Dolla Dolla bills y'all

According to this NYTimes article, NY State Attorney General Eric Schniederman is questioning why so much of the money raised in response to SuperStorm Sandy remains unspent. While the article talks about why non-profit agencies and organizations have yet to spend/allocate all of the money received in response to the plea for financial support following Sandy, what it also does is highlight the mentality people have around money and disasters—a touchy subject to be sure.

The message being pushed when a disaster strikes is that 'cash is king,' that your dollars are far more valuable than a tractor-trailer of unsorted, used clothing. While a donation of your old clothing sound like a good idea in theory, in reality, it isn’t and I've seen firsthand the unintended impact of how those donations can do more harm than good. Money is good because it's flexible, requires little in the way of logistics and personnel to manage it, and can respond to dynamic post-disaster needs that shift every 24-48 hours. Once an organization starts receiving donations however, everyone has ideas on how that money could/should be spent. 

Some organizations tout their ability to turn your donations into goods and services on the ground quickly, those groups are often criticized because many question whether due diligence is undertaken to ensure that the dollars are being spent on those who truly need it. Then there are those organizations/groups who hold off on spending donations they receive, citing the need to wait and see what happens when the dust settles, they are criticized for not being responsive enough and for lacking transparency. 

It seems that even with the best intentions at heart, someone, somewhere isn't going to like how you're doing things and take you to task for it. So what's right when it comes to spending: fast and furious or slow and cautious? The answer that I've found is a healthy mix of both.

The Robin Hood Foundation awarded over $60 Million dollars following the 12.12.12 concert for Sandy Relief to local and national organizations, and did so in record time. The rationale being that they were just the name, they didn’t have the “do” capacity to spend the money on response and recovery activities, so why hold onto it? While the money was awarded to a wide variety of agencies and organizations, Robin Hood still drew criticism that they were spending the money too quickly and not being thoughtful enough about who it went to and whether some should be held for longer-term community needs.

On the flipside, as the NY Times article expounds upon, there are questions about the millions the Red Cross raised and why it hasn't been spent; but local groups aren’t immune either, groups like Occupy Sandy are feeling the heat as well. They have money in the coffers but are looking to see how far FEMA, insurance, and any additional financial assistance individuals, businesses, and the communities as a whole receive before applying their additional financial resources. Unfortunately, the thoughtful approach is rarely seen as thoughtful, it’s seen more as deceitful and usually draws harsh criticism. 

The bottom line where money is concerned is everyone will have an opinion: it's being spent too fast, it’s not being spent fast enough, it’s not being spent on the right things, etc. This butting of heads is unavoidable but the discussion it generates is central to holistic community recovery, and I believe that part of that discussion should focus on a greater degree of transparency around how donated dollars are being spent, not on the rate of expenditure.

This NewsOK article illustrates a great example of what it means to lose sight of where the donations are going. Following the Moore, OK tornadoes, a Red Cross text to give campaign raised several million dollars and Donors believed all of the money received via that campaign would be funneled to the recovery efforts—this was not entirely true and it was only after considerable pressure that this became the case. 

If we as a community of practice are going to encourage individuals to donate money to our organizations instead of giving clothing, then we have an obligation to show donors how their money is being spent in simple, unfettered terms. At the same time, those of you who donate money need to do your homework and understand that if you do not expressly communicate where your donation is to go, that organizations will apply it to their greatest need at that time or put it toward their general fund. While the debate over the ethics of such actions is heated, it’s common practice and you should be aware of it.

Just as important as educating and communicating with donors, is ensuring community leaders get a crash course in disaster economics before they have to go through it. Part of our jobs in promoting community resilience is to work harder on the front end so that when something does happen there is a familiarity with the process and expectations that will be placed upon them as it relates to the financial side of recovery efforts.

While the road to recovery is a long and bumpy one, educating donors and communities alike on the financial realities and timetables that come with building back better needs to take place. While you will never satisfy all of the people all of the time, working to educate around the realities communities will face can only help everyone in the long run.

So where exactly did all of the Sandy money go?

Yesterday I posted about the massive $1.4 Million grant that Presbyterian Disaster Assistance received and the questions I have surrounding the award and how the public can measure the return on that investment. This morning I came across an article from Mother Jones covering similar issues, specifically: "What Happened To The Money Occupy Sandy Raised?"

The article examines a growing discontent over how some organizations, specifically Occupy Sandy, have, through a perceived lack of transparency and community inclusion, not been honest about how the remainder of Sandy donations are going to be dispersed, when, and to whom on the Rockaway Peninsula. 

