September 11th Fund Testimony at W&M Hearing on Charitable Groups' Reaction to Terrorist Attacks

TESTIMONY OF

THE SEPTEMBER 11TH FUND

[2] Let me start by explaining who we are and how we work. The September 11th Fund was established by The United Way of New York City and the New York Community Trust to provide a way for millions to help meet the immediate and longer-term needs of victims, their families, and the communities affected by the terrorist attacks of September 11.

[3] Both of these organizations have a long history of helping people help others. They do so by finding, choosing and funding nonprofit organizations and agencies with the expertise and ability to provide whatever help is needed. Using the expertise and experience of both organizations, the September 11th Fund was able to move quickly, making over 80 emergency grants to meet the broad array of needs that have arisen and will continue to arise as a result of the tragedies of September 11th.

[4] Thus far, we have made a total of $47 million in grants -- supporting agencies that provide cash assistance, legal counseling, grief therapy, job training and placement and other services for victims. We believe that we've made it possible for over 16,000 people to find and get the emergency help they need. However, the Fund must also help meet the longer-term needs of victims, their families and affected communities, and we are working with others to do just that. At the core, what every one of us wants is to help people and communities rebuild their lives.

[5] To date, more than a million people and many corporations and foundations have pledged a total of $337 million to the September 11th Fund /1/. More than $275 million has already been collected. Administrative costs of the Fund have been raised separately by The New York Community Trust and The United Way of NYC -- therefore 100% of donations to the September 11th Fund will go directly to grants to help victims, their families and affected communities.

[6] There are three points about the work that we are doing that I would like to make:

o First, immediate needs are being met in the fastest way

MEETING EMERGENCY NEEDS

[8] On September 11th, the United Way of New York City and the New York Community Trust created The September 11th Fund as a joint response to the terrorist attacks on America.

[9] That very day, a web site, www.september11fund.org, was created to accept online donations and describe the Fund's purpose and goals. Over the next three days, the Fund organizers hosted a series of meetings with disaster relief and other nonprofit agencies to anticipate emergency needs and coordinate efforts. We received our first grant proposal on September 19th (even before we had published a formal "Notice of Available Funds"). On September 22, eleven days after the tragedies occurred, Safe Horizon began distributing checks to victims using funding from The September 11th Fund.

[10] In its first eight weeks, The September 11th Fund has reviewed and awarded 80 grants totaling $47 million to meet a range of emergency needs through established relief agencies. As a result:

o more than 16,000 checks have been written -- most on the spot

o a comprehensive resource referral guide for individuals,

MEETING LONGER-TERM NEEDS

[13] While our staff -- composed primarily of individuals "donated" from the United Way of New York City and the New York Community Trust, as well as the Ford Foundation and others -- responds to hundreds of proposals and meets with countless service providers and government agencies, we are simultaneously assessing longer-term needs.

[14] There is no doubt that we are also expected by our donors to meet the long-term needs of victims, their families and affected communities. Of course, victims and their families need financial security, but checks alone are not enough. We know from Oklahoma City and elsewhere that families also frequently need legal and financial advice, grief counseling and help with jobs and homes. The real task is not, as Nancy Anthony of Oklahoma City so eloquently described it "just dividing the pie -- it's helping people to rebuild their lives".

[15] However, even a fund with the resources of The September 11th Fund cannot do so alone.

[16] This brings me to my second point: longer-term assistance must be coordinated with government and other charities, to obtain the resources that will be required, and to ensure that the needs of victims, their families and communities, are met fairly and equitably. We think there will be little support for our efforts if the results are seen as unfair or if many are left behind.

[17] To coordinate assistance efforts, The September 11th Fund was among the first supporters of a central database that would both make it easier for those in need to apply for assistance, and for charitable organizations to assess those needs and limit the duplication of efforts. Because we are mindful of the privacy rights of individuals, we are working closely with New York State Attorney General Eliot Spitzer and the front line providers of support to victims: the Red Cross, Safe Horizon, the Salvation Army, and others.

[18] However, we do not think that victims' needs can or should wait for a database; our first priority is meeting emergency needs as soon as they arise. Even without a database, however, there is a remarkable amount of coordination taking place: Government agencies from the Federal, State and City governments work every day with the front line charities, such as the Red Cross, Safe Horizon and Salvation Army. They meet frequently to coordinate their programs and unplug bottlenecks. As an organization that helps fund these efforts, we are encouraging even greater coordination.

