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Material Aid Handbook

November 2008 Edition Mercy Corps 3015 SW First Avenue Portland, OR 972001 Phone: 503.796.6800 FAX: 503.595.6844 Website: www.mercycorps.org Email: [email protected]

Material Aid Handbook (1 NOV 08) of 37

Table of Contents Glossary...................................................................................................Page 3 Part I: General Information

1.1 Introduction ..............................................................................Page 4 1.2 About Mercy Corps ....................................................................Page 4 1.3 About the Material Aid Department ...........................................Page 4 1.4 Mat Aid Partnerships/Collaborations Overview..........................Page 5 1.5 Policy on Material Donations .....................................................Page 5 1.6 Frequently Asked Questions ......................................................Page 6

Part II: Steps to a Successful Materials Project 2.1 Planning Process

2.1.1 Concept Note ..........................................................Page 8 2.1.2 Proposal .................................................................Page 9 2.1.3 Important Considerations .......................................Page 10 2.1.4 Duty-Free Importation Status.................................Page 10 2.1.5 Agreement ..............................................................Page 11 2.1.6 Fair Market Value Statement ..................................Page 11

2.2 Shipping Process 2.2.1 Freight Arrangements .............................................Page 11 2.2.2 Customs Documents ..............................................Page 12 2.2.3 Other Considerations..............................................Page 13

2.3 Arrival Process 2.3.1 Customs Clearance & Receipt.................................Page 14 2.3.2 Letter of Receipt......................................................Page 15

2.4 Distribution Process 2.4.1 Project Report .........................................................Page 15

2.5 Documentation Responsibilities Outline................................Page 16 Appendices

Appendix A: Material Aid Department Organizational Chart ..............Page 17 Appendix B: Materials Acceptance Criteria & Approval Process .........Page 18 Appendix C: Concept Note.................................................................Page 21 Appendix E: Proposal ........................................................................Page 22 Appendix E1: Agreement ...................................................................Page 26 Appendix E2: Agreement Addendum .................................................Page 29 Appendix F: Fair Market Value Statement .........................................Page 30 Appendices G1-G4: Customs Documents Examples

Appendix G1: Non-Commercial Invoice ....................................Page 31 Appendix G2: Certificate of Donation .......................................Page 32 Appendix G3: Inventory List ....................................................Page 33 Appendix G4: Bill of Lading .....................................................Page 34

Appendix H: Letter of Receipt ............................................................Page 35 Appendix I: Impact Report Outline ....................................................Page 36 Appendix J: Sample Story .................................................................Page 37


Glossary Term Definition

Bill of Lading ..................................A document issued by a Carrier (such as a steamship line) acknowledging that specific goods have been received on board as cargo.

Carrier ............................................Steamship line, airline or trucking company

Collaborating Agency .....................A group, organization or program to which the Material Aid Department provides material donations and or other assistance. This list includes both Mercy Corps field programs and other organizations.

Consignee .......................................The organization or person named on the Bill of Lading to whom goods are shipped. The Consignee assumes full legal responsibility for the goods once they have arrived.

Demurrage ......................................Holding a container beyond a certain time limit and incurring a penalty charge.

Freight Forwarder ..........................A company that handles import/export shipments.

GIK..................................................Gift-in-kind, a donation of materials

LCL..................................................Less than Container Load (LCL) refers to any shipment that does not fill a container and thus may be combined by the shipping company with other LCL shipments in order to fill a container.

Match..............................................A contribution, either financial or in-kind, to a program by an organization other than the funding entity.

Material Aid ....................................A donation of materials, referred to by other agencies as GIK

NGO.................................................Non-Governmental Organization can be broadly used to mean any organization that is neither a government nor a business, though it generally refers to those involved in environmental or social issues, whether they have a domestic or international orientation.

Shipper ...........................................The organization or person named in the Bill of Lading who ships the goods to the Consignee.


1 General Information 1.1 INTRODUCTION

The Material Aid Handbook is intended to serve both as a guide to Mercy Corps staff and as a resource to external Collaborating Agencies as they plan, carry out and evaluate material aid projects. This handbook also provides general information about the Material Aid (MatAid) department and MatAid programming. This handbook will be revised and updated as needed, and feedback on how to improve future versions is welcome.

