Hurricanes Katrina and Rita: Provision of Charitable Assistance
Published: 2005-12-13T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: The devastation and dislocation of individuals experienced throughout the Gulf Coast in Louisiana, Mississippi, Alabama, and Texas in the wake of Hurricanes Katrina and Rita has raised concern about both the charitable sector's and the government's abilities to effectively respond to such disasters. To strengthen future disaster response and recovery operations, the government needs to understand what went right and what went wrong, and to apply these lessons. The National Response Plan outlines the roles of federal agencies and charities in response to national disasters. Recognizing the historically large role of charities in responding to disasters, the plan included charities as signatories and gave them considerable responsibilities. In addition to carrying out the responsibilities outlined in the National Response Plan, charities served as partners to the federal government in providing both immediate and long-term assistance following Hurricanes Katrina and Rita. GAO was asked to provide an overview of lessons learned from charities' response to previous disasters as well as preliminary observations about the role of charities following the Gulf Coast hurricanes. As part of our ongoing work, GAO will continue to analyze federal and charitable efforts following the hurricanes.
section_title: What GAO Found
paragraphs: Following September 11, 2001, GAO reported lessons learned that could help charities enhance their response to future disasters. These included easing access to aid for eligible individuals, enhancing coordination among charities and between charities and the Federal Emergency Management Agency (FEMA), increasing attention to public education, and planning for future events. GAO also recommended that FEMA convene a working group of charities to coordinate lessons learned following September 11. Following the GAO report, seven disaster response charities partnering with FEMA formed the Coordinated Assistance Network to improve collaboration and facilitate data sharing. Following the Gulf Coast hurricanes, charities raised more than $2.5 billion dollars, according to Indiana University's Center of Philanthropy, with more than half of these funds going to the American Red Cross. GAO's preliminary work shows that these charities have taken steps to improve coordination of relief efforts by sharing information through daily conference calls and electronic databases. Despite these efforts, charities faced some challenges in coordinating service delivery. For example, some charities reported that their volunteers needed additional training to use the databases. GAO teams that visited the Gulf Coast region in October 2005 observed that in areas where the American Red Cross did not provide services, the Salvation Army and smaller organizations--often local churches--were able to meet many of the charitable needs of hard-to-reach communities. The American Red Cross's efforts to protect service providers may have prohibited it from operating in some of the harder-to-reach areas. Additionally, some concerns were raised about smaller charities' abilities to provide adequate disaster relief services.

section_title: Letter
paragraphs: I am pleased to be here today to discuss the role of charitable services in  response to recent Gulf Coast hurricanes. Hurricanes Katrina and Rita  caused massive destruction and large-scale disruption of lives in Alabama,  Louisiana, Mississippi, and Texas. In response to this destruction, we have  witnessed heroic efforts by public, private, and nonprofit organizations  and volunteers. My testimony today will present some of our observations  regarding the performance of charities in response to these hurricanes.  These natural disasters have placed strengthening the nation’s emergency  response efforts at the top of the national agenda. Comptroller General  Walker has stated that GAO will provide support to Congress through  analysis and evaluation of coordination efforts among federal agencies,  and between federal agencies and the state, local, private, and nonprofit  sectors. GAO has conducted several previous reviews of federal actions  following national disasters, including Hurricane Andrew in 1992 and the  terrorist attacks of September 11, 2001, that will be helpful in evaluating  the nation’s response to recent hurricanes. We plan to conduct all Katrina- related work under the Comptroller General’s authority since it is an issue  of interest to the entire Congress and numerous committees in both  houses.
Charities have addressed many short- and long-term needs of the victims  of recent hurricanes in the Gulf Coast region. Their efforts represent the  largest disaster response effort in United States history by charitable  organizations. As charities collect donations to address these needs,  questions have been raised about how the money will be used and how  charitable relief efforts will be coordinated. This testimony will discuss  progress to date in incorporating lessons learned from our review of  charitable coordination following September 11, and preliminary  observations about the coordination of charities after the recent  hurricanes. This testimony is based upon published GAO reports; ongoing  work; relevant interviews with federal, state, and local government  officials in states affected by the hurricanes; interviews with charitable  officials and national experts; and data on total hurricane-related  donations to charities from Indiana University’s Center on Philanthropy.
