Tsunami Relief Raises Earmarking Issues for Charities - January 10, 2005 Vol.6, No.1

January 10, 2005 Vol.6, No.1:

Published: 01/10/2005

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Tsunami Relief Raises Earmarking Issues for Charities

The enormous outpouring of giving for victims of the tsunami disaster in Southeast Asia is bringing the role of nonprofits in international disaster relief into the public eye once again. Many donors are earmarking their contributions for tsunami relief, raising some concern that disaster relief needs in other areas of the world may suffer.

The Red Cross has collected $92 million, which will be used for immediate relief as well as long term needs. After the terrorist attacks of 9/11 the group was criticized when donors learned some of the funds for collected would be used for other purposes. This time all gifts are going to its International Response Fund. New York attorney Jack Siegel has set up a website for donors to get information on how to ensure their intent is honored.

Doctors Without Borders suspended its fundraising after collecting more than $50 million, saying it had all it needs for those efforts. An announcement on the groupÕs website encourages donors to give to relief efforts in other places, such as Sudan and Iraq.

More contributions are likely to be made now that Congress has passed a bill (H.R. 241) that allows donors to deduct contributions made through the end of January 2005 from their 2004 taxes.