The CEO of Red Cross makes $500,000 dollars. Who knew helping the poor
was so lucrative? Sad thing is, it truly is a bountiful business. Factoring in
the salaries of Red Cross’s top executives, a large portion of every dollar donated
never actually makes it to the people it’s intended for.
While it is easy to reprimand an organization for paying its executives
so much, the Red Cross is one of the largest non-profit organizations in the
world. It requires qualified and effective leadership.
If I had these qualifications I sure wouldn’t be interested in running
such a vast network without a competitive salary. Arguably, no one else would
either. Compared to the salaries of other CEO’s, $500,000 can seem like chum
change.
But even if this line of thought
justifies the salary, it really only absolves the tip of the iceberg. Taking a
closer look, there are technicalities behind many of these non-profits that are
less obvious and even more vile.
Long story short – non-profits
are marred by money mongering like any other business sector. And the
consequences are much worse.
One of the best examples involves non-profits working to bring foodstuffs to
the impoverished in Africa. These organizations get their funding from developed
governments based on statistics rather than efficacy. The more food they give
out, regardless of where, the more funding they get.
In the competitive market of getting grants, many non-profits end up giving out
an actual excess of food to places that are already overflowing with aid. This
way they can report inflated numbers. They’ll literally give out an extra
thousand pounds of food just to get
more funding.
What’s wrong with more food?
Sometime too much can be more damaging than too little.
For one, in order to distribute a large amount of food, many of these
organizations have to rely on effective public transportation, including paved
roads and highways. This limits their ability and desire to go into the more
rural regions where their help is needed most.
As such, a major “food dump” occurs in the urban areas. This poses a massive
problem for the rural, agrarian population that composes the vast majority of
Africa’s underserved.
These people already struggle to meet ends meet by selling their foodstuffs
against more competitive corporate farmers. With NGO’s giving out free food to
their urbanite customers, these farmers find themselves in an even more
desperate situation. They lose customers and they lose money.
It’s a vicious cycle.
The need becomes greater as the farmers become poorer. More NGOs arrive
to give out more food, and the farmers become even poorer. Money is
continuously thrown into Africa to fund more food, and all the while the continent
starves beneath a pile of potatoes and dollars.
The
death of the African farmland and the increasing urban sprawl is a direct
result. Poor farmers are forced to flock to urban cities, giving up on their
traditional way of life
These urban centers don’t have enough jobs to support the influx, and
soon underdeveloped cities become overpopulated. The result? Massive
super-slums where disease and poverty reach new heights. It’s genocide in the
indirect degree.
Sadly, this issue doesn’t end with food relief. When I did a case
competition on Haitian disaster relief, the same issue became very clear. After
the earthquake over a thousand NGOs began operating in the country. The most
NGO presence to occur per square mile, ever!
Yet the situation in Haiti remained dire for years. It came down to wasted
spending by NGOs who were overlapping, providing two times the aid in areas
that had already received care.
It was a massive lack of collaboration and hundreds of thousands of donations
were put to waste. NGOs used the number of people they’ve serviced as an
advertisement for more donations.
But what donors didn’t know was that several of these NGOs were counting these
same people twice, and many NGOs were counting the same people as other NGOs.
The numbers sounded nice, but they meant little. In fact, they were false.
So while the Red Cross is getting so much heat, in reality, paying an
executive an extra hundred thousand is relatively miniscule in a system that causes
more damage than repair. A system that wastes sums of money ten times greater
than a mere $500,000, through loopholes and inefficiency.
NGO reputations are based on the amount of funds they receive. Funds based on
numbers. And as such, it is no surprise that NGOs spend much of their marketing
and publicity on making sure these numbers remain high. Without funding, they
cease to exist. And to prevent their own demise, they let those they’re helping
die instead.