1.2 ABOUT MERCY CORPS Mercy Corps works amid disasters, conflicts, chronic poverty and instability to unleash the potential of people who can win against nearly impossible odds. Since 1979, Mercy Corps has provided more than $1.5 billion in assistance to people in 106 nations. Supported by headquarters offices in North America and Europe the agency's unified global programs employ nearly 3,500 staff worldwide and reach more than 16.4 million people in more than 35 countries. Over the past five years, more than 89 percent of the agency's resources have been allocated directly to programs that help people in need.

1.3 ABOUT THE MATERIAL AID DEPARTMENT MatAid (known in other agencies as a Gift-in-Kind department) facilitates the donations and transportation of materials from a donor to a project. It also provides logistical support and services to the entire organization, as well as to selected NGO Collaborating Agencies.

1.3.1 MatAid Goal: MatAid exists to support Mercy Corps’ mission and programs through: effective use of resources, outreach to partners and increasing agency visibility.

1.3.2 Material Aid Objectives are to: • Support projects that create community-wide benefits • Support sustainable and structured programming • Support and create partnerships with local Governmental and

non–Governmental Organizations (NGOs) • Support program development • Support disaster relief

1.3.3 Type of Support Examples of donated items typically handled by MatAid include, but are not limited to:

• Apparel can be used in general relief settings and may be provided as

incentives for volunteers or for participation in community events • Construction commodities such as latex paint, steel rebar and

roofing - can be used in both infrastructure and vocational training projects


• Education & Technology items such as books, computers, and school kits can strengthen schools and equip libraries that reach entire communities - help to create Internet-access centers, support computer training and build the capacity of local schools, NGOs and communities – and help to provide basic school supplies to students

• Medical & Health – help strengthen the capacity of hospitals and clinics to meet local needs and improve health delivery services

• Relief Supplies – (such as blankets, hygiene kits and other items) can be used to support emergency response efforts in the immediate aftermath and recovery phases of a disaster or conflict

• Safety Equipment – (such as safety goggles, work gloves and rubber boots) can be useful in post-disaster settings and can complement building projects

• Sports Apparel & Equipment – (such as Nike apparel, footwear and equipment) can be used to complement sports programs that use sport as means to achieve broader programmatic, goals such as promoting conflict resolution or raising awareness of HIV/AID

1.3.4 Material Aid Office Locations MatAid has three offices: Portland, Oregon, United States; Penticton, Canada; and Grobbendonk, Belgium. For more information on office staff and organizational structure see Appendix A: Material Aid Department Organizational Chart.

1.4 MatAid Partnerships / Collaborations Overview 1.4.1 Nike

As part of Nike’s corporate responsibility program, Nike has committed to contributing a significant portion of its gross profits to recognized charities in support of their international charitable activities. Nike EMEA (Europe, Middle East & Africa) intends to support these charitable activities, among other things, by donating certain Nike products and/or providing financial support to Mercy Corps. This support includes providing an operating budget to fund the Network for Product Donation and Distribution (NPDD) warehouse and the warehouse workforce. Nike intends to support these charitable activities, among other things, by donating certain Nike products and/or providing financial support to Mercy Corps. For more information about the Nike partnership and how to request a donation of Nike product refer to the “Nike Companion to the Material Aid Handbook” on the Digital Library or contact [email protected].

1.5 POLICY ON MATERIAL DONATIONS As a member of InterAction, Mercy Corps is committed to utilizing materials in an appropriate manner. To that end, MatAid is guided and informed by the Interagency Gifts-In-Kind Standards of the Association of Evangelical Relief and Development Organizations [AERDO]. For a copy of the AERDO Interagency GIK Standards, please contact MatAid. Also see Appendix B: Materials Acceptance Criteria & Donation Approval Process.


1.6 FREQUENTLY ASKED QUESTIONS

Q1: Who does MatAid work with? To whom do you give donated materials? ANSWER: MatAid works with Mercy Corps field programs throughout the

world. We also work with and provide materials to other Collaborating Agencies whose work corresponds to our mission, objectives, and program guidelines.

Q2: What kinds of materials do you accept from donors?

ANSWER: We accept a range of materials, but generally concentrate on those items that can be successfully incorporated into projects that contribute to overall community development - such as computers for a community center or equipment for children’s sport and recreation programs. (Appendix B: Materials Acceptance Criteria & Donation Approval Process)

Q3: Can material aid help fulfill a “match” requirement?

