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A need for more transparency at nonprofits

A recent story in Business Weekly about the "Peach Grandma" -- a poor peach farmer burdened with raising seven grandchildren -- prompted many people to donate to an account set up by the newspaper, thinking that their money would go to the woman they had read about.

But a controversy erupted over the revelation that much of the money went to other social causes, not to the woman.

This sparked discussion in newspapers about social problems that lead to poverty. There was also discussion about the myths surrounding charity.

But all the discussions overlooked one important point regarding the monitoring and use of donations: More education is needed to inform the public about social issues, particularly concerning charitable organizations.

The money collected following the peach farmer story, or that raised following an earlier report about the Chang brothers, who suffered from adrenoleukodystrophy, highlighted our society's capacity for compassion.

Yet the controversy that ensued exposed a serious problem with the supervision of donations, which risks causing the public to lose faith in charitable drives and nonprofit organizations.

The Chang family, living in Kaohsiung, received tens of millions of NT dollars within a few days. But other Taiwanese patients with the same genetic disorder -- widely publicized in the movie Lorenzo's Oil -- did not benefit, simply because they had not received media publicity.

Next, as was mentioned in some editorials, the case of the peach farmer was not unusual. A grandmother raising her grandchildren unaided is not uncommon among financially disadvantaged households.

If the donations are given to just one needy person, we are not combating the root of the problem.

Raising funds is a difficult task. Employing the money in such a way as to most effectively benefit a large number of needy households is even harder. Collecting financial resources is only the beginning of a charity's work.

Planning and executing projects are even more important for resolving social problems.

Unfortunately, too many Taiwanese foundations lack professional social workers and experience working directly with communities. The few experienced administrators at those foundations are struggling to plan and execute charitable programs.

Overseas, large nonprofits such as the Rockefeller Foundation and the Ford Foundation raise hundreds of millions of US dollars every year. To use the money effectively, they have elaborate management systems with experienced personnel planning and orchestrating long-term projects.

They act as grant givers themselves, accepting applications from smaller social groups to fund their projects. They fund everything from cultural programs to disaster relief to scholarships, and their subsidies are generous enough for a youth shelter to operate for a year.

This is similar to the method used by the United Way of Taiwan. It provides assistance to smaller organizations that are incapable of raising sufficient funds.

Research by the famous Indian Nobel Prize-winning economist Amartya Sen showed that the continuing hunger problem in India was not a result of insufficient food.

Instead, the problems are rooted in inefficient food distribution to victims of famine, as well as social problems. The delivery and implementation of disaster relief were also problematic, Sen found. Thus, India's hunger is not simply an issue of resources.

Today, Taiwan is facing similar difficulties. A charitable civil society and sense of social responsibility on the part of businesses has begun to blossom, but a lack of experience and understanding of how to make donations work must be addressed.

Nonprofits must make efficiency, credibility, accountability and integrity their top priorities. The public must also learn to take note of whether nonprofits are officially registered and pay more attention to their methods and goals. Social welfare groups must also publish annual reports detailing how donations were used.

Only when social welfare groups exercise self-discipline and are properly monitored can civil society grow strong.

Karleen Chiu is an assistant professor at the Department of Social Welfare at Chinese Culture University.

Translated by Eddy Chang
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