by Bill King
President, Minnesota Council on Foundations

This commentary appeared in the 9/15/02 edition of the Minneapolis Star Tribune.

Never before in our nation's history have so many philanthropic dollars been raised so quickly from so many people for a single purpose. The one-year anniversary seems an appropriate time for us to step back and assess what we have learned, both good and cautionary, from our country's historic charitable response to an unthinkable event.

• Foundations and corporations can act quickly. One strength of private foundations is their ability to be innovative and independent, free to respond quickly when government funding often can't.

Within a few hours of the terrorist attacks -- when most of us were struggling to comprehend the enormity of the events unraveling before our eyes -- the New York Community Trust, a community foundation in New York City, established the September 11th Fund to receive donations for relief and recovery efforts.

Foundations and corporations contributed more than $855 million to Sept. 11 causes, according to the Foundation Center in New York City, with a large portion of these donations coming in the first few weeks after the attacks.

Such efforts show the philanthropic sector's vital role in helping our nation in times of need.

• Never underestimate the capacity of people to give. When faced with the horrific events of Sept. 11, the first response of countless people in the United States and around the world was to give their time and money.

In the days after Sept. 11, I was humbled by the stream of phone calls and e-mails to my office from people asking one thing: "How can I help?"

People reacted in innovative and unselfish ways to the attacks, donating over the Internet at 10 times the previous average, creating workplace fund-raising drives literally overnight, and so much more.

In 2001, individuals contributed $1.25 billion to Sept. 11 causes, according to the annual Giving USA report. Within the first four months of the attacks, the September 11th Fund alone received contributions from nearly 2 million people in all 50 states and more than 150 countries.

• Giving money to people in need is not easy. As we saw after Sept. 11, it takes time to identify needs, determine criteria for deciding who has those needs, and establish a fair and equitable process for distributing funds.

Nonprofits responsible for distributing Sept. 11 funds have faced a monumental task, while being criticized by some for moving too slowly and by others for moving too quickly. Some mistakes have been made, but overall, nonprofits providing Sept. 11 aid have acted laudably and deserve our gratitude.

Americans seem to agree. A recent survey by Independent Sector, a national nonprofit and philanthropy association, found that more than 70 percent of Americans expressed their continued support for charities responding to the Sept. 11 terrorist attacks.

• Donors should ensure that they are fully informed on the organization receiving their donations, even in times of emergency. Sad to say, a few unscrupulous organizations tried to take advantage of people's generosity and grief to solicit donations under the guise of Sept. 11, when in fact little if any of the money they raised actually went for Sept. 11 relief and recovery. If you are not familiar with an organization soliciting donations from you, look up its IRS information at guidestar.com.

• Donors must have realistic expectations about how their funds will be used. Much public attention was devoted to some donors' disappointment that a portion of their Sept. 11 donations helped cover "overhead" expenses rather than direct assistance.

But no nonprofit can operate effectively without general operating expenses for such necessities as paying the electric bill and keeping the fax machine running. Unless these expenses are subsidized by another source, it is impossible for a nonprofit to promise that 100 percent of a donation will go directly for service.

A reasonable threshold for nonprofit administrative and fund-raising expenses is 30 percent, according to the Charities Review Council's accountability standards.

• Nonprofits must provide a full, accurate disclosure about how contributions will be used. A recent report by the Better Business Bureau's Wise Giving Alliance, a national charity watchdog group, concluded that American Red Cross solicitations for donations in the wake of Sept. 11 were misleading to the public.

Solicitations for the charity's Liberty Fund omitted the fact that the Red Cross planned to use some of the money for broader relief efforts unrelated directly to Sept. 11 aid, including a blood reserve and telecommunications upgrades, the report said.

The report also praised the Red Cross for taking steps to correct these issues. The nonprofit announced in June that it no longer would raise money for a specific disaster, but instead would communicate clearly to donors that their contributions would be used for many purposes over time. Other nonprofits can learn from this example.

• Companies should be open and upfront when linking marketing and philanthropy. The overall corporate charitable response to Sept. 11 included relatively few overt marketing or public relations tie-ins, offering a good example of how companies can give to charity without letting marketing interests interfere.

However, a few isolated businesses tried to sell Sept. 11-related merchandise with vague claims about "a portion of sale proceeds" going to Sept. 11 causes, when little or no money actually went there. Consumers should be wary of such claims and get more information before purchasing. And companies should communicate clearly and in detail about how purchases will benefit charity.

Perhaps the greatest lesson on giving from Sept. 11 is that in times of need, Americans will respond. That is why I have every confidence that people will continue to give what they can to support the vital, day-to-day work of Minnesota's nonprofits.

In the current economic downturn, many nonprofits are experiencing dwindling financial resources at the same time that demand is growing for their services in health care, housing, emergency assistance and more. I encourage all of us to continue the spirit of giving we have shown in the year after Sept. 11.

© Copyright 2002 Minnesota Council on Foundations
Reproduction in any form without the written permission of the publisher is prohibited.