By Puru Shah
In my previous post titled, "What is Wrong With Donations For Nepal's Earthquake Relief?", I highlighted that a majority of the funds for the earthquake relief in Nepal are being channeled through INGOs, and bypassing the country's systems. To reiterate, I am not advocating for national and international donors to channel all funds through the PM Disaster Relief Fund.
The major recipients are Unspecified, UNICEF, International Medical Corps (IMC), PM Disaster Relief Fund, Red Cross, Oxfam and Direct Relief among others.
Big donors like IKEA and Yahoo have given funds to UNICEF. Similarly, IMC has received donations from Facebook and PM Relief Fund has received from Nepali corporations such as Gorkha Brewery.
The two biggest donors in the INGO category are Disaster Emergency Committe (DEC) and DEC UK. However, their recipients are classified as "various recipients" and are unspecified at this point (as seen in the chart below).
In contrast, Bin Talal Foundation has donated its $1 million to International Medical Corps, Habitat For Humanity and World Food Program. Similarly, Bill and Melinda Gates Foundation has donated $700,000 to Oxfam GB and $300,000 to Act Alliance (ACT) and LWR (Lutheran World Relief). Turkish Red Cross has donated to Nepal Red Cross Society.
The largest donors in this category are familiar names like the United Nations, Central Emergency Response Fund and the EU. Besides the unspecified recipients at this time, they have donated to familiar international agencies like WFP, UNICEF, International Organization for Migration (IOM), WHO and UNFPA. There are no surprises in this category. Again, I have not included $203 million loans from ADB in this category.
Notable individual contributors are Nepali nationals Chandra Prakash Dhakal and Tamdin Dorje Tuladhar. They have contributed to unspecified donor(s) and the PM Relief Fund respectively.
The largest donor in local NGO category is New York Nepalese Football Club (NYNFC) and has given its $30,000 donations to its own president who is currently in Nepal. It may seem a little unusual that donor and recipient is the same entity but perhaps the donors in the US chose to send funds to their trusted president in Nepal. It is similar to the UK's decision to contribute $7.7 million to its own Disaster Emergency Committee (UK).
The rest of the NGOs have contributed to the PM Disaster Relief Fund.
This "Others" category should be seen as a category that lists all donations from entities not falling under one of the eight categories listed above.
The largest donor, Upendra Mahato has contributed funds to Fulkumari Mahato Memorial Trust, named after his mother. He has pledged to use one-fifth of the funds (Rs. 30m) for immediate relief and four-fifth (Rs. 120m) for reconstruction.
Similarly, Shing Foundation from Hong Kong and Armed Police Force have contributed to the PM Disaster Relief Fund while recipients of Non-Resident Nepali (NRN) Association are unspecified.
Although their share of received funds is relatively small, most of their funds have come from individuals and group donations in the amounts of $37,951, $28,716, $23,138, $18,175 and $1,011. I was not familiar with Bibeksheel Nepali prior to the earthquake in Nepal but their ability to mobilize thousands of youths and deliver relief materials in remote villages of Nepal has made me a believer in their mission. In addition, any organization that enjoys popular support of ordinary individuals and groups is a worthy one regardless of ratings from sites like Charity Navigator.
If there are any Nepali or foreign donors who are trying to find a local organization worthy of their donations that will be spent well, I'd strongly recommend Bibeksheel Nepali. Their portfolio and work is documented on their website and social media pages (Facebook).
If the amount of donations from national and international donors were comparable, this arrangement would have worked out well. Since donations from national donors account for only 3.3% of the total donations, this arrangement fails to distribute funds evenly among local NGOs, INGOs and the PM Disaster Relief Fund. In my previous post, I mentioned that only 1.7% of the total donations have been made through the PM Disaster Relief Fund. This is supported by the data published by the Nepal's PM Disaster Relief website. The percentage of funds received by local NGOs is even smaller.
