The old habit of giving to famous, big name aid agencies is proving to be a bad habit. Savvy donors are discovering that giving to lesser-known, but highly effective local groups is a much better way to deliver assistance.

Recall the tsunami disaster from December 2004. You probably gave generously in response as most people did, but what happened with all that money? Here are a few facts from Aceh province in northern Indonesia where 170,000 people perished. According to a World Bank report of July, 2006, of the $8.5 billion sent only $1.5 billion has been distributed! This is more than a year and a half later after the disaster. The New York Times wrote a summary of the lack of progress on July 27, 2006. In part it said, "According to a report released this month by the United Nations [another report in addition to the World Bank's findings just mentioned], governments, and several international charities, aid organizations in Aceh displayed 'arrogance and ignorance' and often employed 'incompetent workers' who only stayed for short periods of time." That is a horribly discouraging assessment of progress. It is not at all the kind of results people were expecting when they sent their money.

What should you do the next time a big disaster hits? Don't hesitate to give. Just give differently. Identify local organizations that are already working in the community and support them instead of the famous international agencies. Give to specific projects that have credible implementation schedules. Do not send money to a big fund that is merely named for the crisis. Too often that results in a large portion of your donation being swallowed up in overhead.

While it easy to write a check to a major international organization like the Red Cross, how do you give directly to a local service organization in a place like Indonesia? You definitely need reliable due diligence and a legal means to transfer funds. Until recently, you had no choice but to solve those puzzles yourself. Now, however, a new type of service is emerging that facilitates high impact giving even in very difficult, faraway places. The White Horse Group can help you give directly to effective organizations in foreign countries. Others who can assist with direct international philanthropy include: www.GlobalGiving.com, www.UniversalGiving.org and www.GenevaGlobal.com.