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Why the Oil Spill Hasn’t Spurred More Contributions

June 15, 2010, 1:31 pm

The cause of the drilling disaster in the Gulf of Mexico is the reason why giving in response to the catastrophe has been modest, say philanthropy experts. So far, donors have contributed more than $4-million.

“This is by all accounts a man-made disaster,” says Gene Tempel, a professor of philanthropic studies and higher education at Indiana University. “People expect BP and others to step up and take care of this damage.”

The International Bird Rescue Research Center, whose employees are helping to clean oiled seabirds, shares the view that BP should bear the cost of clean-up efforts.

On its Web site, the Los Angeles organization says that it welcomes donations for its continuing programs but will not accept contributions earmarked for its work on the Gulf Coast. 

Charities typically are able to raise more money to deal with natural disasters than emergencies caused or exacerbated by humans, Peter Walker, director of the Feinstein International Famine Center at Tufts University, told The Chronicle after the South Asian tsunamis.

In the 1990s, he said, the average amount of aid given for earthquake survivors was 10 times the average amount given for famine survivors, at least in part because famines are often caused or made worse by political corruption or armed conflict.

Foundation and Corporate Gifts Unlikely

Foundations may be especially cautious about making contributions in response to the oil spill because of Internal Revenue Service regulations that forbid making grants that provide private benefit, says Mr. Tempel.

“They may be fearful that if they provide any kind of support that it might let corporations distribute more money to stockholders,” he says.

Mr. Tempel thinks grant makers might get more involved supporting long-term projects, such as an effort to bring new industry to coastal Louisiana towns that will still be struggling several years from now, but he doubts many foundations will make immediate gifts.

“It’s going to take some time,” he says.

Corporations are also unlikely to give, says Bob Carter, vice chairman of Changing Our World, a fund-raising consulting company in New York.

“If I were sitting at Corporation X and nonprofit groups wanted me to do something I thought BP ought to do — unless it was proven to me that BP was incapable or unwilling to do something — I would certainly not be the first to step up,” he says.

Devastating as it is, the oil spill isn’t the kind of event that will generate an outpouring of generosity, says Mr. Carter.

“There’s anger over this, and there’s somebody to whom it can be directed,” he says. “It’s not like the helplessness of a tsunami or something like that. It’s a completely different emotional reaction.”

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4 Responses to Why the Oil Spill Hasn’t Spurred More Contributions

ccorish - June 15, 2010 at 4:37 pm

Nicole, Why not offer the other side of the story, too? Instead of writing how people aren’t giving, why not offer a link or two to some organizations that ARE accepting donations for the spill cleanup? Donations are small compared to other disasters like Katrina, the tsunami, Haiti, etc. Perhaps the donations are small thus far because the media have not been offering information on how people can help!The Greater New Orleans Foundation is accepting donations. See http://www.gnof.org/programs/gulf-coast-oil-spill-fund/disaster-on-the-gulf-coast/ for more information.Manmade or not, and whether the fault lies somewhere in the commercial chain (BP, Transocean) or the federal government, fishermen and shrimpers are losing livelihoods and businesses that hire people are closing. They need your help NOW!Thank you.

jmontoya - June 15, 2010 at 5:34 pm

I went to the website of the International Bird Rescue Research Center, fully intending to make a donation. But it basically said that BP is paying for everything. I totally agree that people need to be told what organizations are accepting donations for the spill. I only found the Bird Rescue organization because they had a spokesperson on the news. I have been following the oil spill news pretty closely and there has not been a single mention that I’ve seen about organizations in need of donations.It’s not that people don’t want to give. It’s that they’re not being given the opportunity!! I think we all pretty much realize that BP is not going to cover abosultely every need associated with this disaster.

dcspacone - June 16, 2010 at 9:06 am

Why in the hell would anyone donate to fund a catastrophic cleanup effort spurred by a multi billion dollar company that holds them hostage at the pump with every fillup?Let BP feel the financial strain of their actions. If it bankrupts them, then so be it. Nobody forced them to play in this sandbox.The oil business is big noney and with that comes risks and they are reaping the consequences.

siouxzieb - July 6, 2010 at 3:53 pm

“Why in the hell would anyone donate to fund a catastrophic cleanup effort spurred by a multi billion dollar company that holds them hostage at the pump with every fillup?”Wow. Really? Perhaps because the catastrophe in question is threatening the lives of countless species of flora and fauna, fouling public (as well as private) resources and ruining those whose livelihood’s depend on a relatively unspoiled sea??? These are not good enough reasons to want to donate?? What must it be like to sit on that throne of judgement while the oil penetrates the bayous and estuaries, coating and choking and drowning fish, fowl and mammals alike.I agree with ccorish and jmontoya above–there are many less vengeful and “godlike” among us who are eager to donate or volunteer. One organization that will gladly accept your donation is the Barataria-Terrebonne National Estuary Program. Please visit their site to donate items or money: http://volunteer.btnep.org/default.asp?id=40 or go to http://www.supportbtnep.org/ to contribute to the foundation set up to support their activities.Don’t get me wrong–I am as anxious as anyone for BP to hang–but most pressing is immediate action and response to save lives and entire eco systems. It remains to be seen just how willing (or able) BP will continue to be to “honor all legitimate claims” once/if the gusher is capped, and indeed it will be difficult for the heaps of oil-coated pelicans rotting on the beach to submit any claims.