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They Spend HOW Much? Changing U.S Aid Perceptions
 

How much would you guess the United States spends on foreign aid?

Go ahead! Take a guess.

If you guessed 25%, which is what the Washington Times reported most Americans thought to be spend on foreign aid in 2011, you would still believe that we spent less than a recent survey by the Kaiser Family Foundation. The survey, which was a random selection of 1,205 adults ages 18 and older across the United States, found that the average American believed that 27% of the budget was allotted for foreign aid spending in 2012.

The reality of aid spending in the United States is actually staggeringly less. The U.S government spends around 1% of the budget on aid, not including projects in Afghanistan and Iraq (this is included in defense spending). This is a far cry from commitments mad in 1970, and almost every major summit since.

In 1970, the world’s rich countries agreed to give 0.7% of their GNI (Gross National Income) as official international development aid, annually. Since that time, despite billions given each year, rich nations have rarely met their actual promised targets. The U.S. is often the largest donor in dollar terms, but ranks amongst the lowest in terms of meeting the stated 0.7% target. Furthermore, spending is still a fraction of the most recent commitment made in 2009 at the G8 in L'Aquila, which focused on lifting 50 million people out of hunger through farming programs.

It is easy to see why this misconception about aid spending may be prevalent in the United States. In a quick Google search with the term “aid pledges by the U.S.”, a slew of contradictory and confusing information emerges. A majority of the top ten search results are articles about emergency funding and disaster relief for countries like Libya, Somalia and the Sahel region. With the numbers that are bandied around, 100M here and 6M there, it appears that we’re cumulatively spending our share.  

To change this perception, more notice must be given to sustainable programs that are pulling people out of poverty with agricultural training and saving lives with healthcare for women and families.  Solutions must be highlighted that don’t revolve around sending bags of rice, that once eaten, leave local economies depressed and people without the skills to feed themselves.

There is hope, however, that attitudes regarding aid can change with the dissemination of correct information. For example, when survey respondents were told that only about one percent of the federal budget is spent on foreign aid, the number of respondents who believed too little is spent on aid more than double.  They even recognize the lack of media coverage. The Kaiser Family Foundation survey found that roughly half of Americans (52%) said the news media spends too little time covering global health issues, up from 41 percent in 2010.

Additionally, global health aid has the potential to be relatively popular, even if foreign aid is not. Fifty four percent of Americans say the government is spending too much on foreign aid, whereas only 21% say we are spending too much to improve health for people in developing countries. This means that people are more inclined to approve of foreign aid spending if there is a comprehendible purpose. Most Americans ranked basic needs such as clean water and reducing hunger, along with improving children’s health, as top priorities.

The study from the Kaiser Family Foundation provides us with a crucial lesson: that there is a massive opportunity to change American opinion of foreign aid spending through advocacy and education efforts.  The problem is not that Americans believe that the United States shouldn’t play a role in aiding global programs, rather there is a lack of understand about how much and where the money is going.

Drew Altman, Kaiser Family Foundation President and CEO, captured this perfectly in a column he wrote on the findings:

 "One of the strongest predictors of support was the belief that aid would make a difference. This means that documenting the impact of assistance and then communicating that to opinion leaders and the public is absolutely critical for advocates of foreign aid and global health."

Will you step to this challenge?

 
Posted by Danielle Goldschneider in What Can I Do? for column GPP - United States on May 26th 2012, 01:09
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Fundraising 101 for Live Below the Line: Part II
 
Here is a post from Howard Freeman, author of Making a Difference 2.0, who was the top Live Below the Line fundraiser from last year.
 
 Though I’ve been in fundraising for almost seventeen years, I’d rarely asked for money from friends for a project I was personally (rather than professionally) involved in. When I did “Live Below the Line” in 2011, I therefore had little experience, and the prospect of raising the money was more daunting than the fast.
 