ANSWER: Yes, if your program is funded by USAID or a private donor who allows material aid to be used as Match.

Q4: How are the donated items transported to the field?

ANSWER: MatAid generally ships items via ocean freight in standard ocean containers. A 40-foot container typically holds 18-19 pallets, and/or up to 50,000 lbs. or 23,000 kg of material.

Q5: Can MatAid send my program a container with a variety of items, such as

some computers, a refrigerator, some construction tools, 1,000 books, and a lot of sport gear? ANSWER: MatAid is generally unable to prepare and provide “mixed”

shipments, as we do not have a large warehouse or the staff necessary to store and inventory a variety of donated supplies. Also, to save on transport costs and reduce environmental impacts, we try to ship goods directly from the donation source whenever possible. MatAid occasionally ships some material directly from our Headquarters in Portland, Oregon. This sometimes makes it possible to add other items to a shipment. However, even under these circumstances a single material will usually make up the majority of the shipment.

Q6: Who pays for shipping? ANSWER: This varies from project to project. Different possibilities include:

• Collaborating Agencies pay the entire shipping cost.

• The materials’ donor pays all or some of the costs.

• MatAid provides some shipping funds.

Most often, funding comes from a combination of sources – for example, the Mercy Corps field office or other Collaborating Agency


may pay for inland transport costs and MatAid may cover the ocean freight costs.

Q7: I am a staff person at a Mercy Corps field office. What if my country office

secures a donation of goods directly from a supplier? When/how should I involve MatAid? ANSWER: Mercy Corps field offices are sometimes in a unique position to

acquire valuable donated materials. Please involve us from the very beginning of the donation process, as we can assist you with logistics, documentation and other factors that influence the success of a Material Aid Project. You can also assist us and Mercy Corps in general by ensuring that your project follows our guidelines for project management, tracking, monitoring and reporting.

Q8: How do I find out what kind of material aid is available? Can I request that

MatAid try to get certain items donated to my program?

ANSWER: The best way to find out what is currently available is to contact the Material Aid staff (Appendix A); Mercy Corps Collaborating Agencies should include their Program and Finance Officers in all correspondence. MatAid carefully screens all donation offers. If we determine that a material donation could benefit our programs we will announce it to Mercy Corps staff at Program Operations (POps) meetings and occasionally by posting information in The Globe, Mercy Corps' monthly internal newsletter. If you would like MatAid to attempt to secure specific donated materials for your program please send us a Concept Note (Appendix C: Material Aid Concept Note). After learning more about the materials you are interested in, we will determine the feasibility of pursuing possible donation opportunities.

Q9: I know of a local NGO or government agency whose programs could greatly

benefit from donated material. Can I recommend these groups to MatAid?

ANSWER: Absolutely! Please feel free to connect MatAid with information about local groups that could benefit from our support.

Q10: What are some examples of programs that have successfully incorporated donated materials into their projects?

ANSWER: Programs that have successfully used materials to strengthen existing projects and, in some cases, to create new initiatives include:

• Sports for Peace and Life project in Southern Sudan, 2006 - 2007 — Nike product was used to support a sports initiative which included an HIV/AIDS awareness and


conflict prevention campaign targeting youth and young adults. (Implementing Agency: Mercy Corps)

• Paint Project, Guatemala, 2005 — After Hurricane Stan, communities used paint to restore schools, health centers and libraries. (Implementing Agency: Mercy Corps) Paint has also been used in Cambodia and other countries to support vocational training for at-risk youth.

• Computers, El Salvador, 2003 & 2007 — Computers sent to elementary schools created computer labs that made schools eligible for government funding to expand into high schools. (Implementing Agency: La Asociación para el Desarollo Humano)

2 Steps to Planning a Materials Project The following steps apply to both to Mercy Corps field teams as well as to other Collaborating Agencies. See Section 2.5 for a table providing a quick guide to the documentation process and the activities that surround each document. Please note that the timing and schedule of document submission varies from project to project. Some material aid projects can be completed within several weeks while the planning, shipping and implementation of others can take up to a year or more. MatAid recommends that project planners incorporate material aid planning at the earliest stage of project development. Doing so enhances the usefulness and strategic value of donated materials. Including a material aid component to a funding proposal may also make a proposal more competitive.

