Disasters and Donations- Red Cross Bali Experience

In response to damaging headlines and damning talk back radio discussions the Australian Red Cross has made transparency its number one priority in revealing the financial facts surround its Bali Appeal after criticism over alleged delays in distributing $15 million in donations.

Coinciding with the first anniversary of the Bali bombing the organisation has delivered a five-page dossier updating the public on its commitment to help the Australian victims and their families and the people of Bali; offering chapter and verse on how donations have been spent so far!

This case and other like it raise a number of important issues for all Not for Profits including how much information does a charity owe its donors, the relationship between fundraising and prudent spending and the role of the media.

Whatever your opinion this a cut down version of the document that the Australian Red Cross made available to the public.

THE FACTS & FINANCES: AUSTRALIAN RED CROSS BALI APPEAL
(as at end September 2003)
1 BALI APPEAL FUND
The Australian Red Cross Bali Appeal Fund helps Australian victims and their families, and the people of Bali, cope with the tremendous loss and human suffering caused as a result of the devastating bombings. This commitment was announced at the outset of the appeal. Australian Red Cross has not wavered from this commitment. On 16 October 2002 Australian Red Cross announced the appeal would:
– Assist victims in Australia and their families; and
– Assist the Red Cross to continue its work to provide relief, dressing and medical supplies in the affected area in Bali; as well as to cover future needs including recovery and reconstruction.
2 assistance TO DATE
Since the launch of the Bali Appeal, Australian Red Cross has provided financial assistance on 1,637 occasions to assist a total of 546 Australians affected by the tragedy. We are also implementing several programs to assist the people of Bali. These include programs to reinforce emergency and health services, as well as medical and livelihood assistance.
3 BALI APPEAL FUND donations
As at end September 2003, the Bali Appeal received a total of $15.3 million up from $15.1 million as at end August 2003. This total consists of direct donations as well as bank interest.
The public donated a total of $7.8 million (51%), the corporate sector a total of $3.9 million (25%), Federal, State and local Governments a total of $2.7 million (18%). Other contributions totalling $0.7 million (5%)were received from various donations via International Red Cross Societies and Australian Red Cross branches and units. Income from bank interest was a total of $0.2 million (1%).
4 BALI APPEAL FUND ALLOCATIONS
Out of the $15.3 million received by the Bali Appeal as at end September 2003, $11.2 million (73%) has been allocated to Australia, $3.6 million (24%) to Bali and $0.5 (3%) for administration (to date $0.4 million has been spent on administration).
5 total ASSISTANCE IN AUSTRALIA
Out of the $11.2 million allocated to Australia, $10.4 million (93%) of funds has been spent or is in the process of being spent on direct financial aid to victims and their families; $0.3 million (3%) to provide client support, referral and advocacy to victims and $0.5 million (4%) towards two Australian projects associated with the tragedy.
A total of approximately *$0.3 million remains from the initial allocation for the Disaster Preparedness project, and has not been reallocated as yet. (*Funds totalling $29,200 allocated to Bali Hati for the Family Memorial Program has been drawn from the contingency fund). Australian Red Cross will make public announcements in relation to these remaining funds in the future.

If you would like the complete five page breakdown of funding allocation just send us an email to probono@probonoaustralia.com.au

The Asia Pacific Centre for Philanthropy and Social Investment is hosting a seminar in Melbourne in November to discuss “Disasters and Donations”. The Secretary General of the Red Cross, Martine Letts will also take part in the discussion.

Where: Mallesons Stephen Jaques, Level 28, Rialto 525 Collins Street, Melbourne
When: 5.30pm Tuesday 11 November 2003

If you would like more information and a registration form just send us an email to probono@probonoaustralia.com.au.