In summary, we learned from our work following the September 11  attacks that charities could take steps to make it easier for survivors of  disasters to get the help they need, improve coordination among charities  and the Federal Emergency Management Agency (FEMA), better educate  the public about charities’ roles in disaster recovery, and plan for  responding to future disasters. Following our report, seven charities  formed a network to share information electronically about aid recipients  and services provided, improve coordination, and ease access to aid. The  group worked in partnership with FEMA to develop a database to share  information between agencies. In a little more than 3 months, charities  have raised more than $2.5 billion to assist in hurricane relief and recovery  efforts. In addition, charities have taken other steps to improve  coordination following the Gulf Coast hurricanes. Charities shared  information through meetings at the American Red Cross headquarters,  daily conference calls, and electronic databases that allowed multiple  organizations to access information about services provided to hurricane  victims. Despite these efforts, some charities raised concerns about the  usefulness of the conference calls and electronic databases for sharing  information. For example, some charities said that daily conference calls  after Katrina included too many organizations and did not provide the  information they needed. There were also problems with providing  charitable services to victims in some hard-to-reach areas. GAO teams in  the field reported that the American Red Cross did not provide relief in  certain areas because of safety policies. In areas where the American Red  Cross did not operate, GAO teams observed that other charities, such as  the Salvation Army and smaller charities—often local churches—provided  relief services. Although smaller organizations provided needed charitable  services in the Gulf Coast region, some concerns have been raised about  their ability to provide adequate services to victims. We will be reviewing  this issue in more detail over the next several months. GAO is currently  engaged in ongoing work on the coordination of charitable efforts in  response to Hurricanes Katrina and Rita and will further examine how  effectively charities coordinated their responses to recent hurricanes.
subsections: section_title: Background
paragraphs: Charities are organizations established to serve broad public purposes,  such as the needs of the poor or distressed and other social welfare issues.  The Internal Revenue Service reported that for 2002, 501(c)(3)  organizations, which include charities, had total assets of over $1.7 trillion.  In 2004, the Internal Revenue Service (IRS) recognized 820,000 charities,  accounting for about 90 percent of 501(c)(3) organizations. Charities can  include organizations with missions such as helping the poor, advancing  religion, educating the public, or providing disaster relief services.  Although the federal government indirectly subsidizes charities through  their tax-exempt status and by allowing individuals to deduct charitable  contributions from their income taxes, the federal government has a fairly  limited role in monitoring charities. States provide the primary oversight  of charities through their attorneys general and charity offices.
subsections: section_title: Charities’ Response to National Disasters
paragraphs: Charities have historically played a large role in the nation’s response to  disasters. For example, after the September 11 attacks, 35 of the nation’s  larger charities—including the American Red Cross and the Salvation  Army—collected almost $2.7 billion to provide food, shelter, mental health  services, and other types of aid.
Charities’ roles in responding to disasters can vary. Some charities,  including the American Red Cross and the Salvation Army, are equipped to  arrive at a disaster scene and provide immediate mass care, including  food, shelter, and clothing, and in some circumstances, emergency  financial assistance to affected persons. Other charities focus on providing  longer-term assistance, such as job training, scholarships, or mental health  counseling. In addition, new charities may form after disasters to address  specific needs, such as the charities established after the September 11  attacks to serve survivors of restaurant workers and firefighters.
section_title: National Response Plan
paragraphs: The U.S. government’s National Response Plan provides a single,  comprehensive framework for the federal response to domestic incidents,  such as natural disasters and terrorist attacks. The plan provides the  structure and mechanisms for the coordination of federal support to states  and localities. Major cabinet and other federal agencies are signatories to  the plan, along with the American Red Cross and the National Voluntary  Organizations Active in Disaster (National VOAD), a national charity  umbrella organization. The American Red Cross and National VOAD are  the only nongovernmental organizations that signed the Plan. In December  2004, the Department of Homeland Security released the plan, which was  developed at the request of President Bush. The plan incorporates and  replaces several previous plans for disaster management, including the  Federal Response Plan, which was originally signed in 1992. One of the  ways the plan changed the Federal Response Plan was by not naming  charities active in disaster relief other than the American Red Cross, but  instead incorporating them under the umbrella organization, National  VOAD.
The plan designates 15 Emergency Support Functions, each identifying a  specific disaster response need as well as organizations that have key  roles in helping meet those needs. The sixth Emergency Support Function,  the function most relevant to charities involved in disaster relief, creates a  working group of key federal agencies and charitable organizations to  address    mass care, including sheltering, feeding, and emergency first aid;    housing, both short- and long-term; and    human services, such as counseling, processing of benefits, and  identifying support for persons with special needs.