2.1 STEP 1 - PLANNING PROCESS 2.1.1 Concept Note

Once a Collaborating Agency has identified which materials would be most useful to its project the first step is to submit a brief Material Aid Concept Note to MatAid. This document provides a short description of the requested materials as well as where and how they will be used. (Appendix C: Concept Note) MatAid will review the Concept Note to determine the best course of action in acquiring the donation of materials.

RATIONALE: The Concept Note helps to ensure successful material aid projects by answering critical questions at the outset. Answers to these questions help guide initial research and optimize material aid acquisition.


2.1.2 Proposal Once a donor is identified, MatAid will ask the Collaborating Agency to expand the Concept Note into a Proposal. (Appendix D: Material Aid Proposal)1 The Proposal describes how donated materials will be used and presents key details of the project plan. It describes:

• Materials requested • Intended project results • Intended use of materials • Recipients of materials • Distribution of materials • Anticipated project challenges and their possible solutions • Project monitoring, evaluation and measurement of impact

RATIONALE: The proposal is intended to serve as a guide, helping Collaborating Agencies carefully plan a material aid project. The proposal process also ensures that all aspects of a material aid project are taken into consideration to prevent potential problems. Proposals are also valuable because they:

• Educate MatAid on the proposed projects

• Help MatAid identify areas in which it can be of assistance with project development

• Are frequently required by donors, and are a good donor-relations mechanism

• Provide MatAid a comparative basis for determining who to provide materials to when materials are in high demand

2.1.2.1 Proposal Acceptance Criteria Once a proposal has been submitted to MatAid, it will be assigned to one of the MatAid staff, who will review it with at least one additional staff member. The staff members may request revisions and/or additional information before submitting the proposal to the MatAid Director for final consideration. Other considerations include:

• Project sustainability • Relief of human suffering • Stimulation of transformational, sustainable development • Increasing the self-reliance of local communities

1 Project Proposals for Nike product follow a slightly different format. For more information see the MatAid Handbook – Nike Project Companion or contact [email protected].


2.1.3 Important Considerations It is important to recognize that accepting donated materials may impact Collaborating Agencies’ regular operations and budgets. These issues should be addressed in the Proposal. 2.1.3.1 Hidden Costs – These are costs associated with the

importation of materials that the Collaborating Agency must bear. They may include:

Charges levied by Customs (duties, taxes, bond or processing fees).

Costs associated with hiring a local customs broker or clearance agent.

Terminal handling charge (THC), for the offloading of the container in port.

Demurrage or storage fees incurred during the clearance process.

Cost of travel to the local Customs office.

Local delivery charges from the port to the warehouse (in some cases these charges cannot be prepaid by the Shipper).

Cost of maintaining materials (E.g. computer maintenance, etc.) if applicable.

Staffing costs, including some or all of the following: identifying needs; sorting and inventory; warehousing and transportation; distribution; monitoring and evaluation; and report-writing.

2.1.3.2 Storage

• Storage facilities should be large enough to adequately hold the requested materials, suitable for same and secure. Depending on the local climate and the duration of the storage period, a climate controlled facility may be necessary.

• A 20’ container requires a storage facility of at least 250 to 275 square feet (23 to 26 square meters).

• A 40’ container requires double the amount of space, or 500 to 550 square feet (47 to 52 square meters).

• Mercy Corps field offices should refer to the warehousing guidelines outlined in Office-in-a-Box.

2.1.4 Duty-Free Importation Status

MatAid recommends that Collaborating Agencies have from the ability to import commodities duty-free. Duty-free status (an official letter, a certificate, etc.) varies from country to country. Some governments are willing to provide an organization with blanket duty-free status for a specified period of time, while others only grant duty-free status on a shipment-by-shipment basis.


Prior to a shipment, recipients should contact the appropriate authorities to ensure they have all documentation to successfully complete importation. If a Collaborating Agency does not have or is unable to obtain duty-free importation status it may want to consider working with a group that does have this status and is willing to import materials on its behalf.

2.1.5 Agreement

After approving a Proposal, MatAid typically prepares an Agreement clearly describing the responsibilities and expectations of each party. (Appendix E1: Agreement) If amendments to the agreement are needed, the Agreement is modified using the Agreement Addendum (Appendix E2).

RATIONALE: Having responsibilities (particularly financial ones) clearly defined in writing at the outset of the project mitigates the potential for future disagreements and misunderstandings.