In 1986, I did a 15-mile walk-a-thon in New York City but signed up my sponsors to pledge by the mile “run.” I figured I’d raise more money. I    stupidly ran the last ten miles in old sneakers and then couldn’t walk the next day. That was it—my personal fundraising one-off—until my next experience nearly twenty-five years later. This past year’s effort was transformative in my own way of looking at the issue of extreme poverty, because in addition to eating less for a week, I took the time to learn more. But it was also a time that focused me on the power of community, so much so that I wrote a book about how robust online giving can come only from strong community. Your personal community—I can’t stress this enough—are those family, friends and coworkers who will both support you financially and keep you encouraged.
 
Therefore, if you commit yourself to the fundraising part of this event, and if you will work hard at it for a couple weeks, you will strengthen that community by allowing them to partner with you, and you will reap a great reward in knowing that you’ve done a wonderful thing for people around the world who will never have the opportunity to thank you personally.
 
Yet there’s at least one big fat obstacle in the way: actually raising the money. So I was asked to share my story from last year, since our team was fortunate enough to end up in the #1 spot out of more than three thousand American teams. While there are certainly some “techniques” and strategies that I think worked—most being those that GPP gives all of us in their online guide—the one thing I credit our success to is the community of my friends, coworkers and family who contributed. Your community will support you if you let them know how important this effort is to you. Make this personal.

Leading up to Live Below the Line, I’ll be sharing my top tips on reaching your financial goal. Here is number 1:

1. “YOU DO NOT HAVE, BECAUSE YOU DO NOT ASK.” Having now done two micro-fundraising efforts; raised personal support from family and friends to go to graduate school; and spent 17 years in professional fundraising, mostly in major donor work—and also as the observant father of three sons who are too young to know better—I can say without hesitation that the #1 reason more people don’t raise more money is because they’re afraid to ask, so they don’t ask.
 
If you’ll notice, children are never afraid to ask for anything.
 
If we’re honest, our hesitation is that we might be too proud to put ourselves out there and get rejected. (Again, children are not proud.) My encouragement is this: assume for the moment the humility of the people whose plight you’re representing and speak to those with means to help. Poor people have a voice, but they don’t have the ear of those you do. Be that go-between connecting the voice with the ear. Trust that those who are reading your email or text, or listening to you on the phone or over coffee, are among those who care about you. They’re not suddenly going to hate you! And take consolation: it’s often harder for them to say “no” than for you to hear it. They will most likely simply not answer your message.
 
Here are some practical tips, which I feel are vital:
  • Email your first message to your entire email list. The reason to do this is that once you start cherry-picking people to include, you will come across a lot more reasons to exclude. You’ll also waste a lot of time. EMAIL EVERYONE.
  • Since you’re emailing everyone, plainly state that in your note. Last year’s LBL occurred during my birthday, so I opened with some quip about sharing my cake with 1.4 billion people, explained the project, and then added an ending like, “I'm bcc:ing my entire directory with this note (yes, it is somewhat impersonal...but it is for a good cause!), and it's likely I have never asked you personally to donate to an organization before. But I'm asking you to please consider it today.” BE OBVIOUS: YOU WANT AS MANY PEOPLE TO HELP AS POSSIBLE. This also underscores your passion about what you’re doing: you’re asking everyone you know.
  • I think I emailed my entire list only twice, maybe three times. After that, I kept it more focused, did a lot of thanking, and did social media (covered later).

Check out Howard‘s book here

 

 
Posted by Danielle Goldschneider in What Can I Do? for column GPP - United States on Apr 24th 2012, 09:17
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Girl Scouts Live Below the Line
 

 

When I think of the Girl Scouts, what immediately comes to mind are cookies. Thin mints, shortbread, and samosas abound.  Baked goods, however, are only one of the many fundraising campaigns the scouts will take on this year.  Girl Scout Law, recited at every formal meeting, reminds girls to “make the world a better place, and be a sister to every Girl Scout.” This year, Missouri Girl Scouts of all ages will actualize this pledge by skipping the cafeteria lines and packing simple meals of noodles, beans, and carrots as they taste extreme poverty for themselves as participants of Live Below the Line 2012.
 