As a direct service provider, the American Red Cross feeds and shelters  victims of disasters. In addition to fulfilling this role, the American Red  Cross is responsible for coordinating federal efforts to address mass care,  housing, and human services under Emergency Support Function 6 with  FEMA. The American Red Cross is the only charity to serve as a primary  agency under any Emergency Support Function. The plan gives the  American Red Cross responsibility for coordinating federal mass care  assistance in support of state and local efforts. The American Red Cross  also has responsibilities under other Emergency Support Functions, such  as providing counseling services and working with the federal government  to distribute ice and water. FEMA’s responsibilities include convening  regular meetings with key agencies and coordinating the transition of  service delivery from mass care operations to long-term recovery  activities, among other responsibilities.
National VOAD, a membership organization composed of approximately  40 charities that provide services following disasters, is designated as a  support agency under Emergency Support Function 6, but it does not  provide direct services to victims. Rather, National VOAD is responsible  for sharing information with its member organizations regarding the  severity of the disaster, needs identified, and actions taken to address  these needs.
section_title: Following September 11, GAO Reported That More Effective Collaboration Could Enhance Charities’ Contributions in Disasters
paragraphs: Following September 11, GAO reported several lessons learned that could  help charities enhance their response to future disasters. These included  easing access to aid for eligible individuals, enhancing coordination among  charities and between charities and FEMA, increasing attention to public  education, and planning for future events. Further, GAO recommended  that FEMA convene a working group to encourage charities involved in  disaster response to integrate these lessons learned from the September 11  attacks. Following our report, seven of the largest disaster response  charities, in partnership with FEMA, formed the Coordinated Assistance  Network (CAN) to ease collaboration and facilitate data sharing. While the  network databases are still largely in a pilot phase, both government and  charity representatives have praised the potential of the network’s  databases to improve collaboration.
subsections: section_title: Lessons Learned from September 11 Could Improve Charities’ Response to Future Disasters
paragraphs: Easing access to aid for those eligible: We reported that charities  could help survivors find out what assistance is available and ease their  access to that aid through a central, easy-to-access clearinghouse of  public and private assistance. We also suggested offering eligible  survivors a case manager, as was done in New York City and in  Washington, D.C., following September 11 to help to identify gaps in  service and provide assistance over the long term.
Enhancing coordination among charities and with FEMA: We also  found that private and public agencies could improve service delivery  by coordinating, collaborating, sharing information with each other,  and understanding each other’s roles and responsibilities. Collaborative  working relationships are critical to the success of other strategies to  ease access to aid or identify service gaps, such as creating a  streamlined application process or a database of families of those  killed and injured.
Increasing attention to public education: After September 11, we  reported that charities could better educate the public about the  disaster recovery services they provide and ensure accountability by  more fully informing the public about how they are using donations.  Charities could improve transparency by taking steps when collecting  funds to more clearly specify the purposes of the funds raised, the  different categories of people they plan to assist, the services they plan  to provide, and how long the charity plans to provide assistance.
Planning for future events: Further, we reported that planning for  how charities will respond to future disasters could aid the recovery  process for individuals and communities. Although each disaster  situation is unique, it could be useful for charities to develop an  assistance plan to inform the public and guide the charities’ fundraising  efforts. In addition, state and local emergency preparedness efforts  could explicitly address the role of charities and charitable aid in future  events.
section_title: Charities Formed National Network to Improve Coordination
paragraphs: GAO recommended that FEMA convene a working group to encourage  charities involved in disaster response to integrate lessons learned from  the September 11 attacks. After our report, FEMA encouraged charities to  form a working group to share information following disasters, which  became the Coordinated Assistance Network. The seven charities that  formed CAN are the Alliance of Information and Referral Services, the  American Red Cross, National VOAD, the Salvation Army, 9/11 United  Services Group, Safe Horizon, and the United Way of America. The group  worked in partnership with FEMA to develop a database to share  information between agencies.
