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Billions of Dollars in Donations Post-Katrina, Yet Very Little Relief
August 03, 2006 12:53 PM
A year ago, Americans donated over $4 billion for Katrina relief. But a new report from a charity watchdog group warns that much of the money was used ineffectively, if at all.
Trent Stamp, President of Charity Navigator, conducted the study. Stamp traveled to the Gulf Coast to investigate the work of several charities, including the American Red Cross.
He learned that Americans are a giving people in time of need, and the hustlers and con men know it.
Stamp says one of the biggest mistakes made in the days after Katrina was that "charities just didn't stick with what they do best." Many charities tried to provide cash assistance and "in a lot of cases the cash ended up in the wrong hands."
What happened with Hurricane Katrina charities and fraud provides powerful lessons for future disaster relief. Stamp reminds Americans looking to donate money toward relief efforts to avoid the newly formed charities in the days after a disaster.
"I think you need to stick with the brand-names, those charities that have done this kind of work before -- organizations like the Red Cross, the Salvation Army, Direct Relief International, Save the Children -- those types of organizations."
Yet Stamp also notes that even established charities, including the Red Cross, weren't prepared for Hurricane Katrina.
Local officials complained that the Red Cross was often missing from the worst hit areas and displaced residents found it impossible to get through on the hotlines. Red Cross officials have acknowledged that it was overwhelmed by the storm's immensity.
"We need to recognize that the next disaster is probably not going to be a hurricane and a levee break in New Orleans, but it's going to be an earthquake in San Francisco or a fire in Chicago," said Stamp. "So we need to learn from the past, but we need to make sure that we remember that the next disaster will be something different."
August 3, 2006 in Hurricane Katrina | Permalink | User Comments (18)
And people always asks me why I don't support charities in times of a "crisis"...
Posted by: Grant Thompson | Aug 3, 2006 3:25:32 PM
This is a shame! Money donated for disaster relief and ending up in the wrong hands is making people think twice of sending money on the next disaster. I think we need a small committe to over see that the funds are distributed legitimately. This stupid corruption needs to stop.
Posted by: Rafael Salinas | Aug 3, 2006 3:26:17 PM
and why should there be surprise about this? If an extensive investigation was done regarding this subject, I am positive one would find that this was the norm and not an anomaly.
Posted by: kim szondy | Aug 3, 2006 3:43:34 PM
I am a Katrina victim and I never received anything from anyone. Where did all the money go?
Posted by: Beth Allen | Aug 3, 2006 4:33:19 PM
Next time you want to donate in a crisis make sure you donate where it is really needed and where the tax payers are that were effected. Most people, especially the media, has focused on Katrina while Rita victims FAR outnumber Katrina victims. Rita passed just a couple of weeks after. What about them? I am sick and tired of Katrina, Katrina, Katrina. Southwest Louisiana had towns that were lliterally evaporated, totally gone. Rita victims are sturdy, hard working Cajun Americans. We didn't wait for the government to come and get us. Maybe that was the problem some Katrina victims have always waited on the government for everything. We rescued our own and helped ourselves. Financial help would have been so nice. There are poeple here that because of one bureaucratic mess or another received NO help. While others for Katrina received everything from front door rug to decorations for the free wall in a free mobile home. There are hard working tax paying Cajun Americans that received NOTHING. Just sickens me.
Posted by: Stacey Vincent | Aug 3, 2006 5:47:05 PM
We can abide some inefficiency due to the urgency of the need, but the Katrina debacle seems to have given a whole new meaning to the old adage "haste makes waste."
Let's just hope we learn from our mistakes and are better prepared to deal with a disaster of this magnitude next time.
Suffice it to say we've got a lot to learn.
Posted by: Will R | Aug 3, 2006 10:41:24 PM
Money talks.....people listen.
