A decision by the OneOrlando fund to distribute money they collected directly to the families and victims impacted by the recent nightclub shooting rather than through charities bears watching. Even while groups are calling for the reducing the use of overhead ratio as a measure of a non-profit’s effectiveness, there is increasing pressure to have money only spent for the purpose for which it was given.
According to the NY Times:
With the move, Orlando is the latest to shift away from established charities and opt for direct donations, a move that has become increasingly common, in part because of questions about how some charities use donations.
[….]
“There have been so many scandals we’ve seen after these sorts of situations, so it is a big deal that they’ve bypassed nonprofits because it shows a distrust in how nonprofits are doing things,” said Stacy Palmer, editor of The Chronicle of Philanthropy. “This sends a big message, too, because other cities might decide to use this as a model in the future.”
Mai Fernandez, executive director of the National Center for Victims of Crime, said Friday that the group, as well as some family members, had told city officials that they feared donations from OneOrlando would not get to victims if a traditional nonprofit was placed in charge.
While the motivation for donating money following a tragedy like Orlando is different from supporting arts performance or education programs, it isn’t beyond reason to think people will expect the same type of accountability from arts organizations. In a sense, smaller non-profits suffer for the poor decisions and scandals of larger non-profits like the Red Cross and United Way.
An individual has a right to be concerned about how their money is being spent, but those individual concerns aggregated across hundreds of individuals can serve to paralyze a non-profit as illustrated in a post by Vu Le from two years ago.
Non-profit organizations need to provide greater transparency and communication to meet the donor expectations of greater accountability. I am not sure how to communicate that there is a lot more involved in providing 6-8 year old kids with the opportunity to paint than just handing them the paint.
Do you include pictures of staff members joyfully buying paints and materials a the local arts and crafts store in your newsletter and donor report? Pictures of staff meeting with teachers to develop a unified curriculum of enriching activities? Readers may automatically gravitate to the pictures of the cute kids painting and ignore those of staff members, but maybe the fact that every hour of painting is backed by five hours of prep will slowly sink in.
In the meantime, I wonder if the committee Orlando is putting together to decide how to distribute the $7 million they have collected won’t also eventually come to realize that there is a lot of work involved in effectively and transparently giving away that amount of money. If they don’t end up paying a dedicated staff to help administer the money, they may end up either subsiding the effort through long volunteer hours or enlisting office staff paid by their own businesses and organizations.