The CAN network addressed several of the lessons learned that GAO  identified. To ease access to aid for those eligible, the network is designed  to share client data, such as previous addresses, employment information,  and FEMA identification numbers, between charities. CAN is intended to  ensure that victims need only explain their circumstances once, rather  than repeatedly to different service providers. To enhance coordination  among charities and with FEMA, the CAN network is designed to make  charities more aware of the services provided by one another and identify  any gaps or redundancies in services. Last, to plan for future events, the  CAN network intends to build partnerships or working relationships  among disaster response charities before disasters strike. While the CAN  network databases are still largely in pilot phase, both government and  charity representatives have praised the database’s potential to improve  collaboration and noted that it functioned well following the disasters,  considering that it was not fully developed.
section_title: Preliminary Observations of Charitable Organizations’ Operations Following the Gulf Coast Hurricanes
paragraphs: Following the hurricanes, charities have raised more than $2.5 billion to  assist in hurricane relief and recovery efforts. Many of the charities  responding to the disaster have taken steps to coordinate with one another  and with FEMA and other government agencies. For example, charities  have shared information through daily conference calls and through  electronic databases that allowed multiple organizations to access  information about services provided to hurricane victims. Some charity  representatives we spoke with praised the potential of these systems for  sharing information, but also raised concerns that using these systems  could be difficult at times. Charities also experienced problems in  providing services to victims in some hard-to-reach areas. GAO teams that  visited the Gulf Coast region in October 2005 observed that in areas where  the American Red Cross did not operate, other charities, such as the  Salvation Army and smaller charities—often local churches—provided  relief services. Although smaller organizations helped fill the gaps in  charitable services in the Gulf Coast region, some concerns have been  raised about their ability to provide adequate services to victims.
subsections: section_title: Charities Have Raised More than $2.5 Billion Following the Gulf Coast Hurricanes
paragraphs: Charities have raised more than $2.5 billion in cash donations in response  to the Gulf Coast hurricanes, according to the Center on Philanthropy at  Indiana University. The center notes that this number is a low estimate,  since it does not include direct giving to individuals, giving to smaller  charities, or in-kind donations. As of November 18, the American Red  Cross had raised more than $1.5 billion, more than half of all dollars  raised. The Salvation Army raised the second-highest amount, $270  million, about 18 percent of the amount raised by the American Red Cross.  The Bush-Clinton Katrina Fund and Catholic Charities were the next- largest fund raisers, each raising about $100 million.
section_title: Charities Took Steps to Improve Coordination but Experienced Some Challenges
paragraphs: Charities operating in the Gulf Coast region following the hurricanes  coordinated services through the convening of major national disaster  relief organizations at the American Red Cross headquarters, daily  conference calls organized by National VOAD, and databases established  by CAN. The usefulness of the daily conference calls, as well as the CAN  databases, was questioned by some charity representatives.
In the weeks following Hurricane Katrina, the American Red Cross  organized a national operations center with representatives from FEMA  and several major national charities, including the Southern Baptist  Convention and the Salvation Army, at its headquarters in Washington,  D.C. Because of the scale of the hurricane disaster and the large response  needed, this was the first time the American Red Cross coordinated this  type of national operations center following a disaster. This working group  helped the major charities coordinate services on the ground by allowing  for face-to-face interaction and ongoing communication, according to  charity representatives and FEMA officials.
To help fulfill its information-sharing role under Emergency Support  Function 6, National VOAD organized daily conference calls with FEMA  and other federal government representatives and its member  organizations operating in the Gulf Coast region. National VOAD also  invited nonmember charitable organizations that were providing relief to  hurricane victims to participate in these calls, which sometimes included  more than 40 organizations at once. During these calls, both the federal  government and charities were able to provide information and answer  questions about services provided, needs identified, and the organizations’  abilities to meet these needs. Representatives from charitable  organizations told us that these calls were an effective way to coordinate  the delivery of supplies among charities and help identify those regions  that were most in need of charitable services.
Charities were also able to share information through CAN databases.  Following the hurricane disasters, CAN created a Web-based shelter  registry that provided information about emergency shelters operating in  the Gulf Coast region, including their capacity and operating status. CAN  also activated the database of victim information, which at the time was  being tested in six pilot communities. More than 40 charities–all of whom  must sign CAN participation agreements, including the American Red  Cross, the Salvation Army, and the United Way of America–were able to  access this database and input information about the services they  provided to individual clients, according to CAN representatives. Charities  could share information about these clients, who were required to sign  privacy releases, through the Web-based database, thus reducing service  duplication and the need for victims to give the same information to  multiple organizations.
Although charity representatives we interviewed reinforced the  importance of the conference calls and the CAN databases, they also  raised concerns about the usefulness of these systems. For example, some  representatives were concerned the conference calls had too many  participants. Because 40 or more charities might be participating in any  one call, the calls often ran long or dealt with issues that may not have  been of interest to the whole group, according to some charity officials.  Additionally, charity representatives told us that call participants  sometimes provided information that turned out to be inaccurate.