A Train service restored to Rockaway Peninsula (AP Photo/Seth Wenig)

The article also points out that there is no clear picture of how the money that has been raised by Occupy Sandy has been spent; this is due to a lack of tracking and documentation, an oversight that almost every spontaneous group succumbs to in the craziness of response and something that needs to addressed as a part of community preparedness moving forward.

What’s happening in the mid-Atlantic region is a shift from response to recovery, and with that the recognition that the coffers that were once brimming with an unprecedented number of donations from individuals, groups, and foundations, are now beginning to run low. Coupled with this dip is the understanding that beyond federal funding for beach restoration and mitigation projects, remains a list of projects that need time, attention, and most of all…money.

What this is creating is a catch-22 situation that centers on the idea of fiduciary stewardship. Throwing money off the back of the proverbial truck just because you have it and are being pressured to spend it, isn't the right approach...those who get it will be happy, those who don't will vilify you for not doing your due diligence in identifying the best way to stretch the limited dollars that are left. Yet the longer you hold onto the funds to identify innovative ways to stretch the remaining cash to impact as many people as possible, the more people scream about secrecy and exclusionary practices.

This catch 22 is fueled by the idea that your mission and operational focus is the most important and as such, you should be given the money to continue your work--given this rationale, satisfying everyone isn't possible. So in that regard, I can see why Occupy is taking their time, because once that money is gone…it’s gone, so why not take the time needed to ensure that it goes as far as possible and advances the recovery of as many as possible. Occupy Sandy's actions to this point give me no reason to believe that they will do anything other than what they’ve stated, which is transition the funding to local groups in the best, most responsible way possible (that’s me paraphrasing).

However, Occupy Sandy doesn’t get off scot-free. I believe those individuals and organizations that are dissatisfied with the lack of transparency and communication around how the remaining funds are to be spent and when, have every right to be vocal about their discontent. Saying inflammatory statements however is counter-productive and discredits the work that has been accomplished because you disagree with how long its taking to disperse money: 

“ If Occupy Sandy doesn't tell the Rockaways community how it plans to spend the rest of the money, I personally believe they have outstayed their welcome.” (see linked article for context) 

What many fail to recognize is that before the storm made landfall, Occupy Sandy didn’t exist; just like the other hundred or so groups that came about to solve community problems caused/exacerbated by the storm. While I appreciate the scrutiny being applied to Occupy in an effort to "keep them honest," lets not forget about the army of established non-profit organizations that came to the area and received significant donations as well. I haven't seen one article asking for an accounting of where/how those groups spent their donations and their the ones who are supposed to be model for how groups like Occupy Sandy learn to do response better. It would be interesting to put the same resources and scrutiny applied to Occupy Sandy to some of the more established disaster response non-profits who responded and compare and contrast findings.

All that to say, Occupy Sandy, get a plan for how you intend to spend the remaining money and publish an accounting of what you've spent and where thus far…if you don’t know, then tell us…you're not the first Spontaneous organization to be overwhelmed and not put the effort needed into tracking and documenting donations, and you won't be the last. And for those who are demanding answers, good for you…but remember that there are other organizations out there with track records of disaster response who also received copious amounts of donor dollars flying under the radar, why not ask for an accounting of their donations received vs. dollars spent on community programming...you might be surprised by what you find. 

A Lesson in Sharing

We talk about learning from the past so that we don't make the same mistakes in the future, systems are setup to help facilitate the sharing of lessons learned...but how effective are we at actually sharing?

How many of you know what LLIS.gov is? More importantly, how many of you actually have access to it? That repository of information is an example of a body of "best practice" that sits under-utilized due to access issues. LLIS is the "Lessons Learned Information Sharing site hosted by DHS. Lessons learned do no good when they're locked away...especially when there are communities out there thirsty for information; for better or worse, the sharing of what we do needs to be done better.

Lessons tend to be shared at conferences amongst smaller groups of people who have a lot of the same experiences and knowledge base. Given the variety of individuals who are getting involved at a local level and the growth of local actors in response activities, the need to know what's working and especially what isn't, has to be pushed out on a broader scale. The folks at Occupy have created a mini-documentary chronicling what worked and didn't and I would imagine that based on the success of their operations, many will watch and try to replicate what they did when a disaster strikes in their community. By Occupy chronicling what they did, how they did it, and intentionally pushing it out to the world, they are taking a more aggressive approach to transparency then I've seen the response community do in the past. And while it may not be perfect, I imagine it will be honest, straightforward and will resonate with those would-be responders in communities preparing for the next event.

I look forward to watching the full length production from Occupy and am hopeful that it isn't a prescriptive "how to" video but more of a chronicle of their experiences for others to learn from. Either way, I think the sharing of this information is a step in the right direction and hope that it spurs conversations about how it can be done better by more people in all facets of disaster.