Note from Rowland:

This morning (15th September 2005) I spoke to the Staff of an excellent organization - Christian Blind Mission International, who are committed to helping blind/visually impaired people and others with disabilities in poor countries.

From their website: Currently there are 50 million blind individuals in the world, of whom 90 per cent live in developing countries. Approximately half of these - 25 million people - are blind unnecessarily. Their blindness could be cured through cataract surgery. Their website (http://www.cbmi.org.au/ ) says $320 AUD can provide cataract operations for 10 people!

So why would an Australian newspaper have a highly critical report about an organization like this?

Read on:

First the misleading news:

Tsunami aid still a trickle Nicolette Burke 10sep05

AUSTRALIAN charities are spending a vast proportion of donations for tsunami aid on administration costs, with some spending less than 50c in the dollar on the victims.

Some charities have spent more than half their tsunami expenditure on backroom costs, despite a vow to cap such expenses at 10 per cent. Funds spent on overheads made up to 56 per cent of the tsunami donations already spent.

Most major charities kept the figure at 10 to 20 per cent but others, including Christian Blind Mission International (at 56 per cent), Austcare, the International Women's Development Agency, Opportunity International and Plan International had administrative spending rates above 20 per cent.

Australians raised more than $330 million in tsunami aid.

The charities maintain they have spent just 3.1 per cent on administration, by calculating it on the total amount raised rather than spent.

The Australian Red Cross has also come under fire for spending just $1 million in three months in tsunami aid, despite being the key crisis response agency.

In the three months to July, it earned $9 million in donations, and $1.25 million in interest on the $80 million it had in the bank -- but spent only $1.03 million on projects.

Mike Nahan, from the Institute of Public Affairs, said the Red Cross failure to spend much of its money to date would disappoint many donors.

"In the first (financial disclosure report three months after the tsunami), they had spent more than anybody else, then for some reason they basically turned the tap off," Mr Nahan said.

Red Cross CEO Robert Tickner said donors did not expect the money to be spent quickly, and it was focusing on long-term rebuilding projects.

Cecily Dignan, from the Australian Centre for International Development, which released the figures and represents 30 charities involved in tsunami aid, said the administrative costs were necessary.

"Aid can't be delivered without people doing it," she said. "We're at the front end of a big campaign and over time I'm sure it will come down to the agreed rate."

http://www.heraldsun.news.com.au/printpage/0,5481,16548842,00.html

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CBMI's Response:

CBMI CONFIRMS TSUNAMI OVERHEADS CAPPED AT 10%

Media Statement September 10th 2005

Re: In response to misleading media reports 10/09/2005.

International aid agency for people with disabilities, Christian Blind Mission International (CBMI), today confirmed that 90% of money donated by Australians to help Tsunami survivors through CBMI will be used directly in projects.

Australians donated $3,366,147 through CBMI. The overheads to fundraise, provide receipts, accounting, audit, monitoring and reporting on projects has been capped at $336,605 - 10 percent.

Already $709,482 has been spent on direct support, and is projected to increase to $1.5 million by year end.

Most overhead costs of a multi-year project come at the start, with fundraising and receipting. What's important is to compare this to the total amount that will be spent in the life of the project, not at a particular day.

"On February 3, 2005, CBMI wrote to every person who donated to Tsunami relief to confirm the overhead rate would be capped at 10%. That commitment stands," CBMI spokesperson, Jonathan Krause, said.

CBMI will continue to use the Australians gifts over the next two years to provide trauma counselling, medical operations and rehabilitation for injured survivors, training and loans to help families where there is an ability to start a small business.

"People who have suffered and lost so much deserve the very best quality of care we can provide. With a disaster the scale and viciousness of the Tsunami that means successful recovery takes not days, not months, but years," Krause said.

"CBMI has already reported to donors twice on how gifts are being used, and will continue to do so every 6 months until the project is completed. On behalf of the people Australians are helping through CBMI, we pass on the thanks and gratitude our project workers receive from survivors each day."

CBMI welcomed the questions of any Tsunami donors, by calling 1800 678 069.

CBMI is the world's largest organisation serving people with disabilities, and last year helped 12,133,192 people in 113 of the world's poorest countries.

-ENDS-

For Further information, please contact: Jonathan Krause CBMI

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Letter to Supporters re Tsunami Misleading article

Friday 16 September

Dear <>,

You won't be expecting a letter from me so soon after I last wrote to you. However I need to talk to you now because of a serious issue that may concern you.

Over the last weekend, articles appeared in newspapers around Australia with the incorrect suggestion that CBMI had high administration costs for gifts to our Tsunami appeal. You may have seen an article, or heard about it from others. Even if you didn't, I wanted you to know the facts.

I can guarantee that CBMI administration costs are capped at 10% for our Tsunami projects.

The journalist who wrote the article made the mistake of comparing administration costs against money spent so far, rather than total gifts given.

CBMI is committed to working with survivors for as long as they need help. We won't abandon them. That's why Australian gifts will need to be spent over at least the next two years to provide counselling, re-start businesses and provide operations and rehabilitation.

The graph on the information sheet I've enclosed shows exactly how your gifts are used.

A large number of other aid and development agencies suffered the same error as CBMI.

We have met together, written Letters to the Editor, and sent out media releases seeking correction of the misleading information. Unfortunately, this correction has not yet been published, which is why I'm sending you the facts direct.

Your generosity and support is far too important to be put at risk by a newspaper mistake.

Here at CBMI, we take very seriously our responsibility to be efficient stewards of the gifts with which you entrust us. At the same time, we work hard to provide effective help to people with disabilities in the world's most difficult conditions. Our aim is always to give help that lasts, that makes a difference for life.

Thank you for all your generosity and care. If you have any questions, or we can help you in any way, please call our team on 1800 678 069. We look forward to serving you.

Yours in service,

John Jeffries

PS: This issue is so important I felt needed to write to you straight away. Your regular update will follow shortly, with exciting news of our '10,000 Miracles' campaign. This year Australia is leading the way for a worldwide target of 100,000 miracles. I look forward to your support - thank you!