Beware of Celebrity Trickle Down Charities
UPDATE (01) 01-23-10 AID AGENCIES FIGHTING FOR DONORS
London's Financial Times is reporting ...
"A prominent British medical journal, The Lancet, has accused aid agencies operating in earthquake-ravaged Haiti of using 'unsavoury' corporate tactics as they compete with each other to attract funding during a chaotic relief effort.
"Polluted by the internal power politics and the unsavoury characteristics seen in many big corporations, large aid agencies can be obsessed with raising money through their own appeal efforts,' The Lancet wrote."
It should be noted that the Haiti relief effort may raise funding that will not be used for immediate aid, but to defer the organization's administration expenses for a number of years and be doled out over time -- once the initial impact of the disaster has been remediated. Big charities, like big government, big business, big education, big medicine and big labor are all about promotion of their cause, promotion of their leadership, bureacracy, infrastructure and the funding that supports the whole kit and kaboodle. While they may serve a good and necessary purpose, they often have a highly paid leadership (with perks of office), lawyers, consultants and others who are making a substantial amount of money. Not to mention those who fulfill the aid contracts and provide supplies. Charity only goes so far. Of course, the real heroes can be found at ground level and working with the people ... and they rarely get the credit that they deserve.
Original Blog ...
One of the things that annoys me are celebrity-run charities which are little more than publicity vehicles for the celebrity and/or a way to cover expenses which they would rather not cover with personalfunds. Things like benefits to honor themselves, engineered publicity outings and travel to “see and be seen” events.
But what I find most offensive is that most of these charities simply donate their donor’s money to other charities – thus insuring that the final funds reaching the intended recipients are diluted with another layer of so-called “administrative” expenses.
Far better to the celebrity to perform for or encourage donations to the charity which actually performs “on the ground” good works and eliminate unnecessary costs.
Lest the reader be considered naive, I am here to tell you that most charitable benefits – especially those which provide some form of award (usually as “man of the year,” etc.) are often bought and paid for by the celebrity or their business sponsors (e.g. studios or corporations) by either a direct donation or, less crassly, by underwriting the event’s expenses for the night.
I have personally participated in charitable events where the award was determined solely by who could draw the most attention, give the biggest personal donation and whose organization would underwrite the expenses of the event. Side considerations included how many people or associated companies would be willing to purchase tables, ads in the handout “remembrance” book or provide gifts and other giveaways for celebrity participants. Then there are those who donate “in kind” non-monetary gifts in return for the benefit of being associated with the celebrity, the charity or “doing good works.” Of course, the benefit committee and sponsors are likely to be stacked with recognizable names who may have little or nothing to do with the evening (like politicians) but who may be useful in promoting the event.
Make no mistake, the competition for headliners and big donors is fierce – especially in these economically challenging times.
One of the most serious concerns of a A-list event is attracting the “right people” who may become interested in the cause. And, of course, minimizing the appearance of “wow, gee whiz hicks” who may have the money to attend the event, but whose presence may be problematical for the celebrities and other guests.
Charity, like all other ventures, is somewhat of a business and should be regarded as such. Therefore, if you wish to give, I strongly suggest that you find an organization that is already doing work in your area of interest, has a verifiable track record and who administrative costs are not more than 10% of the money collected.
I am all for charitable giving and humanitarian aid – but it needs to be cost effective, delivered to those in need and secured from those who wish to steal it or convert it for their own use to enhance their power base. (Example: thuggish politicians stockpiling aid and then doling it out for money or votes.)
Give generously, according to your budget, but give wisely. Remember that there are always self-serving silly celebrities whose foundations are nothing more than an adjunct to their publicity machine. Avoid them like the plague.
-- steve
Reference Links ...
- Wyclef Revamps Charity
- After 'mistakes
"Despite charges of shady expenditures, Wyclef Jean's charity, Yele Haiti, is staying alive. On Friday, the singer announced that the charity would appoint a new accountant, RSM McGladrey, to make sure its donations were going directly to earthquake relief. The charity came under scrutiny after the disaster when tax records showed a number of payments had gone to companies controlled by Jean and other board members. The charity's president, Hugh Locke, has announced that such payments will no longer be allowed in an effort to regain credibility."
"Hugh Locke, president of Yele Haiti, said in an interview Friday that, in most cases, the charity will no longer permit transactions with businesses in which board members have a personal stake. Some exceptions might be made, Locke said, but only with the approval of a board that now includes two lawyers as well as Jean, his cousin and fellow Fugees member Jerry Duplessis, and another business associate of Jean's." <This is what is commonly known as a "stacked" or "rubber stamp" board due to the lack of real independence of action.>
"Yele might spend as much as $5 million for earthquake relief, much of it in partnership with other non-governmental organizations in Haiti, Locke said. It also will make cash donations to smaller charities that don't attract as many donors, he added."
“Nullius in verba.”-- take nobody's word for it!
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell “Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar “Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS