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Raising hope for Haiti

Melanie Stern, Financial Director, 22 Feb 2010

Behind the media frenzy of record-breaking donations and titanic NGO operations, UK charity FDs manage through various obstacles to mobilising cash, keeping the books and planning for long-term rebuilding

The utter devastation suffered by Haitian citizens after the 7.0 magnitude earthquake that struck on 12 January rendered the biggest humanitarian response ever recorded, reports claim. No ballpark figures yet exist, but several billions in individual donations combined with government gifts and a raft of large celebrity cheque signings amassed unprecedented sums, all within days of the event.

Getting it into the country in those first few days, though, proved impossible. Most of Haiti’s infrastructure and banking system are out of action; roads are decimated by mudslides or mountains of rubble from the estimated 280,000 collapsed or badly damaged homes and commercial buildings. And what use is a single dollar bill in a place where the markets, their suppliers and the ports allowing essential imported goods in are destroyed ­ while their proprietors may be among the estimated one million homeless, or the 530,000 dead or injured?

In fact, due to the level of disturbance, the response from UK charities to these challenges was quite literally to bundle up thousands of pounds and wire it to Haiti through neighbouring Dominican Republic. Vicky Annis, head of finance at medical charity Merlin, explains that her team of 12 finance staff had to do just that from its central London headquarters. “It has been quite literally a case of three or four members of my finance team taking £3,000 in cash down to our local Western Union several times a day,” she reveals. “It’s enormously time consuming.” Merlin was one of the first charities that had no previous business in Haiti to land there after the disaster.

David Membrey, acting chief executive at the Charity Finance Directors’ Group, confirms this has been practice elsewhere. “I know in the case of the 2004 tsunami that some charities, in the weeks after the event, were literally sending staff out with rucksacks full of dollars,” he says. “The destruction was so wide there that you could be on a project where there might not be a working bank for a 100 miles. It’s not a long-term solution but it’s a practical one.”

Faith-based charity Cafod’s head of finance James Steel has to employ his skills of persuasion and pull in help from around the business to cover sudden need from finance. Cafod has a financial accounts team, a financial management team and a humanitarian finance team, he explains, as well as donation processing people to call on if it needs extra hands.

Charity FDs say they were not hit with the response for Haiti until between 72 hours and the first week after the event, once trustees and directors (including the FDs) had decided on their level of response. Says Steel: “In early February, while Haiti was going on, we had external auditors going through what we’d done in Southern Sudan and Mozambique with a toothcomb. You’ve got to balance that over the life of a response to something like Haiti,” he says. “It brings a level of complexity into the organisation.”

In and out
While the process of getting money in the door is now automated thanks to online and text donations, FDs in even large charities found themselves struggling to upscale dramatically in the first days after Haiti to get it out again. It meant diverting finance staff from modest teams away from their usual duties, diverting funds to hire temporary staff or persuading other managers to get their non-finance volunteers mucking in.

“This office was full of volunteers processing credit cards on the weekend, because suddenly we had this massive surge and we had no time to plan around it,” says Joe Ghandhi, head of finance for Médicins Sans Frontières UK. “I was ringing our 0800 number first thing every morning to test the response time and some of our country websites had real bandwidth issues, so we had to switch things around.” MSF already had around 800 staff in the field on a long-term programme.

Cafod’s Steel concurs. “In the 2004 tsunami appeal we couldn’t change the message on our freephone donation number. It was Boxing Day and I was in the office trying to change it, but we couldn’t get hold of anyone,” he says.

Charity FDs are learning valuable lessons around how to plan for these problems that really hamper the increasingly common emergency responses they have to make.


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