The repercussions of channeling funds solely through INGOs or the PM Relief Fund or NGOs is severe, as evidenced by the lessons learned from Haiti's recovery failure. It has several disadvantages and risks, the major one being a long and unsuccessful recovery in Nepal that could push the affected poor into aggravated poverty.
Data Sources: Multiple
1. Largest Overall Donors - Financial Tracking Service of UNOCHA Nepal
2. Largest Donors & Recipients by Category: (UNOCHA, US Chamber of Commerce, Financial Tracking Service, PM Disaster Relief Fund, Wikipedia, Onlinekhabar) via earthquake.opennepal.net, current as of May 9, 2015.
Puru Shah is a team member of One Stop Portal. He holds a Bachelor of Arts in International Studies and a Bachelor of Science in Engineering Science (Electrical) from Trinity University in San Antonio, USA.
In my previous post titled, "What is Wrong With Donations For Nepal's Earthquake Relief?", I highlighted that a majority of the funds for the earthquake relief in Nepal are being channeled through INGOs, and bypassing the country's systems. To reiterate, I am not advocating for national and international donors to channel all funds through the PM Disaster Relief Fund.
Our team at One Stop Portal has developed a guideline that recommends splitting donations - 40% to NGOs, 30% to INGOs and 30% to the PM Relief Fund. Please visit our donate page to read in detail about why we believe a more balanced approach in delivering funds has a greater chance of success for recovery.
What is Unique About This Article?
A list of the largest overall donors or donors by category can be obtained easily from various sources such as the OpenNepal website. However, this article takes a closer look at where funds from each donor categories are going to. This data is valuable, and understanding it helps us make key informed decisions. But to my knowledge, it has not been published explicitly anywhere, so I have attempted to close that information gap by performing data analysis and sharing the findings with you.
In this post, we will review the largest donors and their recipients based on eight different categories:
First of all, let us look at who the current largest overall donors are.
Of all the donations received & pledged - Disasters Emergency Committee (UK), the UK, the US, Norway, Central Emergency Fund, China, Japan, Thailand, Canada and Australia are among the ten largest donors.
In this list of top donors, Thailand stands out for its generosity as the country does not have a large economy when compared to others on the list. Perhaps the government of Thailand sympathizes with Nepalese people, having known what happens when a massive earthquake strikes a developing country.
General Tip: Hover your mouse over interactive chart(s) to view more details.
Only 3.3% of all relief funds have been collected from national donors. The fact that foreign donors have contributed 96.7% of the total relief funds so far is ineffable. As a Nepali, I am thankful to all foreign donors for showing such incredible support for an impoverished nation like Nepal.
The US, UK, Netherlands, China, Japan, Canada, Australia, Norway, Hong Kong and Thailand are among the ten largest foreign donor countries.
In order to understand where the funds from foreign countries are going to, please see the chart below that lists its recipients and their share.
It is clear that a majority of relief funds are being sent to "various recipients", unspecified or unknown organizations, NGOs, Red Cross, Disasters Emergency Committee (UK), World Food Program, various NGOs, UN agencies, Nepalese government and UN OCHA. Most of the recipients are international agencies and charities, with only 2.1% going to the Nepalese government directly.
It should be noted that some of the recipients are unknown or unspecified because of several reasons. First, foreign donors may not have decided their recipients yet or are still assessing different projects and their needs to finalize disbursement of funds. Second, there may be multiple recipients so, the database categorizes it as various recipients.
- Countries
- Corporations
- INGOs
- Multilateral
- Nepalese Government
- Individuals
- NGOs
- Others
First of all, let us look at who the current largest overall donors are.
Of all the donations received & pledged - Disasters Emergency Committee (UK), the UK, the US, Norway, Central Emergency Fund, China, Japan, Thailand, Canada and Australia are among the ten largest donors.
In this list of top donors, Thailand stands out for its generosity as the country does not have a large economy when compared to others on the list. Perhaps the government of Thailand sympathizes with Nepalese people, having known what happens when a massive earthquake strikes a developing country.
