Almost two months after the Sept. 11 national tragedy, and sandwiched between two Congressional investigative hearings about how charities are distributing donations to victims and their families, New York City Mayor Rudy Giuliani announced that the city-sponsored Twin Towers Fund will finally begin to release funds. The Twin Towers Fund had accumulated $85 million since Sept. 11.

    Donors to the Fund include a four-year-old girl who gave 60 cents, and husband-wife celebrities Arnold Schwartzenegger and Maria Shriver who contributed $1 million. Several corporations made six- and seven-figure donations, according to Tamra Lhota, president of the New York City Public/Private Initiatives which oversees the Fund.

    Of the 190 charities which collected about $1.2 billion for all victims and their families, the Twin Towers Fund is third in collections, behind the Red Cross and the September 11th Fund established by the United Way and the New York Community Trust.

    At a press conference Nov. 7, Giuliani said "hopefully before Thanksgiving" at least $100,000 will be given to each of the families of the 406 New York City firefighters, police, and New York/New Jersey Port Authority personnel killed in the Twin Towers destruction. He emphasized that "every single penny" collected will go to those groups. He did not include any other uniformed services group previously identified by the Twin Towers Fund as potential recipients.

    Giuliani says that for the remaining $45 million that will not be distributed by the end of the month, as well as future donations, "we really need more time to figure out what's the most equitable way to distribute that."

    The day of Giuliani's announcement was one day after the oversight subcommittee of the House Energy and Commerce Committee had just concluded formal hearings into possible frauds in solicitation of funds. The oversight subcommittee of the House Ways and Means Committee, which often deals with issues related to the Internal Revenue Service and charitable donations, was scheduled to hold formal hearings the next day.

    To a series of questions about the coincidence of the release of funds the day between the two major hearings, Kim Serafin, a representative of the Mayor, said on Nov. 8 "you are reading too much into it." She claimed the release of funds was "not related" to a growing public concern or to the hearings themselves.

    Nevertheless, the distribution of funds as outright gifts is a policy change. "The most expeditious way to assist [families] is through FEMA [Federal Emergency Management Agency] or the Red Cross," said Tamra Lhota, Oct. 24, six weeks after the disaster.

    She indicated at that time there were "no immediate plans" to distribute funds to families. "If needs [of the uniformed personnel] are not being met," said Lhota, "we stand here to help." The intent, at that time, she said, was for families to seek assistance "for unmet needs" from the Twin Towers Fund "only after" they received assistance from other agencies.

    The web site (www.twintowers.vista.com) is little more than an appeal to donate funds on-line. Persons calling the Fund's toll-free number (877-870-4278) first hear a recorded solicitation for donations. Callers who spoke to someone at the phone bank were often told they first had to apply to FEMA which would then provide information to the Twin Towers Fund for supplemental assistance.

    "That is not accurate," says Russ Edmonston, FEMA public information officer. Although FEMA assists and advises other agencies, Edmonston says, there is no direct connection between FEMA and the Twin Towers Fund. "The Twin Towers Fund should at least be taking names and numbers," he says.

    "The best protected group are uniformed personnel," says Daniel Borochoff, president of the American Institute of Philanthropy, an independent watchdog agency. He says there are significant governmental benefits for the uniformed service victims' families. In addition, existing non-profit charities are providing a wide range of additional assistance, from food and mortgage payments to college tuition for children of the victims. The Fire Department of New York says it prefers donations be made either to the United Firefighters Association Widows' and Children's Fund or to the New York Firefighters 911 Relief Fund/International Association of Firefighters.

    Within the first week of the Sept. 11 national disaster, New York state attorney general Eliot Spitzer and his staff increased their comprehensive oversight of charitable giving "when it became evident that the scale and scope of the disaster was going to be met by an equally large base of donations."

    Part of that response was to establish a comprehensive web site. Individuals may access the attorney general's web site to learn about agencies, their fund raising and spending, and what funds are available. Individuals will be able to use an extensive search engine to find specific requirements, such as "mortgage assistance." Charities have access to a confidential database, based upon one established following the Oklahoma City bombing six years earlier, to track applications for funds. The information, says Mark Violette of the attorney general's office, is to avoid duplication of effort, make it easier for victims and their families to apply for and receive assistance, to identify needs not being met, and to reduce fraud. The attorney general transferred the database to the charities on Nov. 2.

