AmeriCares: A Charitable Non-Governmental Organization - Case Study Example

AmeriCares – A Charitable Non-Governmental Organization Introduction An international charity Non-Governmental Organisation (NGO) is an organisation that functions globally and provides assistance without regard to race, creed or geographical location. It provides assistance whenever its services are needed. As a charity organisation, an NGO has to render assistance to the poor and the needy. NGOs are associations organised for humanitarian purposes and not for profit. For rendering humanitarian work, an NGO receives some incentives from the government where it is incorporated and registered, such as exemption from tax payments or concessions from the government. A not-for-profit organisation is created not for the purpose of trading, manufacturing or trading in order to gain some profits from its dealings. Although a charity organisation is organised not-for-profit, it can undertake some activities that have the semblance of a commercial transaction. Thus, it can sell items, just like business firms, but it would be exempt from the taxes that could normally be imposed for the gains in the said selling because its purpose is to raise funds for humanitarian cause. One such charity NGO is AmeriCares. It is registered and incorporated in the USA and renders service nationally and internationally. Its home office and address is located at 88 Hamilton Avenue, Stamford, Connecticut, USA (Reuters Foundation 2007). It provides assistance based on its expertise in the following lines: emergencies, food and nutrition, health, refugees and IDPs (Reuters Foundation 2007). It accepts donations from individuals, associations, the private sector, and government and private sectors (Reuters Foundation 2007) to support its logistical cause and humanitarian cause. Literature Review Non-Governmental Organizations or NGOs refer to entities that offer varied assistance to people or ethnic groups. It is a privately organized and managed association whose ultimate goal is the alleviation of the people’s condition. The assistance may take various forms, such as teaching, advocacy, helping people organize themselves, livelihood assistance, disaster and calamity assistance, etc. According to Kofi Annan, Secretary-General of the United Nations (UN), in order to appropriately address the agenda of the UN, establishing a partnership with the civil society is not an alternative but a need (Department 2005). The Department of Information of the UN defines an NGO as “not-for-profit, voluntary citizen’s group, which is organized on a local, national or international level to address issues in support of the public good” (Department 2005). The UN Department of Public Information (DPI) (2005, para. 1) enumerates its various services to include “humanitarian functions, bring citizens’ concerns to Governments, monitor policy and programme implementation, and encourage participation of civil society stakeholders at the community level.” They also render “analysis and expertise” and assist in the monitoring and implementation of international agreements (Department 2005, para. 1). As of the year 2005, there are 1,500 NGOs associated and registered with the UN DPI and collaborate with UN activities and agenda (Department 2005). NGO can refer to a wide category of associations that possess the following attributes: a) “not created to generate personal profit” (The Commission 2000) although they may have paid employees, b) “engage in revenue-generating activities” but not “distribute the profits or surpluses to members or management,” c) “NGOs are voluntary” and participation in the organisation is likewise voluntary, d) “NGOs are distinguished from informal or ad hoc groups by having some degree of formal or institutional existence,” e) they have “statutes or other governing document setting out their mission, objectives and scope,” f) “they are accountable to their members and donors,” and g) they are “independent, in particular of government and other public authorities and of political parties or commercial organisations” (The Commission 2000). The advocacy of NGOs vary and usually, an organization focuses only on a particular concern. Therefore, there may be an organization devoted to protection of the environment, for alleviation of poverty in third world countries, assistance to HIV or AIDS victims, assistance to tuberculosis infested areas, relief operations to disaster-stricken areas, providing shelter through various methods, protection of women and children, and other concerns. NGOs also vary in its place of operation that may depend also on the available budget. Thus, some NGOs may operate locally, focusing mainly on the local concerns of the inhabitants of the place, while others may have national and international status that they can work anywhere within a country, or any place around the globe. Usually, NGOs are organized not financial gain and may include a broad range of organizations (NonProfitExpert.com 2008). The global governance report of the United Nations in 1995 revealed an estimate of 29,000 international NGOs (NonProfitExpert.com 2008). The NGOs in the US is estimated at 2 million while Russia has around 65,000 NGOs (NonProfitExpert.com 2008). The largest NGOs for humanitarian purposes are the International Red Cross and Red Crescent Movement (NonProfitExpert.com 2008). In India, there was evidence of “gross mismanagement of funds” by NGOs (The Tribune 2003, para. 2). Although classified as charity and qualified for tax exemptions, in reality, these NGOs serve their ulterior motives by “seeking money from people and taking concessions from the government” (The Tribune 2003, para. 1). For instance, the Vigilance Cell of CAPART (an independent body under the Ministry of Rural Development) which has cracked down a Haryana-based NGO activist running 20 NGOs, revealed that he was able to get a large chunk of money by soliciting funds for “similar projects from several funding agencies simultaneously” (The Tribune 2003, para. 7). As a result of flagrant misappropriation of funds, funding institutions stepped up their monitoring of the projects, while the government has blacklisted hundreds of NGOs (The Tribune 2003). Surveys also revealed that around 85 percent of NGOs in India do not have a vision (The Tribune 2003). Abuse by certain individuals hiding behind the cloak of an NGO abound and can be exposed by in-depth investigations. These NGOs are organised not to help people but to serve as a tool for the enrichment of a few individuals. Analysis A charitable NGO is one that provides assistance in whatever form to people in distress, victims of calamity or disasters or wars, afflicted with sickness, plagued with hunger, or simply people in need. A humanitarian NGO similarly provides the above services, thus, is of the same nature as a charitable NGO. NGOs are classified according to their specific objectives. It would be impossible for an organisation to perform all types of humanitarian work and therefore must concentrate on its specific line of work in order to fully deliver whatever it aims to do. It is fortunate that thousands of individuals group themselves to work on specific advocacies that cover a wide range of humanitarian work. An important element for an NGO to exist and deliver services is funding. Thus, there is a need for it to solicit and accept donations from business firms, other organisations, the government and the private sector. It must also be financially accountable and render proper accounting of all its expenses and transactions to make sure that the donations are used according to its purposes and no individual will misappropriate the funds unscrupulously. AmeriCares has been able to maintain its financial liquidity by keeping a positive balance of its funds. As of the fiscal year ending in June 30, 2006 indicated in Table 2, AmeriCares has an asset of $234,945,955.00 and liability of $20,529,365.00, yielding a positive balance of $214,416,590.00 (Network 2008). This means that it is financially viable and capable of conducting its operations. It is important though that resources must be well managed and avoid incurring expenses that would be in excess of what is currently available. Of course, any organisation engaged in huge transactions must have a complement of regular staff, officers, accountants and auditors who will make transparent financial reports, besides the volunteers, who must receive remuneration. They devote all their time for the humanitarian cause of the organisation and should be given compensation in order to survive. Otherwise, they will not be able to fully serve in the organisation if they have to work for a living elsewhere. Efficiency in the delivery of services builds the reputation and integrity of an NGO. Being consistent in providing for the needy enables an NGO to have a name in arena. This helps the organisation achieve a status nationally and internationally that further enhances its credibility. As a result, more civic-minded individuals, firms or institutions would be willing to provide financial and material resources that the NGO could use. Moreover, a respectable humanitarian status will encourage more individuals to render voluntary work for the organisation. Another important element for an NGO to function more efficiently is to establish networking and partnership with other NGOs, associations, governments, business firms and the private sector. In this manner, there would be a ready source of resources and manpower. For instance, providing a medical clinic would require the services of volunteer physicians and nurses. Medicines required for such mission can be provided for free by pharmaceutical firms. In shelter renovation, since labor is crucial to this project, tapping the generous heart of people from service groups, churches and other associations is an important ingredient for the attainment of the purpose, as in the AmeriCares home project in Fairfield Country. Through voluntary labor, more can be achieved by an NGO without having to spend more money. Although a response to a calamity is immediately needed, planning of an activity should also be undertaken. This would include knowing the needs of the victims, the available materials that could be immediately dispatched, the funding that could be used for the initial dispatch, the entities that could receive the donations in the disaster area, and the available manpower. Manpower