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The High Cost of Charity

 

What does it cost to carry a truckload of relief goods from Karachi to the Baluchistan border for the Afghan refugees? The experience of Dr. Saira Khan of the charitable Medical Aid Foundation offers a rough but realistic gauge that other potential help-givers may need to keep in mind. With free voluntary services and not counting the value of the goods which come from charity, and a tight hold on expenses, this (second) trip came to around half a lac of rupees, give but not take a few thousand rupees. All but 15,000 rupees went into the hiring of trucks and the cost of fuel.

One 60ft container full of excellent condition second-hand warm clothing and blankets worth 10,000 pound sterling donated by the people of the city of Glasgow was shipped by sea to Pakistan. The donors paid the cost of shipping as well. Because the goods were for a charitable purpose, the clearing agents took only a nominal amount of Rs. 7000/- to cover the most basic costs. Only Rs. 8000/- was taken as demurrage charges.

The hiring of three trucks including fuel from Karachi came to Rs. 27,800/-, and the loaders at both ends charged a total of Rs. 1600/- while the truck also carried some helpers for distribution work, Dr. Saira Khan and other personnel traveled in Medical Aid Foundation’s own vehicle. The cost of diesel oil for it from Karachi to Quetta and Chaman and back came to Rs. 5,500/-.

The cost of out of town stay and meals was free, coming from the hospitality of friends, although this is not something that may be available at all times. The work was entirely voluntary. Since the trip took place during Ramazan, meals were fewer and work uninterrupted. If a ratio is taken between the worth of the goods and the cost of releasing and transporting them, the latter came to one eighteenth or so of the former.

Not all organizations can necessarily manage to keep costs so low. Charges of services vary, and costs of accommodation and other incidentals, no matter how modest, would have to be added most of the time. For destinations even further away, the costs would go up that much more. With transportation and fuel taking up the bulk of the cost, groups can feel proud of themselves if they can keep costs down to between one-twelfth (especially in the case of medical aid) and one-fifteenth of the value of what they give away.
 

 
Printed in THE NEWS, VOL 12, NO.8 FEBRUARY 19, 2002
 
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