    Since Sept. 11, about 120 new disaster relief organizations have applied for tax-exempt status, according to Steven Miller of the Internal Revenue Service. The Twin Towers Fund, which as of Nov. 12 had not yet received a tax-exempt status from the IRS, is third in collections, behind the Red Cross and the September 11th Fund established by the United Way and the New York Community Trust.

    "We have opened our hearts and wallets to the victims, and the people want assurances that their money [is] spent as effective as possible, that there is the maximum good from their generosity," says Mark Violette.

    Although most charities must register with the attorney general's office and file annual reports, Violette says his office has encouraged charities to publicly report their intentions on the use of funds and to report financial data monthly. The American Institute of Philanthropy (AIP), Charity Watch, and GuideStar, all of which evaluate charities, do not have current financial details about the Twin Towers Fund. The attorney general's web site indicates, "No description is available for this organization." Daniel Borochoff, AIP president, says his organization doesn't evaluate new charities for three years. The Twin Towers Fund "is just too new" to evaluate, he says. None of the independent "watchdog" agencies believe the Twin Towers Fund will do anything other than to assist victims and their families. But, "certain organizations have a history of experience with disaster assistance," says Violette. "Newer organizations may have the best intentions but don't have the structure or even their boards of directors established," he says.

    In contrast to these well-meaning "instant relief agencies," the American Red Cross, one of dozens of agencies with a "history of experience," was on the scene the first day, set up several mass care shelters and family service centers, and has already assisted more than 25,000 families, and provided significant support assistance for rescue workers. By the end of October, it had distributed more than 10 million meals to victims, their families, and relief workers, and spent about $150 million, mostly for victims and their families. Within the year, it plans to spend about $300 million, according to Mitch Hibbs of the Red Cross. More than 42,000 persons, about 40,000 of them volunteers, have been involved in the relief efforts. About 2,700 individuals from the Red Cross's Disaster Services Human Resources department (DSHR)--a highly-trained and experienced volunteer force specializing in family services (social work), mass care, logistics, mental health, health services, damage assessment, and records and reports--are on the scene at the three disaster sites at any time, says Hibbs.

    Mayor Giuliani may have had the most altruistic intent when he created the Twin Towers Fund. He may not have seen it as a way to control some donations. He may not have seen it as PR for himself or the city. He may not have seen it as a way to bridge a gap with some of the media who have been critical of his administration, but have now become the Fund's boosters. And, he may not have seen it as a way to improve relations with the city's uniformed services, with whom he has had a series of confrontations.

    But, the politically-savvy mayor should have investigated all other funds that were in place, had the resources, and were ready to assist the families of all who were affected by the disaster. Had he done so, he would not have waited two months until the heat of Congressional hearings to change a policy, one created with good intentions but without a lot of thought. He would not have waited two months to distribute funds--undoubtedly more than anyone had thought possible. And, had he investigated other available charities, and realized they were serving the uniformed services, the 60 cents that a four-year-old girl donated and the $1 million that two New York celebrities donated to the $85 million fund might have gone into other long-standing organized charities, including those maintained by the firefighters who say they preferred donations be made to their own support charities which have maintained comprehensive assistance for firefighters and their families.

    For more information: Twin Towers Fund

(www.twintowersfund.vista.com or www.nyc.gov/html/em/twintowersfund.html), New York State attorney general (www.oag.state.ny.us or www.wtcrelief.info), Federal Emergency Management Agency (www.fema.gov), American Institute of Philanthropy (www.charitywatch.org), Philanthropic Research Inc. (www.guidestar.org), Chronicle of Philanthropy (www.philanthropy.com), and Floating Head's Charity Watch (www.charitywatch.com).

    Assisting on this investigation or providing information were Rosemary Brasch and 38 other individuals, many employed in governmental agencies or charities who asked not to be publicly identified.

Copyright 2001 Walter M. Brasch