Giving to Haiti relief

As word spreads that the U.S. Internal Revenue Service will allow taxpayers to tack donations for Haiti relief made between Jan. 12 and Feb. 28 onto their 2009 taxes, a concern has popped up that earmarking donations — as required for the deduction — will hinder the future work of organizations.

On Saundra Schimmelpfennig's list of dos and don'ts of disaster donations (via Steve Thorngate), a don't is earmarking funds for Haiti relief.

The potential problem is organizations ending up with funds they can't spend, as happened to the Red Cross after the 2004 tsunami in Asia (via Felix Salmon.)

That wasn't the case for Mennonite Central Committee, which used funds designated for tsunami relief and reconstruction during a five-year period, according to Phil Rush, director of MCC's Resource Generation Network.

In Haiti, MCC can use funds earmarked for earthquake survivors for its long-term response, Rush said.

So, while MCC needs non-designated funds for its work, too, U.S. donors who want to take the 2009 tax deduction can do so without hindering MCC down the road. Those who wish to give to large organizations such as the Red Cross or Doctors Without Borders, though, should take care about designating funds.

Whether or not they earmark donations, individuals are giving abundantly. It's time for governments to step up, too, writes Justin Podur, a Toronto-based activist who has collaborated with Colombian Mennonites on economic justice efforts. And international financial institutions could cancel Haiti's debt, as well as giving grants rather than additional loans. — Celeste Kennel-Shank