General Tip: Hover your mouse over interactive chart(s) to view more details.
Total Donations by Donor Category
The donors in categories: foreign countries, INGOs, multilateral, corporates and individuals have all given more funds towards the earthquake relief than the Nepali government itself.Only 3.3% of all relief funds have been collected from national donors. The fact that foreign donors have contributed 96.7% of the total relief funds so far is ineffable. As a Nepali, I am thankful to all foreign donors for showing such incredible support for an impoverished nation like Nepal.
Of all the donations received - the UK, Norway, Central Emergency Fund, China, Thailand, Canada, Australia, the US, the EU and Switzerland are among the ten largest donors.
India ranks 11th with a cash donation of $5 million. Although India is not the largest financial donor, it was the first foreign country to respond to the disaster. It has also provided crucial logistical support using its mighty Indian Air Force and military helicopters for transporting relief materials to remote areas. After Nepal Army's only large helicopter became non-operational due to a technical malfunction, Indian helicopters have been the primary air carrier for relief materials in remote villages of Nepal.
As mentioned in the previous post, only $139.3 million of $445 has been received so, let us look at the largest donors who have pledged the remaining funds.
The Disasters Emergency Committee (UK), the US, Japan, Netherlands, Kuwait, Denmark, Finland, UAE, Indonesia and Sweden among the ten largest donors who have pledged more relief funds.
It should be noted that I have omitted $203 million soft-loan by Asian Development Bank in the graphs above to make the charts appear more readable. Also, strictly speaking, it is not a donation. According to an ADB official I spoke to, it is a soft-loan that needs to be paid back at a 1% interest rate with a 30 year maturity.
If you are interested in seeing the largest recipients of foreign donations, refer to my previous post.
Before we begin our review of largest donors by each of the seven categories, I would like to note that according to UN OCHA Nepal, a total of $445 million funds have been received and pledged. However, according to OpenNepal, a total of $540 million has been received and pledged. This discrepancy in numbers is because OpenNepal compiles data from UN OCHA, as well as other credible newspaper sources, Wikipedia, US Chamber of Commerce, and others. The graphs below utilize data from OpenNepal for analysis.
India ranks 11th with a cash donation of $5 million. Although India is not the largest financial donor, it was the first foreign country to respond to the disaster. It has also provided crucial logistical support using its mighty Indian Air Force and military helicopters for transporting relief materials to remote areas. After Nepal Army's only large helicopter became non-operational due to a technical malfunction, Indian helicopters have been the primary air carrier for relief materials in remote villages of Nepal.
As mentioned in the previous post, only $139.3 million of $445 has been received so, let us look at the largest donors who have pledged the remaining funds.
The Disasters Emergency Committee (UK), the US, Japan, Netherlands, Kuwait, Denmark, Finland, UAE, Indonesia and Sweden among the ten largest donors who have pledged more relief funds.
It should be noted that I have omitted $203 million soft-loan by Asian Development Bank in the graphs above to make the charts appear more readable. Also, strictly speaking, it is not a donation. According to an ADB official I spoke to, it is a soft-loan that needs to be paid back at a 1% interest rate with a 30 year maturity.
If you are interested in seeing the largest recipients of foreign donations, refer to my previous post.
Before we begin our review of largest donors by each of the seven categories, I would like to note that according to UN OCHA Nepal, a total of $445 million funds have been received and pledged. However, according to OpenNepal, a total of $540 million has been received and pledged. This discrepancy in numbers is because OpenNepal compiles data from UN OCHA, as well as other credible newspaper sources, Wikipedia, US Chamber of Commerce, and others. The graphs below utilize data from OpenNepal for analysis.
1. The Largest Donors by Country
The US, UK, Netherlands, China, Japan, Canada, Australia, Norway, Hong Kong and Thailand are among the ten largest foreign donor countries.
In order to understand where the funds from foreign countries are going to, please see the chart below that lists its recipients and their share.
