Jan. 21, 2010
Haiti had a population under 10 million before the earthquake. The general estimate is that 100,000 are already dead. We know this figure will increase. There will be more bodies discovered. Then will come disease. Infants will die. Let us be conservative and say that the death toll will reach 200,000. That is a loss of 2% of the population.
Add to this another 250,000 injured. Then there are at least 1.5 million homeless -- maybe 15% of the original population.
This is the worst natural disaster per capita in my lifetime, and I am 67 years old. There have been other large catastrophes -- earthquakes in China, Tsunamis, floods -- but not anything like this.
Giving money away wisely is more difficult than spending it wisely. In a free market, there is feedback: positive and negative. Sellers compete against sellers for our money. Waste is eliminated through the profit-and-loss system. Buyers can assess the quality of the services rendered. They pay. They receive. They evaluate.
With charity, there is separation from the donor's costs and the recipients' benefits. There is no way for the donor to measure the benefits, for benefits are subjectively imputed, not objectively measured.
Then there is the question of efficiency. How much waste is there between the donor's bank account and the recipients' benefits? There is no profit-seeking owner here, as there is in a for-profit company. There are entries in accounting programs, but there are in government offices, too. We know better than to believe that there is no waste in civil government just because there are accounting records.
No one wants to waste resources, especially his own resources. What guidelines for giving should we adopt? Here are mine, listed as questions:
1. Who most needs help and is unlikely to get it?
2. How long will the aid last?
3. Will the aid create dependence?
4. How can I be sure that my aid will get used as promised?
I conclude that I should not give money to some large organization like the Red Cross. Why not? Because others will immediately donate to the Red Cross. It's widely known and widely trusted.
I should not give money for immediate food and water. Why not? Because there are tons of donated food and water. The problem is distribution.
I should not give medical supplies. There is a shortage of doctors and nurses: the distribution problem.
I should not give money to the Haitian government. I do not need to explain this.
My church will donate money to the mission it supports. The indigenous missionary has already buried 231 members of the church. Six are missing. Can you imagine this? I can't. But I do not intend to donate to the mission. Several congregations in our denomination will donate.
I have a charity in mind. It is called Sweet Sleep. It provides beds for orphans. It has been doing this for years. It is run on a shoestring. National headquarters is a refurbished garage.
I send a check. I address the letter to Haitian Relief, Sweet Sleep, Post Office Box 40486, Nashville, TN 37204-9998.
There are a lot more orphans in Haiti today. Yes, they could sleep on a dirt floor. A bed is not a life-saving device. But these children have nowhere to go. They have lost everything. Give them something. Give them a bed.
The beds will last for years. My gift keeps on giving.
A bed is a long-run consumer good. When the nation gets to the new normal, and the charity money slows to normal, orphans will still have the beds. I figure my donation gets a long-run return.
I give where others won't. I don't add to what is needed now but will also be supplied soon.
I add to the capital of the orphanage.
Unless the orphanage gets involved in the black market for children's used beds, my money will be used as designated. I don't think there will be a black market for children's used beds.
Will the aid create dependence? No. The dependence already exists: orphans. The aid meets a desire of devastated children: a decent place to sleep until someone offers to adopt them.
This is how I give money away. It takes extra effort, but I get more bang for my bucks.
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