Posted by: FlimFlamMan | Aug 4, 2006 8:52:48 AM
I bet if there is an earthquake in San Fran or a fire in Chi town there won't be a problem getting them relief in a timely and effient manor. sounds to me like they are saying.." better luck next time New Orleans"
Posted by: AWL | Aug 8, 2006 1:43:24 PM
yes, there are dishonest people out there trying to benefit everyway they can, whenever they can --even in times of crisis. however, there are organizations out there that are honest staffed with honest people. Fashion Delivers is one of them.
we raised over $6 million worth of products since sept. 2006. the majority of the products were sent to help victims in the Gulf States --Katrina & Rita alike. we expanded our reach to help those in need, living in poverty because organizations in the affected areas were stretched beyond their means. rather than letting good products go to waste we found others who could use them.
we knew our limits so we partnered with a more experienced not-for-profit, KIDS, with over 20 years of experience. because of this partnership, we received, processed and distributed our first donation (over $20,000 worth of clothing) within 2 weeks of our inception. together we raised over $12 million for victims in the Gulf States.
it's easy to generalize and discount new non-profits because of their inexperience and lack of reputation but you may ultimately end up not helping the people who these agencies that are truly reaching out to do good.
Posted by: nancy | Aug 8, 2006 6:28:33 PM
I served in the Texas State Guard on OP Katrina and Rita... I saw it all. People were more concerned about getting FEMA Credit Cards than taking care of their children. People supposedly on welfare that had three cell phones and a pager. It was even reported that People were trading Wal-Mart cards for sexual favors.
When these people did get money they bought the things they needed to survive: Play Station, a big screen TV, $200.00 Sneakers... Watches...
And, as of this date, 8000 of these idiots are STILL in Houston whining because they have no job and no one will pay their rent.
Houston's Motto: GO HOME!
Posted by: Anonymus | Aug 10, 2006 11:36:59 AM
I am a case manager working with evacuees in TN. I want you to know that alot of money was spent to provide long time case managment to those in need both Katrina and Rita victims. SO if you need help please look up Katrina AId today find the one near you. Hope that helps.
Posted by: Stacy | Aug 18, 2006 3:46:23 PM
I am tired of hearing that "Katrina victims" are "takers" and that those affected by Rita are "hardworking Cajun Americans". I can tell you that there are 2 types of Katrina survivors: those who wait for help (and take and take) and those who didn't. There too are hardworking Americans (mostly ELDERLY no less!) affected by Katrina. Mostly in MS. Seems MS has been totally overlooked, and in the same boat so to speak as Rita survivors (I don't like using "victim" as a term). I can tell you of SO many who were denied help by Red Cross, and to date have gotten NO money from insurance (even though they had wind, hurricane, fire, etc)And in the case of flood insurance...not enough to cover rebuild of a house. For example a house costs $100K to rebuild, but those who have--a year later!-- received insurance money only got around 25k. No grant money received today thru Gov. B's program. As a matter of fact, they are still on phase 1 of that, and our elderly friends (ages 85 and up!) are at phase 3! I guess FEMA plans for them to live in a trailer for 3 years...hoping they'll die first?
It's not just one case either...it's multitudes. Furthermore, in Pass Christian I can tell you that there are still those living in tents and even in their vans b/c they NEVER got a trailer or anything. Don't think the only Katrina "victims" are like the thieves and cons you hear about...or that they are only in NOLA. You are sorely mislead by the media and misinformed.
Posted by: lisa | Aug 21, 2006 11:17:10 AM
The Salvation Army. They are the ONLY national organization I would ever send money to. I have seen them in action from our filling sandbags to stop the Pacific Ocean from washing away homes and having the Red Cross CHARGE the Marine Corps 'volunteers' for coffee on a cold winter's day to Hurricanes Bertha, Fran and Ivan, where the Red Cross was dazed and confused while the Salvation Army was organized and ON THE JOB...to stay.
When Katrina hit, our blog linked to the SA's website for anyone who wanted to donate and gave our whole hearted approval. They have been magnificent in every situation I've ever had to deal with them and I trust them to use my hard earned donations wisely.
The Red Cross should loose their Congressional mandate permanently.