[19] One of our major tasks in developing a program is to understand the range of people and institutions affected by this tragedy and their needs. None would argue that the family of someone who died, or someone who was severely injured shouldn't receive aid, but most of our donors also recognize the needs of those who lost their jobs, who lost their homes, or who have been traumatized as a result of helping out at Ground Zero or the Pentagon. Others have pointed out that September 11th also destroyed the homes of hundreds of nonprofits and small businesses.

[20] Many of the needs of these victims can and will be provided for by others -- by government programs or special purpose charities. Nonetheless, a traditional role for philanthropy is to help those who "fall through the cracks". For example, what about the second families of victims who are not eligible for government aid? And elderly parents who are not technically dependents, but who were receiving help with rent or mortgage payments? Should we not make sure that all victims receive help?

[21] We must also recognize that some of these needs may not be apparent for quite some time. It may be months, sometimes even years, before a family realizes that they need counseling. As Dan Kurtenbach of the Resource Coordination Committee of Oklahoma City told us, "The majority of our work and our value to the community has been supporting long-term needs. You will not know what those needs are for at least a year." Given the magnitude of the shock that occurred on September 11th, we know that people will need help months and even years from now. We need to ensure that we provide adequate resources for these needs as they arise.

[22] We are beginning the work necessary to develop this long- term program. We have already established a Board of Directors, drawing from the United Way, the New York Community Trust, the entertainment industry and others from business and civic life. That Board is chaired by Franklin Thomas, former president of the Ford Foundation. We are hiring a small staff, and will continue to rely on the expertise of some of the best grantmakers in the country from the New York Community Trust, United Way, the Ford Foundation and others.

[23] Over the next weeks and months we will make critical decisions about funding priorities, analyze the needs of those who are affected by the September 11th tragedy, and seek to meet those needs that are not being met by others. We will do so, as always, by providing grants to organizations with the expertise and ability to do so, as quickly, efficiently, and fairly as possible.

[24] Since developing this program necessarily involves working with government agencies and other charities, and since some of these have not yet decided how they can and will help, the process will take some time. This is another reason we consider it so important to meet the emergency needs immediately. Our emergency grants are helping do so.

PRESERVING CONTRIBUTIONS FOR HELPING VICTIMS

[25] Now, for my third and final point: Every penny contributed to The September 11th Fund will go to grants to help the victims of September 11th, their families and affected communities. None of our administrative costs come out of The Fund. Instead, several foundations contributed funds specifically for this purpose.

[26] The September 11th Fund is, by design, a lean organization that relies heavily on resources donated by The United Way of New York City, the New York Community Trust, and others. The September 11th Fund currently operates with a (tireless) staff of four. Thanks to the experts at the NY Community Trust, the United Way of New York City and others who are donating their time and expertise, grants that normally would take 4-6 months for approvals are being researched and awarded much more quickly, sometimes within one week. This is only possible because these staff members have years of experience in the nonprofit community, specifically funding emergency assistance and community needs.

[27] Our distinguished board chairman, Franklin Thomas, and our board of directors, made up of leaders from the philanthropic, business and social service communities, are contributing their time, as well as resources from their institutions.

[28] We are proud of the work that we have done to date, and are working energetically with others to develop a fair and effective response to the September 11th tragedies. We know that it is important that our program be accountable, both to the public and the millions of donors who have put their trust in us. We invite the committee and the public to follow the decisions we make and the results that they generate through our web site, www.september11fund.org, where we post information regularly.

[29] In summary, the September 11th Fund is focusing on the needs of the victims, their families and the affected communities by providing funds to experienced front-line agencies for emergency needs. We will continue to support coordination efforts, and are working hard with others to develop programs for long-term needs that are effective, fair and leave no one behind.

ABOUT THE SEPTEMBER 11TH FUND, THE NEW YORK COMMUNITY TRUST AND THE UNITED WAY OF NEW YORK CITY

[30] THE SEPTEMBER 11TH FUND, based in New York City, was established by The United Way of New York City and the New York Community Trust to help meet the immediate and longer-term needs of victims, their families, and communities affected by the terrorist attacks of September 11th.

[31] THE NEW YORK COMMUNITY TRUST is the largest community foundation in the country, with assets of approximately $2 billion and more than 1,500 separate funds under management, some of which are donor-advised funds held by members of the New York City government and the United States Congress. Founded in 1924, its mission is unchanged: excellence in charitable giving. Thousands of grants are made by the Trust each year. In the year 2000, $145 million was disbursed, 70% in the New York metropolitan area.

[32] THE UNITED WAY OF NYC is a volunteer-led organization dedicated to helping New York's most vulnerable citizens become and remain self-sufficient. UWNYC funds a network of the most effective health and human service nonprofits in the five boroughs; mobilizes collaborative efforts to address our community's most pressing needs and to help nonprofits achieve maximum impact.