mobilisation is necessary for the immediate dispatch of resources and solicitation of funds and donations from other sectors. Lastly, dedication and belief in the cause must be the driving and motivating force of the staff and officers of a charitable organisation. A work for humanitarian cause requires long-time commitment. It is therefore necessary that the officers and members of the organisation have ingrained inherent desire to help other people. The officers and members might receive remuneration or compensation for rendering service in the organisation which they need in order to survive. But such remuneration should only be incidental and not their main objective for joining the organisation. Otherwise, they will be burned-out with the work and ultimately leave the organisation. They must have a generous heart and compassionate attitude towards the poor and the needy. An NGO should really work for humanitarian cause. Using it for financial gain, as what happened in India, is abhorable and unethical. Donations given to NGOs, as a channel and medium to serve the poor, should be utilised to alleviate the plight of the people in distress. Misappropriating the money for personal use is not only stealing money, but is tantamount to killing the people who would be deprived of the assistance they badly need. A blanket could save the life of an earthquake victim during the winter season. An antibiotic could save the life of a tsunami victim from infection. AmeriCares – Its Programmes, Activities and Others AmeriCares is an NGO impressed with integrity, prompt assistance, and passionate dedication to work (AmeriCares-Our Model 2008) and has rendered aid, especially medicines and medical supplies to distressed people for 25 years (AmeriCares n.d.). It delivers medicine and relief goods and provides health care to the needy, and to achieve this, it established an efficient partnership with other organizations and adopted an effective auditing system (AmeriCares-Our Model 2008). It was granted the Lifetime Achievement Award during the FREDDIE Awards (equivalent of “Oscar” in health and medical sphere) in Philadelphia and ranked highly by institutions and journals, as well as private ranking entities (AmeriCares- Awards 2008). It is a nonprofit organization that provides disaster relief assistance and humanitarian aid (Network 2008). As an international organization, it provides medical assistance to any location regardless of race and belief (Network 2008). It provides emergency assistance during disasters and ensures that relief goods and medicines are delivered on time (Network 2008). AmeriCares also help in the reconstruction of damaged homes through its network of volunteers (Network 2008). Its core activities are: “global programmes, emergency response and medical outreach programme” (Network 2008, para. 2). It provides primary medical services to uninsured persons, restoration of homes of people afflicted with financial difficulty or physically handicapped, and summer camp for “inner-city children with HIV/AIDS” in the USA only (Network 2008, para. 2). An example of partnership with other entities is the AmeriCares’ home project in Fairfield County wherein it manages the project, while volunteer manpower is provided by service groups, religious congregations and other associations (The Exchange Club n.d.). When Louisiana requested AmeriCares for medical assistance, Boehringer Ingelheim provided the funding for the medical clinic which was manned by doctors from Tulane University (Boehringer 2007). The doctors were complemented by AmeriCares staff and volunteer nurses (Boehringer 2007). The mobile medical clinic likewise provided treatment to the people of New Orleans who cannot afford medical services (Boehringer 2007). It has already granted over $7 billion of assistance to around 137 countries (AmeriCares-Our Model 2008). In order to achieve this end, AmeriCares receive donations from the private sector and solicits financial assistance (AmeriCares-Our Model 2008). The goods are assembled based on the needs of the recipient, and from the funding received from donors, the goods are shipped through air or sea to “health and welfare professionals” in the afflicted area (AmeriCares-Our Model 2008, para. 2). It also collaborates and works with other NGOs, health institutions and government agencies, such as the “Order of Malta Mother Teresa’s Missionaries of Charity, Adventist Development and Relief Agency International, HOPE Worldwide, Project Mercy, Centres pour le Dacveloppemnt et la SantAc, and Help the Afghan Children (AmeriCares-Our Model 2008, para. 3). It has established one warehouse in the US and another in Europe where goods are assembled and inventoried before shipment (AmeriCares-Our Model 2008). For 2008, it aims to increase its partnership with pharmaceutical manufacturers outside the USA in order to meet the increase demand for medicines (Network 2008). To assess its efficiency, a) AmeriCares conducts Executive Committee meetings every week and Advisory Board meetings every month for evaluation of activities, b) utilizes the feedback system for comments and inputs from recipients of assistance, both health and government officials, and c) regular evaluation of