It is clear that a majority of relief funds are being sent to "various recipients", unspecified or unknown organizations, NGOs, Red Cross, Disasters Emergency Committee (UK), World Food Program, various NGOs, UN agencies, Nepalese government and UN OCHA. Most of the recipients are international agencies and charities, with only 2.1% going to the Nepalese government directly.
It should be noted that some of the recipients are unknown or unspecified because of several reasons. First, foreign donors may not have decided their recipients yet or are still assessing different projects and their needs to finalize disbursement of funds. Second, there may be multiple recipients so, the database categorizes it as various recipients.
2. The Largest Donors by Corporations
Although Facebook has gotten the most fanfare for providing a platform for raising more than $10 million from its users and a commitment to match contributions up to $2 million, Bristol Myers and IKEA are the quiet winners in this donor category. Google has also donated $2 million but its donation has not received as much publicity as Facebook has.
The only Nepali corporation to make the list of 20 largest corporate donors is Gorkha Brewery Pvt. Ltd. that is best known for making famous Nepali beer Tuborg. It has donated close to $1 million.
In the process of writing this article, I received an update that Chaudhary Group has donated $2.5 million, as reported in Nepali newspaper MyRepublica on May 10th. However, my dataset does not include this data.
The recipients of donations from foreign corporations are shown below:
The only Nepali corporation to make the list of 20 largest corporate donors is Gorkha Brewery Pvt. Ltd. that is best known for making famous Nepali beer Tuborg. It has donated close to $1 million.
In the process of writing this article, I received an update that Chaudhary Group has donated $2.5 million, as reported in Nepali newspaper MyRepublica on May 10th. However, my dataset does not include this data.
The recipients of donations from foreign corporations are shown below:
The major recipients are Unspecified, UNICEF, International Medical Corps (IMC), PM Disaster Relief Fund, Red Cross, Oxfam and Direct Relief among others.
Big donors like IKEA and Yahoo have given funds to UNICEF. Similarly, IMC has received donations from Facebook and PM Relief Fund has received from Nepali corporations such as Gorkha Brewery.
3. The Largest Donors by INGOs
In contrast, Bin Talal Foundation has donated its $1 million to International Medical Corps, Habitat For Humanity and World Food Program. Similarly, Bill and Melinda Gates Foundation has donated $700,000 to Oxfam GB and $300,000 to Act Alliance (ACT) and LWR (Lutheran World Relief). Turkish Red Cross has donated to Nepal Red Cross Society.
4. The Largest Multilateral Donors
The largest donors in this category are familiar names like the United Nations, Central Emergency Response Fund and the EU. Besides the unspecified recipients at this time, they have donated to familiar international agencies like WFP, UNICEF, International Organization for Migration (IOM), WHO and UNFPA. There are no surprises in this category. Again, I have not included $203 million loans from ADB in this category.
5. The Largest Donors in The Nepalese Government
The Ministry of Federal Affairs and Local Development has disbursed the most funds for relief within the Nepalese government.
However, the members of Nepal Police and Armed Police Force deserve all our respect for not just working tirelessly in search and rescue efforts, but also collectively donating amounts worth 14 days of their salary. Read more about this inspiring story on our #InspireNepal page. In this time of distress, they have set an example for all Nepalese to do what is right and more.
70% of donations collected from various agencies of the Nepalese government has gone directly to benefit the VDCs and municipalities of the ten most affected districts of Nepal, namely: Sindhupalchowk, Gorkha, Nuwakot, Rasuwa, Dhading, Lalitpur, Kabhrepalanchowk, Dolakha, Ramechhap, Sindhuli.
The rest of the donations, about 30% from the government bodies have gone to the PM Disaster Relief Fund.
However, the members of Nepal Police and Armed Police Force deserve all our respect for not just working tirelessly in search and rescue efforts, but also collectively donating amounts worth 14 days of their salary. Read more about this inspiring story on our #InspireNepal page. In this time of distress, they have set an example for all Nepalese to do what is right and more.
