and sustaining that change over a longer period, whether for specific beneficiaries, the environment or through policies.

Some questions you could consider asking the charity are:

  • How will someone's life change because of this donation?
  • What does success look like for the project/initiative that I'm giving to?
  • What real change has this organisation created or enabled in people's lives to date? Can they show it to you?
  • How does this project enable a community to be more self-sufficient and capable so it won't need aid in the future?
  • What does the organisation do to ensure that money won't be corruptly used? What steps will they take if corruption is suspected or found?
  • Have any of your projects failed? Why? Development is risky, and not all projects work. Good organisations recognise this, and are open about the things they’ve done in the past that didn’t work.

While many people are tempted to ask about an organisation’s administration costs, we’ve left this question off the list. This is because asking about why they need to spend so much on admin costs is a little like asking why an airline might be spending so much on safety costs.

Organisations need to spend money on administration to make sure things are done professionally. They need to pay for staff and management (accountability) to make sure your money doesn’t go missing due to corruption. They spend money on communication so you find out how your donations were spent and what difference it made. In the best agencies money also gets puts into research and evaluation to understand what really works in ending poverty.

And, that’s really the question we should be asking: Does it work?

When it comes to ending poverty, we want to fund things that work. Then, once we know they work, we want them to be as cost-effective as they can be, meaning that we get the best possible price for the best possible outcome.

In ending poverty, it’s the difference between asking ‘how much of my money goes to the school I’m funding’, and ‘can the children read and write properly’?

We’ve provided you with some information to get you started on making sure your donations count. Remember that there are 1.4 billion reasons why we should be generous with the money we have and use it to contribute to the movement to end extreme poverty.

Comments

19/10/10 10:29am - Posted By Rich Fleming - Reply to this comment
This is a great piece and needs to get out to the public... Well done guys
19/10/10 2:12pm - Posted By Tam - Reply to this comment
Interesting comment about Admin costs, too. They always annoyed me, but they do have a place; you're right.

Next year, when we do "Live Below the Line" again, is there any chance we could have a charity choice option? I like MSF, myself, but it would be great to say, "the money I'm raising personally goes to this project that I'm passionate about". Bet we'd raise a million...
22/10/10 11:39am - Posted By Dr Tim White - Reply to this comment
It appears lots of questions are raised in this blog. It would be interesting (and probably difficult) to compare different organisations on the life enhancing benefits per $ donated. Maybe a possibility for future GPP work. I would think that research and published high quality peer reviewed journal articles would add significant weighting to their ability to create solutions that will be implementable across significant areas and improve vast numbers of lives.
22/10/10 8:05pm - Posted By Simon Moss - Reply to this comment
Great idea Tim.

In that vein, DfID and AusAID - the UK and Australian government aid agencies - have just released a call out for proposals to develop a series of systematic reviews on aid effectiveness in a range of areas.

So, just like the fantastic systemic reviews in the Lancet and BMJ, hopefully we'll have some on what aid interventions work best in what contexts in the next year or so.
10/01/11 8:56pm - Posted By Holly Morgan - Reply to this comment
Great blog, and wise comments about admin costs.

"It would be interesting (and probably difficult) to compare different organisations on the life enhancing benefits per $ donated. Maybe a possibility for future GPP work. " There's an organisation that started up in 2009 (with branches in the UK, the US and possibly Australia soon) called Giving What We Can that does exactly this! Nearly every other organisation that compares charities does it on the basis of percentage of admin costs, which is a shame because, as you say, this tells us little about the important question: how cost-effective is it (how much good does it do per dollar donated)?

Please take a look at their website (http://www.givingwhatwecan.org/) and spread the word!
08/08/12 7:27am - Posted By nick garringer - Flag as inappropriate - Reply to this comment
if we could all adapt a little the world could change a lot
12/08/12 8:49am - Posted By mohamed - Flag as inappropriate - Reply to this comment
God bless you guys keep up the good work.
27/08/12 8:32am - Posted By KMO - Flag as inappropriate - Reply to this comment
Great list of questions!
20/12/12 3:51am - Posted By Rollsy - Flag as inappropriate - Reply to this comment
Excellent intro to help the average punter participate in something so important. Much appreciated.

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