2.1.6 Fair Market Value Statement The Fair Market Value (FMV) statement is usually provided by the donor and is an estimate of the donated product's value at the time of donation. MatAid customarily prepares this documentation in collaboration with the materials’ donor. (Appendix F: Fair Market Value Statement)

2.2 STEP 2 - SHIPPING PROCESS 2.2.1 Freight Arrangements

MatAid is responsible for negotiating freight rates and choosing a Freight Forwarder for the shipment. Unless the Consignee has a preference for the routing or point of entry into the recipient country, MatAid generally chooses the lowest cost quote for the shipment. Other quotes may provide for faster routing or different points of entry (and customs clearance), however, without specific advice on the Consignee’s part, the lowest quote will prevail..

It is recommended that the Collaborating Agency obtain or request that MatAid obtain insurance for the goods. MatAid does not as a rule insure each shipment. Any losses due to theft, damage or total loss of a shipment are therefore not insured and no substitute donation will necessarily be provided. Please consider this carefully and if applicable, request or provide insurance. After a Freight Forwarder has been chosen, the shipment is booked and the loading date and time scheduled. Once the container is loaded, the doors are closed and sealed with a numbered clasp. Usually, the seal should be broken only in the presence of the Consignee and the container should not be opened in transit except by government authorities. When possible, MatAid will take pictures of the loaded container (with the doors open) to provide a point of reference for the Consignee. Although a broken seal is generally enough evidence that the container


has been tampered with in transit, having a photo with which to compare the damage or loss can be helpful.

2.2.2 Customs Documents

MatAid is responsible for providing the Consignee with the customs documents for the importation of the shipment at its destination. There is a standard set of four customs clearance documents generally required for the importation and clearance of any shipment:

Non-Commercial/Proforma Invoice Donation Certificate Inventory/Packing List Bill of Lading/Air Waybill

(Appendices G1-G4 for Sample Customs Documents) Depending on the destination and the type of cargo additional documents may be required. It is the recipient’s responsibility to advise MatAid of any additional documentation needed. A few of the more common examples of additional documents are:

Fumigation Certificate (usually for clothing or plush toys) Phytosanitary Certificate (for most animal or plant products,

especially vegetable seeds) Certificate of Origin Certificate of Analysis (for pharmaceutical products) Statement of Quality (for pharmaceutical products)

Once the container (or airfreight shipment) has been loaded, MatAid sends two sets of standard customs clearance documents (one set marked “ORIGINAL” and the other “COPY”) to the Consignee via air courier. When possible, copies are also sent electronically and include a courier tracking number.

It is critical that the party writing the Proposal recognize the difference between an office address, mailing address and delivery address. (In some cases they may be one and the same.)

• Office Address: This is the physical location of the office that is shown for the Consignee.

• Mailing Address: In order to send the documents by courier a mailing address where the recipient can sign for receipt of the documents is necessary. Post Office boxes are NOT acceptable in most cases. A physical office address is usually best, provided the office is regularly staffed during normal business hours.

• Delivery Address: This is the physical address to which the shipment is delivered. It is not advisable to have a 40 ft. container delivered to an office when the actual warehouse is in a different location. The Carrier is NOT obligated to drive to another location and will likely refuse to do so thus forcing the Consignee to accept delivery (and therefore unload) at the listed delivery address. Alternately, the Carrier could charge the Consignee an arbitrary amount to deliver to the warehouse address.


• Notify Party: The Consignee may want to make use of a “Notify Party.” This can be a designated staff person who will clear the shipment through Customs, another knowledgeable individual or a commercial Customs-clearance agent. The Notify Party will receive arrival and clearance notifications, liaise with the actual Consignee, as well as deliver requested documents to the local Customs office.

NOTE: It is VERY important for staff to be aware of any expected courier deliveries. A common and avoidable problem is that the customs documents sent by courier are simply “filed” because no one knows what they are and why they have been sent. The papers must be acted on immediately. It is also very important that the customs documents not fall into the wrong hands, as a Carrier will release a shipment to the bearer of the documents, regardless of whether or not they represent the intended recipient of the material.

2.2.3 Other Considerations

2.2.3.1 Pre-Clearance/Inspection In some countries there is a “pre-clearance” process that needs to be undertaken before the shipment is physically loaded and shipped from the point of origin. Goods may need to be inspected prior to or at the time of loading to ensure that the proposed shipment is intact and properly accounted for. Some countries require the use of a specific company to provide this service. Collaborating Agencies should check with Customs offices to determine if the Pre-Clearance and/or Inspection processes are required.

