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9/11 Tests Charities' Sense of Fairness By Mark Fazlollah and Peter Nicholas WASHINGTON - Seven months after the Sept. 11 terrorist attacks launched an unprecedented disaster-relief effort, the nation's two largest charities have collected more than $1 billion and distributed 16 cents on the dollar to the families of those who were killed or seriously injured. The rest of the money donated to the American Red Cross and United Way has gone to aid those who lost jobs, to help New York City recover economically, or into large reserve accounts for future needs related to the attacks. Some family members and social workers criticize the way the money has been disbursed, pointing out that early fund-raising campaigns promised "to provide relief to victims and their families." Spokeswomen for the charities say that the definition of victim can be broad and that the funds have done their best to be fair. The debate illustrates the challenge facing the nation's private charities, which must sort out the various wishes of millions of donors to ensure that perceptions match reality when the money is handed out. "Because you can't do everything, you have to determine who you're going to help, and you have to do it in as close accordance with donor intent as you know how," said Jeanine Moss, spokeswoman for the United Way's September 11th Fund. "And invariably people don't agree with what your determination is." Carie Lemack of Framingham, Mass., who lost her mother aboard American Airlines Flight 11, which hit the North Tower of the World Trade Center, is among those who are unhappy with the amount that family members received. "People assumed the money they were giving was going directly to victims' families, and that was just not the case," said Lemack, president of Families of September 11. "If they raise the money in the name of the people who suffered the losses... the money should go in whose name it was raised." The Red Cross' Liberty Disaster Relief Fund has collected $966 million and distributed about $50,000 in cash to each of more than 3,200 families who lost someone upon whom they were financially dependent. It plans to increase that donation to an average of $109,000 by Sept. 11, upping the proportion for families from 18 cents to about 38 cents on the dollar. "I think it's pretty phenomenal what we've done," said Red Cross spokeswoman Dana Allen. The United Way has collected $470 million and handed out about $20,000 per family, about 14 cents on the dollar. It said it had no immediate plans to distribute more cash, except in emergencies. Many family members also will receive money from such sources as insurance policies and the government, although no federal funds have been released yet. Families of firefighters and police officers who died in the rescue attempt have received more than a half-million dollars each in addition to the $70,000 from the Red Cross and United Way. The United Way has given about 30 percent of the money it collected to 32,500 workers who said they lost their jobs or some portion of their income and to 3,000 Lower Manhattan residents whom the disaster forced out of their homes. Each individual received about $4,000. About 49 percent of the money, $232 million, is in reserve for long-term needs such as counseling and legal and financial advice. The Red Cross has given 28 percent of its fund to those who were displaced or lost income. About 15 percent is being used for New York's reconstruction efforts and other projects. Its reserve account is about 20 percent of the total raised. Moss said some donors might have been confused about where the money was to go. Immediately after the attacks, the United Way said the September 11th Fund was "established to provide relief to victims and their families." Many corporations used the same "victims and families" phrasing in fund-raising efforts on behalf of the United Way and the Red Cross. Moss said that the word victim was subjective and that recent statements had made it clear that money also was going to help New York rebuild. "There were some early press releases, apparently, that said 'victims and families,' " she said. "However, the vast, vast majority - certainly by the time I was there in October - every piece of communication said 'victims, families and communities.' We feel that was very clear." More than two million people donated to the United Way fund alone, highlighting the difficulty in determining the intent of those who give. Some who answered the call said they had a clear impression of where their money was going; others said they trusted the charities to spend the money as they saw fit. Two Western Pennsylvania high schools competed to raise money for the September 11th Fund, jointly donating $7,000. "I thought it was going to the victims and the workers on the ground," said Bart Rocco, principal of Thomas Jefferson High School outside Pittsburgh. "We expected it to take care of the victims and the families of the victims," said Terence Doran of rival West Mifflin High School. Most criticism from victims' families and aid workers has been directed at the loosely defined reserve accounts, particularly as some immediate needs reportedly have not been met. The Red Cross said its goal was to distribute 90 percent of its funds by Sept. 11. Moss, of the September 11th Fund, said her charity would make an announcement in "a couple months" about its plan for the reserve funds. The president of one of the nation's leading charity watchdog groups said charities should not hold back such large amounts. "Once this money is off the radar screen of the media, the public, and government regulators... [it] may go to services that are only tangentially related to the crisis," said Daniel Borochoff, president of the American Institute of Philanthropy. But Moss pointed to the bombing of the Murrah Federal Building in Oklahoma City in 1995, which killed 168 people and injured more than 500, to illustrate the drawbacks of giving away all the money immediately. More people sought mental-health counseling a year after the attack than immediately afterward, she said. More than a dozen social workers who are assisting families said it was too early to put money in reserves. Ilse de Graaff, a Red Cross Liberty Fund worker who is handling the cases of 31 families of the World Trade Center dead as well as one seriously injured victim, said the families had been unable to meet some pressing needs with the $70,000 they had received. Some families did not have health or life insurance, including one in which a child needs an eye operation. Another expense is funerals, as remains continue to be identified through DNA, she said. "They've got a lot more expenses than we know about," said Karen Model, who is coordinating aid to Pennsylvania families of those killed in the attacks. "They lost breadwinners. Who do they have to go home to at night?" (http://www.philly.com/mld/inquirer/news/front/3159525.htm) To return tothe Red Cross Gateway page, click HERE return to the “Current Boycotts” index, click HERE To return to the HOME page, click HERE To leave a comment, click HERE To join our confidential EMail list, click HERE To navigate further throughout the Boycott Network, please use the links on either side or the bottom of this page.
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