Cash Is Best
 

When providing contributed assistance to an international humanitarian response activity, the American Public is encouraged to make a monetary contribution.  The guidance is commonly expressed as Cash Is Best.  The term may appear simplistic to many people and therefore there is opportunity for explanation of some of the questions it entails.  This document will give basic Who, How and Why elements for the guidance.

 

Who

It is not readily evident to many contributors for whom a cash contribution is intended.  Some may think the money will be placed directly into the pockets of the victims.  Some anticipate it will go to the US Government.  Others assume the CIDI will be collecting money.  None of these is correct.  Victims' assistance entails basic needs and not direct cash.  The federal government has money already earmarked for use in humanitarian response activities, and the CIDI has no program and has no mechanism for receiving or distributing publicly donated money.  Instead, the monetary contributions will go to relief professionals working in the field with the disaster victims.

There are many, many recognized US based disaster response agencies.  Some are very large and can be recognized from their timely advertisements on television and publication in print media.  Many are faith-based groups and still others are specialized service groups for unique activities within the relief response activities.  All can have an important role to play in the response and recovery for different sectors of victim need and so the CIDI does not make recommendations of recipient agencies to donors .

 

How

The identity of many disaster and humanitarian relief organizations can be found within the association structure of one of the CIDI partner organizations, InterAction.  InterAction posts activity information for its members that are responding to specific disaster situations.  Contributors are guided to this information and then are expected to identify the organization or organizations with which they are fundamentally and philosophically comfortable.  Then the donor makes the contribution directly to the recipient(s) of choice.  There is no direction by the CIDI in the selection process or the contribution process.  The role of the CIDI is to help contributors find organizations that would benefit from donations, but the actual choice and the process of making the donation is left to the contributors.

 

Why

There are three basic reasons why Cash Is Best

The professional relief agencies use monetary contributions to purchase exactly and specifically what the victims need.  Staff for the organizations work directly with the victims at the disaster site and are in the best position to know not only what is immediately needed, but also when it is needed and where it is most needed.  In addition the experience of the relief workers enables conversion of cash donations into items that withstand cultural and religious sensitivities, as well as environmental issues.

Money is easy to transport.  Moving a container of commodities can incur costs in excess of the value of the items.  Getting a donated commodity into containers and onto a ship, across the sea to the disaster site, through the port costs and the customs' tariffs, quality checked, quantity checked and sorted, and organized into warehouses, requires payment at each step.  Invariably, there are basic needs materials close at hand to a disaster site and purchasing locally provides savings in many ways.

Money used to purchase available items local to the disaster has a double benefit.  First, it provides an infusion of cash which supports the economy at a time when it may be reeling from the effects of the disaster.  It assists in providing confidence and a sense of normalcy as shops and services recover.  Secondly, a container load of commodities placed freely for the use of victims has the negative impact of competing with the recovering, local markets.

 


Center for International Disaster Information
cidi @ cidi.org
hotline: 703-276-1914