2.2.3.2 Estimated Time of Arrival

MatAid informs the Consignee of the estimated time of arrival (ETA) and any vessel (ocean/air/ground) information it is given. However, in the case of ocean freight, this information may change due to delays or capacity issues. It is therefore necessary that the Consignee maintain close contact with the shipping company’s agent (listed on the Bill of Lading) as the arrival date approaches.

2.2.3.3 Avoiding Demurrage Charges

The ETA is truly just than, an estimated time of arrival. Although rare, sometimes the shipment will arrive ahead of schedule and the moment it does the “clock” starts ticking. All steamship lines allow a period of demurrage-free days, giving the Consignee time to make the necessary Customs-clearance arrangements. This starts the moment the shipment arrives, so it is important that Consignees not wait until the ETA date to make arrangements to pick up material.

In the case of airfreight shipments, this “grace” period is very short. Consignees must be proactive to avoid unnecessary expenses by maintaining regular contact with the shipping


company agent. Please note that MatAid will not be responsible for paying any demurrage charges incurred.

2.3 STEP 3 - ARRIVAL PROCESS 2.3.1 Customs Clearance & Receipt

It is recommended that the Consignee use an experienced customs clearance agent to clear the shipment through customs. This is an optional step and the Consignee will have to pay the agent’s fees. However, unless the Consignee is very familiar with the customs clearance process, hiring an agent can save a great deal of time, effort and potential Demurrage costs. MatAid can frequently arrange for this service in advance, however, the costs will be borne by the Consignee. After the shipment arrives the Consignee will need to clear it through customs (unless it appoints a clearance agent to manage this process). The Consignee will be required to provide the customs documents discussed in 2.2.2 as well as any other applicable documents. Customs usually inspects the shipment to ensure that the goods are correctly described and suitable for importation. It is at this stage that the MatAid must be contacted if it is discovered that the seal on a container or the packaging of a shipment has been tampered with. Customs must document the issue for any insurance claims MatAid may need to file on the Consignee’s behalf. Note that failure to properly document any losses and to notify the insurance company immediately of such losses will likely result in a claim being dismissed. Each country has specific importation procedures and there are often fees and charges of which MatAid is not specifically aware. Consignees and their agents should review these issues with the customs office in advance to avoid any surprises. Once the Consignee has satisfied the customs office and the goods have been released, the shipment is transferred to the Consignee. The Consignee is then responsible for the transportation, safe-keeping and distribution of the shipment. In many cases, MatAid will have made arrangements through the Freight Forwarder to contract with a local Carrier to deliver the container or shipment to the address provided in the Proposal. In other cases, Consignees will make local trucking or final delivery arrangements. In either case, there is generally a limit on how much time can be taken to unload the container at an office or warehouse. In most cases, the Consignee will have only one or two hours to do so without incurring additional charges. It is important that Consignees ensure that there are a sufficient number of workers available to unload the container. Occasionally a Consignee may request (or it may be necessary) to assume responsibility and ownership of the container after it has been unloaded. In this case, it will likely be the Consignee’s responsibility to arrange for a crane or another method of removing the container from the truck.


2.3.2 Letter of Receipt / Inventory Receipt Once the Collaborating Agency has received materials, MatAid requires that it send a completed Letter of Receipt within 10 business days. The Letter of Receipt informs MatAid that the material has arrived, and allows the Collaborating Agency to report any discrepancies between the inventory list and what is in the container. It also lets MatAid know if materials were damaged or stolen during transport so that it can help the Collaborating Agency take the steps necessary to remedy the situation. (Appendix H: Letter of Receipt)

2.4 STEP 4 - DISTRIBUTION PROCESS 2.4.1 Project Report

The Project Report is due within six months of the arrival of the materials at their destination (i.e. Delivery Address). It should correspond to the Proposal in structure and design, and MatAid generally requires that it include information described in the Project Report Outline. It is critical that this monitoring effort be considered and understood at an early stage of project implementation, so that key information (including photos, first-hand reports, anecdotes etc.) are captured when available. (Appendix I: Project Report Outline)

RATIONALE: Reports describe how the material was used, how it impacted project participants and capture “lessons learned” for future projects. They also enable MatAid to better serve field teams and Collaborating Agencies by describing what did and did not work well. Reports also provide evidence to our auditors that donated materials were used in the field. They also help foster good relationships with donors. Some donors require reports, and all donors appreciate receiving photos of project participants with their materials. The information and photographs from reports help to provide the foundation for stories posted on Mercy Corps’ website. See http://www.mercycorps.org/donate/materialaid for examples.