The Girl Scouts were originally started by Juliette "Daisy" Gordon Low with at troop of 18 in Savannah, Georgia, on March 12, 1912. Today, Girl Scouts of the USA has a membership of over 3.2 million girls and adults, with 50 million women Girl Scout alumnae. Prominent Girl Scout members have included Diane Reynolds and Supreme Court Judge Sandra Day O’Connor. Their original mission was to bring girls out of isolated home environments and into community service and the open air. Girl Scouts hiked, played basketball, went on camping trips, learned how to tell time by the stars, and studied first aid.
 
Looking back on this rich history, the Global Poverty Project couldn’t be more excited to have them as part of the campaign. A portion of the funds raised will contribute to programs that empower women in the developing world though entrepreneurship. This seems appropriate, as the Girl Scouts have consistently encouraged women and girls to become activists, from hosting training programs for young nurses in WWI to technology and science programs today. There is even a badge available for global awareness and social entrepreneurship.  
 
Olivia Rowland, Senior Girl Scout and Gold Award Candidate, plans to Live Below the Line for the Global Poverty Project. “Girl Scouts has taught me to unite with others, help people at all times, and to be a sister to all. I have been encouraged to pursue global issues through events that analyze global cultures and create international bonds. I want to Live Below the Line because together we can make a difference,” Olivia explained. 
 
The Girl Scouts will raise money for this year’s partners: Malaria No More, UNICEF, Global Syndicate, Rainforest Foundation US, and the Global Poverty Project. Girl Scouts are encouraged to take part in the campaign by registering at www.livebelowtheline.org/us. Each participant will be able to establish a personal fundraising page and track their progress online. 
 
This year, when I think of Girl Scout cookies, I’ll also be thinking about the incredible strides being made to eradicate extreme poverty, and how the Girl Scouts have contributed to that effort.

 
Posted by Danielle Goldschneider in Women & Gender, What Can I Do? for column GPP - United States on Mar 28th 2012, 00:10
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Fundraising 101 for Live Below the Line: Part I
 

 

The first time I fundraised for a campaign was when I was 11 years-old. I traveled door-to-door selling cartoon-themed wrapping paper for my public school. I sold $100 worth of tacky Sesame Street and daffy duck paraphernalia, complete with matching ribbons and bows. I venture that my meager success was largely based on sympathy. It rained. I tripped in the mud and ruined my rain jacket. I was bit by a dog and forced to end my campaign in the ER.
 
Since my 11-year old wrapping paper debacle, I’ve come a long way to learn how to successfully manage a fundraising campaign. For one thing, walking door-to-door was not the most successful strategy. I would have been more effective targeting 30 to 50 individuals in advance, each of which with connections to my school, family, or faith organization. Fundraising is not about how many people you request for donations, it’s about finding people that identify with your cause or are already looking for ways to be involved in a charitable endeavor.
 
As the Global Poverty Project kicks off Live Below the Line in the United States, thousands will agree to partake in their own fundraising campaigns by eating and drinking for $1.50/day for five days. Here are some tips participants have used to secure funds for the challenge:
 
1) THE ASK
One of the biggest hurdles that participants must overcome is their hesitancy to ask potential donors for money.  Remember, you aren’t asking for a new Ipod, the money is for important charity projects! Write out a short speech with or email with clear reasons as to why you feel passionately about the organization and where the donated funds will be spent.
 
2) THE DONORS
The first step in finding interested donors is to scroll through your phone list, Facebook friends, Twitter followers, and members of your faith community. Once you have made a list of these individuals, ask if they know any business owners or community organizations. Add them to your list. Networking is the single most important part of fundraising, be it through personal connections or social media. Family, friends, or business owners are far more likely to donate to people they know and trust. Even if you don’t know them directly, having a friend in common goes a long way to increase participation.
 
