Continuing Care

By Barbara Kiviat

With billions of dollars already pledged to tsunami relief and celebrity benefits still pitching, donating may seem a tad less urgent these days. So are your dollars really needed? You bet. Victims along the 3,000 miles from Sumatra to Somalia face years of rebuilding, and there's a risk that disease could push the total number of lives lost far above the current estimate of more than 150,000. Still, it is more important than ever to be smart about how you give--to make sure your funds have the impact you want. A guide:

WHAT KIND OF HELP IS NEEDED NOW? While immediate relief needs are being addressed, long-term development work--rebuilding schools, making microloans to rejuvenate businesses, providing trauma counseling--has barely begun. Large international charities with development projects in places like India, Sri Lanka, Thailand and Indonesia include Oxfam, CARE, Save the Children, World Vision and the International Rescue Committee. "Emergency relief is sexy, but people need sewers and roads and health clinics," says Daniel Borochoff, president of the American Institute of Philanthropy.

HOW DO I PICK A CHARITY? Watchdog websites such as charitynavigator.org give.org and charitywatch.org rate organizations on the efficiency of their programs--in other words, how much of your money goes to aid vs. administration and fund-raising efforts. Many large, well-known charities, including the American Red Cross and Catholic Relief Services, get good marks and have set up special tsunami funds. If there is an organization you admire, though, you may want to consider giving an unrestricted donation, which will allow the charity to allocate the cash as it is most needed. One warning: be wary of e-mails soliciting donations on behalf of specific victims or foreign governments. The hucksters are out.

CAN I BYPASS THE BIG CHARITIES AND GIVE DIRECTLY TO LOCALS? Local organizations are tough to vet, but they have a certain appeal. Big international charities often have to work through a host country's government, which may have an agenda of its own (suppressing separatists in Aceh, to use Indonesia as an example). If you prefer an overseas charity, stick to those that have partnered with more well-known organizations, suggests Eric Thurman, CEO of Geneva Global, a group that hooks up wealthy American donors with charities abroad. For example, LEADS is a Sri Lankan relief group that has worked with Tearfund, a British umbrella group. Another possible route: contacting organizations in immigrant communities where you live that may be providing direct aid to families.

WHAT ABOUT TAX DEDUCTIONS? Donations to overseas charities aren't deductible. If, however, the group has U.S. operations--and tax-exempt status (you can check at irs.gov see Publication 78)--you're in the clear. Gifts made to tsunami-specific funds by the end of January may be deducted from 2004 taxes. But even a 2005 deduction should make opening your heart--and your wallet-- easier. --With reporting by Carolina A. Miranda and Deirdre van Dyk

With reporting by Carolina A. Miranda; Deirdre van Dyk