How Not To Help Hurricane Victims: Donors Beware

On numerous web sites focusing on the ways concerned citizens can contribute to victims of hurricane Katrina, Pat Robertson's Operation Blessing International is recommended. Some time after the gravity of the situation became apparent, FEMA posted a short list of agencies involved in disaster relief; there were just three agencies on the list: the Ameican Red Cross, Operation Blessing International, and America's Second Harvest. As of this writing Time Magazine's home page commends the same short list, with hyperlinks to the respective home pages of those agencies where you can make a contribution. To be sure the American Red Cross, despite the controversy on its handling of money following 9/11, does appear to be doing heroic work now. Likewise, America's Second Harvest is well respected for delivering surplus and donated food to people in need.

Placing Operation Blessing International (OBI) on the list of recommended relief agencies, however, is a real problem. One needs to take a closer look at the finances of Operation Blessing International before sending any money. On the surface OBI looks very much like the sort of church sponsored, social service organization that concerned citizens have been supporting for decades. Indeed, according to tax returns filed by the organization, its main purpose is to give "food, medicines and other necessities of life to individuals in need." I have no problem with that. One also learns from the tax return, however, that OBI recieved nearly ten million dollars from the government for the year ending in 2004. Hence, you may already be contributing to OBI, via the President's "faith based" initiatives, whether you approve of the work of OBI or not.

Why am I concerned about having either private contributions or public money going to OBI? Quite simply, because I have read publicly available documents about the work of Operation Blessing. In the year most recently reported, OBI made cash contributions of $1,739,142 to various, local church groups, food pantries, and individuals. Most of these grants were very small. A thousands dollars here, a hundred dollars there. With one large exception. OBI sent a check for $885,362.00 to the Christian Broadcasting Network. The purpose of CBN is not humanitarian relief for disaster victims but rather "to prepare the United States of America and the nations of the world for the coming of Jesus Christ."

There is a fundmental difference between providing humanitarian relief to disaster victims and preparing the world for the Second Coming of Jesus Christ. After all, if Jesus returns tomorrow, we won't need to worry about flood victims or rebuilding the city of New Orleans; God will be taking care of such problems! But hastening the return of Jesus Christ is not what most people have in mind when they write a a check intended to provide direct assistance to the victims hurricane Katrina.

There are further problems with OBI. In addition to cash contributions, OBI delivers food, water, and other "necessities of life" to those in need. Until recently, OBI tax returns contained an itemized list of what those "necessities" were. In 2001, for example, among the products distributed were Ensure, a dietary supplement and Splenda, a no calorie sweetener. I suppose that few would object too strongly to such products, though one would wonder whether a no calorie sweetener ($2,572,548 of it to be exact) could be considered among the "necessities of life." Also, looming very large on the list of products being distributed by Operation Blessing International in 2001 were panty hose and candy. ($10,465,640 worth of candy.)

Do you suppose that those being asked to contribute to OBI understand that a significant portion of its money is involved in the distribution of panty hose and candy? And is it any surprise that OBI no longer reports what it counts as a "necessity of life?"

Also in 2001 OBI's largest contribution by far was to the Christian Broadcasting Network: $2,061,755.00 to be exact. I suppose that Pat Robertson truly believes his television show ranks among the "necessities of life," but I wonder if the average American tax payer would agree?

Further, one notices that OBI and CBN have interlocking boards of directors with several people serving on both. Pat Roberston, his wife Dede, and son Gordon are directors of both OBI and CBN. Gordon draws a salary of $246,000 for his work with OBI. One of the most important responsibilities of any Board of Directors is to evaluate the performance and insure the integrity of staff. How can a board of directors that includes both father and mother impartially determine whether son is using the tax exempt income of their essentially family owned "not-for-profit" responsibly? This is nepotism of the most obvious kind, a practice that any responsible agency would avoid.

Whatever one thinks of Roberston's politics or his faith, his network of organizations is a text book example of how NOT to conduct a not-for-profit organization that benfits from its tax exempt status while recieving nearly ten million dollars from the government each year.

Note: As of this writing FEMA has replaced its original list of agencies providing relief to hurricane Katrina. The Bush - Clinton Katrina Fund is now featured on the FEMA website, along with state and local agencies in the affected areas.

Further Note: Here is my own list of agencies providing assistance to disaster victims.

You are invited to discuss the relief effort and Operation Blessing's role in it here.