3) THE MONEY
It’s important to ask for the right amount of money. It’s a balance. You don’t want to overwhelm a potential donor by asking for an unreasonable amount of money for each day of the challenge, but you also don’t want to “under-ask”. When requesting a donation, it’s better to have a conversation about what they would feel comfortable contributing. Suggest a few different amounts that other donors have pledged in the past. We suggest asking between $50 to $100 per day from businesses or for-profit companies. From family and friends, ask for $20 per day, or if they are voracious coffee/tea drinkers, ask that they donate what they would typically spend on coffee or tea for the week.
 
Most importantly, when fundraising, don’t give up! You may hear “no” from the first three or four people you approach. Find out why these individuals have reservations about giving and change your strategy. Be creative. Friends may not be financially able to contribute, but maybe they can throw you a music show or Live Below the Line dinner!

 
Posted by Danielle Goldschneider in What Can I Do? for column GPP - United States on Mar 20th 2012, 03:08
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Microfinance and the Middle: Changing Loan Systems
 

The middle. It’s a tough place to be, especially if you are a business owner in the developing world too large to apply for microcredit (typically loans of $25-$50,000) but still too small to apply for a typical bank loan (typically 200,000 plus). These businesses are in the “missing middle”, a finance bubble that prevents them from leveraging their size for credit. Without this credit, businesses in the developing world that are successful, but not necessarily booming, can’t access the funds that they need to grow and sustain their operations.

I recently visited the offices of Root Capital, a non-profit that provides loans to businesses in the developing world in the “missing middle”, typically agricultural cooperatives that grow coffee and cacao. Their front lobby is an enticing tiered display of mouthwatering chocolate, different types of skin care creams, handmade crafts, and aromatic coffee—all products from Root Capital’s portfolio of investments. Many of the packages are from well-known brands like Starbucks and Whole Foods, while other are from up-and-coming consumer favorites like Taza chocolate.
 
“One of the major barriers to people moving outside of poverty and having more prosperous livelihoods is access to finance,” says Jesse Last, Root Capital’s Strategy and Innovation Associate. Since its launch, Root Capital has provided more than $256 million in credit to 320 small and growing businesses in 30 countries in Latin America and Africa with a 99% repayment rate from borrowers and a 100% repayment rate to investors.
 
“Farmers might be growing a terrific crop like coffee and there may be demand for the crop, but if they don’t have money to buy up all that coffee, process it, and export it to the end buyer, than they can become trapped,” explains Last. In other words, farmers in the developing world may harvest a profitable crop but are forced to sell it at bargain prices to middle-men, who may not offer the best price but have cash in hand,  in order to pay their immediate expenses.
 
Removing the obstacles to starting and expanding businesses in rural agriculture will be a crucial step in attaining the first millennium development goal, eradicating extreme poverty and hunger. Seventy percent of the world's poor live in rural areas. Agriculture is the main source of income and employment, and in the oncoming years has the potential to reduce rural poverty by more than twice the amount of any other investment sector. Non-farm activities provide 44 percent of rural jobs in Asia and 25 percent in Latin America. In rural India they provide 60 percent of the income of the poorest 20 percent of the rural population.
 
Take cacao farmers in Peru. Peru is the world's second largest cocaine producer after Colombia, with nearly 139,000 acres (56,250 hectares) covered by the crop, according to the UNODC. Farmers grow coca due to intimidation from drug traffickers, but also as the surest way to pull themselves out of poverty.
 
That’s changing, though. Over the past few years with loans from organization like Root Capital, assistance from aid agencies working with local groups, and access to global markets, farmers are turning to cacao as a safe and profitable crop. Cacao exports for chocolate production were up over 400% in the past decade, and production this year will be around 35,000 metric tons, putting Peru close to the top 10 biggest producers.
 
Last recalls speaking with farmers from a cooperative in the St. Martin region of Peru, one of Root Capital’s first loans.  “The farmers told me, ‘we aren’t known anymore as coca growers, we are known as cacao growers and we want the world to know” says Last.

 
Posted by Danielle Goldschneider in Fairtrade & Ethical Purchasing for column GPP - United States on Mar 9th 2012, 08:25
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