Posted by: tree hugging sister | Aug 22, 2006 2:18:03 PM
Okay...so which is it? In one instance, we're told how the government and charities moved too slowly, and help and rebuilding were unnecessarily delayed. So they sped up the process. Now, we're told how the government and charities moved TOO FAST, and didn't get enough bids. Face it, in the face of serious disaster or distress, efficiency will fall far below the poor levels it normally maintains in the best of situations.
Folks, NOTHING IS PERFECT. Should these organizations have stayed out until they had everything figured out and planned? Or should they have stepped in, worked what they could as soon as possible, making changes they hoped would be effective? They tried to do what they could, realizing that there was potential for abuse, but knowing that the greater potential was to provide help.
Why did they give out cash and gift cards? Because people were bellyaching that it would take too long to cut checks, and then where would the victims get them cashed, anyway?
Stop complaining, and stop blaming the extreme cases for why you don't give to charities. You don't give because you don't want to give. That's fine, but just don't make excuses. If you truly believe you can do a better job of it, you should be volunteering in the disaster zones, and working to become a decision-maker in the charities.
I get so wearly of this constant complaining. No matter what these organizations do, it failed to achieve the perfection of the whiney observer, so it's called "wasteful and incompetent." Try your hand at fixing the problems you perceive, instead of constantly complaining about them from your warm house with the computer, high speed internet, and cable TV.
Posted by: markusdt | Aug 24, 2006 5:04:43 PM
Nothing is perfect, but did any of you see what happened when the charities poured in resources? The lying, cheating, lazy and simple-minded residents of NO were looking out more for making a quick buck through theft, scam or hustle than actually picking themselves up with the assistance. I was down there working the relief efforts. I met some of the sorriest, laziest and dumbest people you can imagine. You try to help them and they are asking when they are going to get a real house to live in. They did not own a house in the first place. Honest people in other cities raise families living in apartments and would never angrily tell someone to F off because they don't want a trailer - they want a three bedroom house to destroy with their giant family of mom, dad and baby.
We could dump all the money spent on Iraq to these lazy people and they still would be asking for a handout later. Maybe there were some decent people. I just did not meet any in my five weeks working ten hour shifts seven days a week.
People there need to wake up and be a little thankful they are alive and living in a country that cares at all.
Posted by: Sick and Tired of the BS | Sep 1, 2006 7:04:55 PM
I lost my home and my town and 3/4 of my Parish in Plaquemines Parish Louisiana where Katrina first came ashore...sadly those of us who were hit hardest have not seen much practical help and are now facing serious issues. I think we all would like to know...WHERE DID ALL THAT MONEY GO?
Posted by: Trisha | Jan 4, 2007 2:21:19 PM
trisha, i keep asking that question and still haven't recieved an answer. it's great when you can spend other people's money freely. something needs to be done about that.
Posted by: vanessa | Aug 24, 2007 1:14:48 AM
Trisha,
If you live in Louisiana as I do, you know where all that money went, but I sure understand why you would want to ask that question. I ask myself everyday as a hard working Louisiana American, why I stay here, why do I continue to hope things will change. I lived in Mid City New Orleans when the storm came, I evacuated, thinking it would just be for a couple of days, well days turned into weeks, which turned into a year before I was able to move back. My house was not flooded but looted, everything not taken was destroyed (including my house). All my pictures of my children, my keepsakes, and my entire life up till that time destroyed because it was just not worth the effort to steal. (Guess it was worth the effort or “fun” to destroy) I was lucky. I was able to move to Houston and keep my Job working remotely. I never even took any FEMA money because I could work and take care of myself, No assistance because I felt that I should leave the assistance money to those that really needed it, what an idiot I was. My life savings I spent in replacing what I had lost, yet since the storm I have talked to many that became rich from the hurricane with the donations of hard working people with the best intentions of helping out those of us facing an unprecedented disaster. These people are proud of it Trisha! Proud that they knew how to work the system, and line their political and business pockets with the pain of Katrina victims. I wish you the best of luck, but like you I no longer have a couple of nickels to rub together to help, now I am making it, I will survive but not without asking the same question as you, even though I know the answer… “WHERE DID ALL THAT MONEY GO?”
Posted by: Steve Hook | Jul 9, 2008 6:39:53 PM
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