During critical situations, such as natural disasters, global health and humanitarian crises or conflicts, philanthropists have the agility and flexibility to help in ways that others cannot. In addition to responding immediately when an incident occurs, you can take a longer view to fully understand the scope of the problem(s), identify where you can have the greatest impact and how to best use your resources to amplify established efforts and other large-scale systems.
To help you contemplate how you may want to get involved in disaster philanthropy, here are five things to consider and resources to start or deepen your involvement.
#1: Understanding The Disaster Lifecycle
Before you decide how to give (i.e. which approaches or vehicles to use), it’s important to first understand that there are several stages of disaster and crisis response. By directing funds across the lifecycle, you may be able to achieve greater impact with your assets and reduce the likelihood of recurrence while also aligning your response with your values and giving priorities.
According to the Center for Disaster Philanthropy, there are some key stages in responding effectively to critical situations.
- Response and Relief– the stage during or immediately following an emergency.
- Reconstruction and Recovery– the stage after damage has been assessed, including longer-term efforts to restore a community or country to pre-disaster state.
- Mitigation – more strategic work designed to cure factors leading or contributing to emergencies and limit the impact of similar events in the future.
- Preparedness – another strategic phase, involving detailed plans that will help people and areas respond effectively to disasters or crises.
For more information on disaster phases, click here.
#2: Emergency Giving Thru Private Foundations & Donor-Advised Funds
Charitable vehicles like private foundations and donor-advised funds can play pivotal roles, especially in supporting the long process of recovery. When search and rescue efforts have concluded and the physical sites have been deemed safe, communities try to return to their lives. They will need support from local and international nonprofits to get back on their feet. One-time grants can be enormously useful in these situations, while ongoing grant support is even more valuable.
Emergencies are an especially good time for donor-advised funds (DAFs) to grant out balances that are already allocated for charitable purposes but haven’t yet gone on to a charity.
#3: Resources To Evaluate Charities
There are more than 1.5 million nonprofit organizations in the U.S. and many more throughout the world. New charities are created every day to drive impact in different ways and respond to emerging issues, as well as unexpected disasters or crises. These organizations vary widely in terms of focus, leadership, infrastructure and effectiveness, which is why it’s important to have proven ways of evaluating them and taking the time to do your research before providing support. Here are some tools to help you understand how charities operate, how they use their budget and what kind of results they deliver to make sure you’re using your charitable money wisely.
- Charity Navigator:
Explore charities by cause or user-set criteria and view their ratings across four dimensions – impact & measurement, accountability & finance, culture & community and leadership & adaptability. - GuideStar:
Use GuideStar to look up a nonprofit and access the most complete data including contact information, current-year revenue and expense, key leadership roles and recent tax filings. - CharityWatch:
An independent US-based charity watchdog that conducts analysis to predict efficiency, expose nonprofit abuses and advocate for the interests of the donating public.
International Organizations
There are also international organizations like the International Committee of the Red Cross , World Central Kitchen, and Doctors Without Borders that are virtually always on the ground. They are good resources for timely information about what’s happening in a location. Remember that the value of these organizations is not just about providing support—it’s also about the news and timely updates they can provide because they’re regularly involved.
National Philanthropy Serving Organizations and Regional Grantmaking Associations
Another good first step to take following an emergency is to turn to other people and organizations who are already involved in disaster philanthropy. Philanthropy Serving Organizations (PSOs) such as the Council on Foundations and The Philanthropy Roundtable as well as Regional Grantmaking Associations such as the United Philanthropy Forum and its many regional members already have a built-in network that can provide timely, local updates—and help highlight where there are needs that aren’t being addressed.
#4: Good To Know: Tips to Avoid Scams
Did you know the incidents of fraudulent charities increase after a disaster? Protect yourself and ensure your funds are going where they’re needed. Here are some resources to help you plan your donations and avoid scams.
- Tips from the FTC: Donating Safely and Avoiding Scams
- Insights from the FBI: Charity and Disaster Fraud
- Recommendations from the IRS: Donate Carefully After a Disaster To Avoid Scams
#5 Foundation Source Resources & Thought Leaders In the Media
GrantSafe®: Public Charity Verification
Visit our website to check out GrantSafe, a free, easy-to-use tool that helps you check the tax-exempt status of a charity before making a gift. It’s connected to the IRS database to ensure that the organization you’re thinking about granting to is in good status.
Tips on How and When to Donate During a Humanitarian Crisis
Our Head of Philanthropic Advisory Services Elizabeth Wong contributed an article in Kiplinger to explore how donating to long-term recovery efforts could be an even bigger help than giving immediately after a crisis begins.
Advisors Need to Prepare Clients For Extreme Weather Events
Foundation Source’s Chief Marketing Officer Hannah Shaw Grove shares her insights in Barron’s Advisor on how protecting assets from natural calamities may include a philanthropic component.
Additional Resources For Disaster Relief
Providing Assistance Through Charitable Organizations is an extensive paper from the IRS Tax Exempt and Government Entities Division with information about assisting victims of disasters or those in emergency hardship situations through tax-exempt charities.
Interested in other conversations around disaster philanthropy?
Check out our roundtable discussion with subject matter experts to learn about the Best Practices & Innovations for Strategic Giving in Times of Crisis.
*Foundation Source does not evaluate or endorse charitable organizations or provide guidance on where or how much to donate.