field staff on the promptness of delivery and distribution of relief goods (Network 2008). The lifeblood of any organisation is its financial viability and sound financial management. AmeriCares has managed its financial resources well as shown in Table 1, which reflects its revenue and expenses at the end of June 30, 2006. Table 1 REVENUE Contributions $885,215,202 Government Grants $0 Programme Services $181,400 Investments $3,188,813 Special Events $0 Sales $32,520 Other $91,368 TOTAL $888,709,303 EXPENSES Programme Services $993,263,131 Administration $2,704,469 Other $4,807,181 TOTAL EXPENDITURES $1,000,774,781 NET GAIN/LOSS $(112,065,478) (Source: Website of Network for Good on AmeriCares Foundation, Inc., at URL http://partners.guidestar.org/controller/searchResults.gs?action_gsReport=1&partner=networkforgood&ein=06-1008595.) Table 2 provides the assets and liabilities of AmeriCares as of year ending June 30, 2006. Table 2 (Source: Website of Network for Good on AmeriCares Foundation, Inc., at URL http://partners.guidestar.org/controller/searchResults.gs?action_gsReport=1&partner=networkforgood&ein=06-1008595.) When northwestern Turkey was hit by an earthquake on August 17, 1999 that killed more than 15,000 people, injured over 30,000 people, rendered 600,000 homeless, and with $8.5 billion in damages (according to World Band estimate), AmeriCares provided three housing projects in Adapazari (tent city for 1,500 people), Korfez (216 pre-fabricated units for 1,700 people), and Yalova (300 all-weather aluminum structures for 2,400 people) for the victims (ReliefWeb 1999). Besides erection of the housing projects, potable water, medicines, medical supplies, clinics, blankets, nutritional supplements, sanitation, etc. were provided (ReliefWeb 1999). AmeriCares has delivered more than 175,000 pounds of relief goods for the victims of the earthquake (ReliefWeb 1999). It has granted more than $2,000,000 in aid to Turkey since 1992 (ReliefWeb 1999). In Iraq, AmeriCares, together with the Jordan Health Aid Society (local health care organisation), provided ample health care services to the refugees (AmeriCares – Health 2008). A grant of $50,000 from AmeriCares was used to purchase all sorts of vital medical equipment for general medicine, gynecology and obstetrics, pediatrics and dental care in established clinics in Iraq (AmeriCares – Health 2008). The Darfur conflict in 2003 forced 200,000 Sudanese to flee to Chad, and at Gaga Camp in Chad, 17,000 refugees sought refuge (AmeriCares – Improving 2008). In response, AmeriCares released a $175,000 grant for health care services, medicines and supplies (AmeriCares – Improving 2008). A portion of the grant was used for the training of health care providers – 12 traditional birth attendants, 30 teachers and community health workers – for the support of the mental health needs of the refugees (AmeriCares – Improving 2008). Since the start of its humanitarian services in Darfur and Chad in 2004, AmeriCares has transported over $2 million worth of medicines, medical supplies and other materials (AmeriCares – Improving 2008). The inhabitants of Sri Lanka and Indonesia, who were devastated by the Asian tsunami, continues to receive assistance from AmeriCares on the matter of education, health care, water supply, sanitation and livelihood (Network 2008). The grants and assistance already delivered by AmeriCares to different continents, countries and areas are innumerable to mention. But with the examples already provided, it can be gleaned that the extent and scope of its humanitarian work is too broad. References AmeriCares 2008, Awards and Rankings. Available from: . [Accessed 29 March 2008]. AmeriCares 2008, Health Clinics Help Iraqi Refugees. Available from: . [Accessed 29 March 2008]. AmeriCares 2008, Improving the Health of Darfur Refugees in Chad. Available from: . [Accessed 29 March 2008]. AmeriCares 2008, Our Model. A Passion to Help. The Abilty to Deliver. Available from: . [Accessed 29 March 2008]. AmeriCares (n.d.), Who we are. Available from: . [Accessed 2 April 2008]. Boehringer Ingelheim 2007 September 14, We care . . . Available from: . [Accessed 28 March 2008]. Department of Public Information 2005 November, NGOs and the United Nations Department of Public Information: Some Questions and Answers. Non-Governmental Organizations. Available from: . [Accessed 28 March 2008]. Network for Good 2008, AmeriCares Foundation, Inc. Available from: .[Accessed 29 March 2008]. NonProfitExpert.com 2008, NGOs – Non Governmental Organizations. Available from: . [Accessed 29 March 2008]. ReliefWeb 1999 October 1, AmeriCares Relief Effort in Taiwan: Update 01 October 1999. Available from: . [Accessed 29 March 2008]. Reuters Foundation 2007 December, AmeriCares. Alertnet. Alerting humanitarians to emergencies. Available from: . [Accessed 29 March 2008]. The Commission and Non-Governmental Organisations: Buildinga Stronger Partnership. 2000 January 18 Available from: . [Accessed 1 April 2008]. The Exchange Club of New Canaan (n.d.) Americares/Homefront Fix-up Day – Community Service Project. Available from: . [Accessed 29 March 2008]. The Tribune 2003 July 26, NGOs: Note-Growing Organisations? Available from: . [Accessed 1 April 2008]. Read More