APRIL 2011

CONTRIBUTIONS TO JAPAN EARTHQUAKE AND TSUNAMI RELIEF

FALL BEHIND RESPONSE TO HAITI
Jeff Holt, CPA - Partner, Assurance & Advisory Practice

Within a week after the earthquake and tsunami struck Japan, charitable giving reached nearly $90
million, which is by all accounts a considerable sum. However, within a week of the Haiti earthquake
that occurred in January 2010, $296 million dollars had been raised. Furthermore, when compared
to Hurricane Katrina relief, the giving after one week for that disaster yielded $547 million.
The question here is – so why was so much more raised for Haiti vs. Japan?

Of the nearly $90 million raised for Japan, $64 million was raised by the American Red Cross.
Furthermore, of the $90 million raised, $3.3 million was raised by mobile giving (via text messages)
through the Red Cross.

Mobile giving after Haiti set records, but it has since tapered off since then. Text/mobile giving
comes in increments of $10, added to a donor’s monthly cell phone bill. While text donations have
become more popular, the Nonprofit doesn’t get the vita donor data that enables them to cultivate
long-term relationships with donors.

The “Text Haiti” campaign was brand new and it became popularized through social media efforts
like Twitter. While the outpouring of public support has been similar for Japan, the novelty may have
worn off a bit. With regard to social media, for Haiti relief, relief organizations were asking for help
through social media sites, but it hasn’t been seen as much for Japan. It is theorized that this may
have been due to the language barrier with Japan.

Other reasons are suggested as to why relief for Japan has not been as high as for Haiti. First,
Japan is a well-developed nation with a relatively affluent population and not as needy. In the case
of Haiti, it was relatively nearby and very poor and needy. The perceived need of a country plays a
big part in contribution levels.

Media coverage also plays a big part in the philanthropic response to any disaster. The death toll in
Japan initially was reported as quite low compared to Haiti, where in the first 24 to 48 hours, as
many as 100,000 people were feared dead. Initial reports out of Japan were relatively quite low,
and while still growing, they are not approaching what was seen in Haiti.

Television coverage also differed between the two events. In Japan, the tsunami offered incredible
video evidence of the property devastation, but with less of a focus on individuals. Japanese
citizens who spoke with the media have also been fairly stoic, which doesn’t elicit the same
philanthropic responses. This might also play into cultural differences, as the Japanese tend to be
more reluctant of interviews and generally believe there’s always someone worse off than
themselves.

Japan is an industrialized nation, so most international aid organizations don’t have operations
there, whereas in Haiti, most of these organizations were already working there. Dysfunction was
generally greater in Haiti than in Japan because in Haiti there was just little to no infrastructure to
start with, whereas Japan had some of the best building safety codes in the world, which mean less
destruction and possibly fewer donations.

Given that Japan is a developed, affluent nation, the other side of the fundraising coin is something
to consider for charities. For example, Japan is routinely among the largest donor countries for
UNICEF, raising $155 million last year of the $2 billion that UNICEF international operates on
annually. UNICEF in turn distributes funds/goods to charitable organizations all over the world.
Now, UNICEF will have to try and make up the $155 million UNICEF typically receives from Japan, as
whatever philanthropic dollars are remaining in Japan will almost certainly be directed to its own
country.

For more information, or if we can be of assistance to you, please do not hesitate to contact one of
SingerLewak’s Nonprofit Partners:

Jeff Holt - Los Angeles Lewis Sharpstone - Los Angeles

JHolt@singerlewak.com LSharpstone@singerlewak.com

Stephen P. Carter - Silicon Valley Rob Schlener - Orange County

SCarter@singerlewak.com RSchlener@singerlewak.com