2.5 STEP 5 - DOCUMENTATION RESPONSIBILITIES OUTLINE The following table provides a quick guide to the documentation process and the activities which surround each document. The documents are listed in chronological order; however each shipment is unique and documentation order may shift accordingly.

Document MatAid Collaborating Agency Donor

Concept Note * Provide Feedback * Write Concept Note - none -

Proposal * Provide Feedback * Write Proposal - none -

Freight Quote * Get Quotes - none - - none -

Agreement * Write Agreement * Provide Feedback * Sign Agreement - none -

Donation/Fair Market Value Letter

* Send Donation Letter template to donor * Arrange for pickup - none -

* Print Donation Letter on letterhead * Sign Donation Letter

Thank You Letter

* Write Letter * Send to Donor - none - - none -

Packing List - none - - none - * Send MatAid final Packing List

Customs Documents

* Prepare Documents * Send PDF to Consignee and PDF & originals to Freight Forwarder

- none - - none -

Letter of Receipt / Inventory Receipt

* Send template to Consignee

* Complete and return form within 10 business days of goods’ arrival

- none -

Impact Report

* Review report and submit copy to Donor

* Write report within 6 months of goods’ arrival.

* Receive report

Appendix A: Material Aid Organizational Chart


Material Aid Department Organizational Chart

APPENDIX B: MATERIALS ACCEPTANCE CRITERA & APPROVAL PROCESS


Mercy Corps’ Materials Acceptance Criteria and Approval Process

This document described acceptance criteria for material donations and provides a general

framework only, as material donation acceptance decisions are not an exact science.

Responsibility for acceptance decisions lies primarily with Material Aid Department staff;

however, feedback from recipients, although after-the-fact, will guide and inform future

decisions.

1 Materials Acceptance Criteria All material donations must be used in furtherance of the mission, purpose and program objectives of Mercy Corps and its affiliates. To that end, material donations will be accepted with the intent that they help to:

• Save lives • Relieve human suffering • Stimulate transformational, sustainable development • Increase the self-reliance of local communities • Further overall strategy of programs

1.1 Appropriateness • Is primarily defined at the field or recipient level and must be consistent with

Mercy Corps’ mission1. • Products which are not in keeping with Mercy Corps’ ethos will not be accepted. • Materials must be appropriate to the culture, climate, economy, political

conditions and medical/health conditions of the recipient area.

1.2 Usefulness • Is determined by the field office at the point of request. • Donations can be used in the form given; will not need a companion product(s)

which does not accompany the donation to be useful. (Unless otherwise specified and to the extent that this can be known in advance.)

• Will meet specific requests or general ongoing needs. • Will not create dependencies when product is no longer available. • Will not adversely affect the local economy.

1 Mercy Corps exist to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities.



1.3 Product/Industry Type 1.3.1 In general, material donations in the following areas represent the priority

focus for product donation: • Apparel • Construction • Education & Technology • Medical & Health • Relief Supplies • Sports Apparel & Equipment

1.4 Handling & Transportation • Due to limited staffing and storage capabilities MatAid staff will attempt to ship

directly from donors to recipients. This also helps to minimize environmental impact.

• Donor(s) will be solicited to provide transport.

1.5 Valuation – Known or Estimated • In general, items reflecting specific field needs or opportunities to establish

strategic donor relationships should be considered independently from a value to cost ratio.

• General, non-strategic, donations with a value of less than $10,0002 may not be accepted unless a designated recipient can be identified for acceptance and there are minimal or no handling costs to Mercy Corps.

• Donors must provide a donation letter citing the wholesale value of the item prior to acceptance. If the donor cannot provide documentation, an analysis will be done to estimate approximate value within thirty (30) days.

1.6 Miscellaneous

• Known or suspected encumbrances, such as expiration dating, defects, or seconds must be taken into account prior to the acceptance of any donation.

• Donation of pharmaceuticals must comply with World Health Organization guidelines.