70% of donations collected from various agencies of the Nepalese government has gone directly to benefit the VDCs and municipalities of the ten most affected districts of Nepal, namely: Sindhupalchowk, Gorkha, Nuwakot, Rasuwa, Dhading, Lalitpur, Kabhrepalanchowk, Dolakha, Ramechhap, Sindhuli.
The rest of the donations, about 30% from the government bodies have gone to the PM Disaster Relief Fund.
6. The Largest Individual Donors
Notable individual contributors are Nepali nationals Chandra Prakash Dhakal and Tamdin Dorje Tuladhar. They have contributed to unspecified donor(s) and the PM Relief Fund respectively.
6. The Largest Donors - By NGOs
The largest donor in local NGO category is New York Nepalese Football Club (NYNFC) and has given its $30,000 donations to its own president who is currently in Nepal. It may seem a little unusual that donor and recipient is the same entity but perhaps the donors in the US chose to send funds to their trusted president in Nepal. It is similar to the UK's decision to contribute $7.7 million to its own Disaster Emergency Committee (UK).
The rest of the NGOs have contributed to the PM Disaster Relief Fund.
8. The Largest Donors - By 'Others' Category
This "Others" category should be seen as a category that lists all donations from entities not falling under one of the eight categories listed above.
The largest donor, Upendra Mahato has contributed funds to Fulkumari Mahato Memorial Trust, named after his mother. He has pledged to use one-fifth of the funds (Rs. 30m) for immediate relief and four-fifth (Rs. 120m) for reconstruction.
Similarly, Shing Foundation from Hong Kong and Armed Police Force have contributed to the PM Disaster Relief Fund while recipients of Non-Resident Nepali (NRN) Association are unspecified.
Are There Any Local Organizations Worthy of Anyone's Donations?
In the chart above, an unusual recipient by the name of Bibeksheel Nepali appears. It is technically a political party in Nepal but given the tainted image of political parties in Nepal, I see them more like a political force comprised of young visionaries who are dedicated to make Nepal better.
If there are any Nepali or foreign donors who are trying to find a local organization worthy of their donations that will be spent well, I'd strongly recommend Bibeksheel Nepali. Their portfolio and work is documented on their website and social media pages (Facebook).
Conclusion
If any of you have been following my previous blog posts, you can not help but notice how much I stress on donating to the local NGOs and the PM Disaster Relief Fund in addition to the INGOs. Based on the analysis above, it appears that foreign donors have given a majority of their funds to the INGOs and international charities while national donors have given a majority to the PM Relief Fund and local agencies.If the amount of donations from national and international donors were comparable, this arrangement would have worked out well. Since donations from national donors account for only 3.3% of the total donations, this arrangement fails to distribute funds evenly among local NGOs, INGOs and the PM Disaster Relief Fund. In my previous post, I mentioned that only 1.7% of the total donations have been made through the PM Disaster Relief Fund. This is supported by the data published by the Nepal's PM Disaster Relief website. The percentage of funds received by local NGOs is even smaller.
The repercussions of channeling funds solely through INGOs or the PM Relief Fund or NGOs is severe, as evidenced by the lessons learned from Haiti's recovery failure. It has several disadvantages and risks, the major one being a long and unsuccessful recovery in Nepal that could push the affected poor into aggravated poverty.
Data Sources: Multiple
1. Largest Overall Donors - Financial Tracking Service of UNOCHA Nepal
2. Largest Donors & Recipients by Category: (UNOCHA, US Chamber of Commerce, Financial Tracking Service, PM Disaster Relief Fund, Wikipedia, Onlinekhabar) via earthquake.opennepal.net, current as of May 9, 2015.
Puru Shah is a team member of One Stop Portal. He holds a Bachelor of Arts in International Studies and a Bachelor of Science in Engineering Science (Electrical) from Trinity University in San Antonio, USA.
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