• For donations in which Mercy Corps staff do not have prior experience or specific expertise, necessary expertise or experience must be available from other sources.

• Some material donations may have unique cultural considerations associated with them. These considerations associated with acceptance of a given donation must be known and understood by Mercy Corps management prior to acceptance by the Material Aid Director. Mercy Corps will then determine if such considerations are acceptable when they are identified. Written rationale for acceptance documented shall be documented in the Material Aid Audit Binder.

• Material Aid staff must be involved in acceptance decisions for material donations pursued by Mercy Corps Field Offices.

•

2 Donations that have strategic value, but may be worth less than $10,000, will be considered on a case-by-case basis.



2 Donation Review Process These guidelines provide overall boundaries for decisions around the acceptance criteria and approval authority for material donations. However, it is clearly recognized that the interpretation and application of such guidelines is a matter of subjective judgment rather than objective consensus. As judgments vary between individuals, there will be occasions when differences of opinion exist concerning the approval of a particular donation. In such instances, it is useful and important to establish a process which allows the expression of all opinions. It is understood that some donations require immediate decisions, and thus this process must be expedited. It must also be understood that delaying decisions may impact future donations, as well as the donation under current consideration. If an individual member of the team has concerns regarding a particular donation, the process for the review of such concerns shall be as follows:

• The staff member will first discuss the issue with her/his supervisor. • The supervisor or manager will respond to the staff member's concern in writing. • If the staff member still believes that further discussion is merited, she/he may

request that the issue be reviewed by the MatAid team. • The MatAid team shall provide a written response to the member's concerns.

APPENDIX C: CONCEPT NOTE


APPENDIX D: PROPOSAL


APPENDIX E1: AGREEMENT


APPENDIX E2: AGREEMENT ADDENDUM


APPENDIX F: FAIR MARKET VALUE STATEMENT


Sample Letter

-Your Company/Organization Letterhead-

Date Colleen Regalbuto Mercy Corps 3015 SW First Ave. Portland, OR 97201 RE: Confirmation of Value Dear Ms. Regalbuto, As you requested, we are submitting the following record verifying the estimated fair market value of commodities we donated to Mercy Corps on date. The value we place on these commodities is in accordance with IRS Publication 561, which states that “Fair market value is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.”

Commodity Amount Unit Value

$

Total Value $ I confirm that the above information is true to the best of my knowledge. Name: X Title: X Signature:_________________________________________________________ Date:__________________

APPENDIX G1: NON-COMMERCIAL INVOICE


Example

APPENDIX G2: CERTIFICATE OF DONATION


Example

APPENDIX G3: INVENTORY LIST


Example

APPENDIX G4: BILL OF LADING


Example

APPENDIX H - LETTER OF RECEIPT


APPENDIX I - PROJECT REPORT OUTLINE


APPENDIX J - SAMPLE STORY


Material Aid Story Following is an example of a story written about a project involving donated materials. The information was culled from the Material Aid Project Report. Note that the story includes:

• A story title and byline • Background information on why the project was necessary • Information on why materials were necessary • Description of how the material donation was used • Includes a caption for the photo supplied for the story as well as photo credit (which may not

be applicable in all cases)

Painting a Better Future by Colleen Regalbuto Last fall Hurricane Stan struck Guatemala hard, leaving devastated lives, properties, and communities in its wake. Stan left thousands of people homeless, killed hundreds and caused extensive damage to community structures such as schools, community centers and health clinics. Immediately after the hurricane Mercy Corps responded with disaster relief and, as the crisis abated, began the transition to long-term recovery programs. Among the programs was infrastructure rehabilitation. To assist with this effort, Mercy Corps’ Material Aid Department shipped 1,000 gallons of latex paint to the Mercy Corps post-Stan Water and Sanitation Project in Sololá. Community members painted schools, health centers, community centers, government offices, libraries and latrines. In participating communities, support was high with, on average, at least one member of each family contributing to painting activities. “Involving community members in the reconstruction of their communities and affording them the opportunity to have clean, brightly colored structures helped to alleviate some of the emotional stress that is currently affecting large numbers of people,” said Janeen Simon, Mercy Corps Guatemala Program Coordinator. Photo Info:

• Caption: [GT_Paint_06-034] Children proudly display a freshly painted school in Pantanatic.

• Photo Credit: Matthew Schwartzberg / Mercy Corps