Charity officials we spoke with were supportive of CAN and its mission,  but they raised several concerns about the usefulness of its databases  following the hurricane disasters. One concern that we heard from a few  charities was that the CAN case management system is still in its  developmental stages and was therefore not ready to be activated on such  a large scale. Many volunteers had not received sufficient training on the  system, and some of the technological glitches had not been completely  resolved, according to charity representatives. In addition, representatives  told us that the shelter database, which was developed soon after the  hurricanes and had not been previously tested, may not have been ready  for widespread use. In addition, some officials said that after Katrina there  was neither electricity nor Internet access in certain locations, and as a  result, the CAN databases could not always be used. Some officials stated  that they needed to collect information in writing at the time of the  disaster and then input the data into the system once they had Internet  access–a task that was time-consuming and diverted resources from other  needed areas. CAN officials responded that the CAN databases were  created primarily for long-term recovery efforts, which would take place  after electricity and Internet access were restored, rather than for short- term relief.
Charity representatives also told us that daily conference calls and  electronic databases helped with coordination efforts, but these systems  were not as important to coordination efforts as pre-existing relationships.  Several of the charities we spoke with stated that in order for charities to  function efficiently following a disaster, they must have some sort of  established working relationship with the other charities involved in  disaster relief efforts. One charity representative told us that it is difficult  to make introductions in the chaos of a disaster. He stressed that charities  that operate in disasters should have memorandums of understanding  signed before a disaster strikes–a practice used by many charities–so that  they can immediately coordinate efforts in a disaster situation.
section_title: Charities Struggled to Balance Access to Services with Concerns Regarding Safety of Service Providers and Victims
paragraphs: GAO teams that visited the Gulf Coast in October 2005 observed that the  American Red Cross did not provide relief in certain areas because of  safety policies; and thus, other charities, such as the Salvation Army and  smaller charities, often helped to meet the needs of those areas. The  American Red Cross told us that with the American Society for Civil  Engineers and FEMA, it had previously developed policies intended to  protect the safety of service providers and victims following a disaster.  These policies include not establishing shelters in areas that may become  flooded during a disaster or in structures that strong winds may  compromise. However, victims remained in areas where the American Red  Cross would not establish shelters. Further, where the American Red  Cross was able to establish shelters, the needs of victims sometimes  exceeded the capacity of the American Red Cross, as this represented the  largest response effort in American Red Cross history. GAO teams in  Mississippi observed that the Salvation Army and smaller charities, such  as local church organizations, filled many of the needs for volunteer  services that the American Red Cross did not meet. Additionally, GAO  teams estimated that in the Birmingham, Alabama, area, a significant  portion of the approximately 7,000 evacuees were being cared for and  sometimes being housed by local churches and their members.
Although smaller organizations provided needed charitable services in the  Gulf Coast region, some concerns have been raised about the  organizations’ abilities to provide adequate services to victims. Some  officials told us that the smaller organizations helped meet important  needs, but many of the organizations had never operated in a disaster  situation and may not have completely understood the situation. For  example, officials told us that some of the small charities that placed  children who were separated from their parents in homes did not retain  sufficient information about which children were placed where. This made  it difficult to locate missing children. Other officials told us that some of  the smaller organizations that tried to establish “tent cities” to house  evacuees were not prepared to provide the water, sanitation, and  electricity these types of shelters require.
In closing, the devastation of Hurricanes Katrina and Rita once again  challenged federal, state, and local governments and charitable  organizations’ abilities to provide large-scale aid to hundreds of thousands  of survivors. It also provided a critical opportunity to assess how the  nation’s charities have incorporated lessons learned from responding to  the September 11 tragedy.
Our report on charitable organizations’ contributions after September 11  identified several lessons learned and made important recommendations  for improving the delivery of charitable services after disasters. GAO’s  ongoing work on the coordination of charitable efforts in response to  Hurricanes Katrina and Rita will examine how these recommendations  have been implemented and how effectively charities coordinated in  response to recent hurricanes. Specifically, this upcoming report will  address questions regarding the amount of money charities have raised to  assist people affected by the hurricanes and how these funds have been  used, how well charities are meeting their responsibilities under the  National Response Plan, how well charities are coordinating their relief  efforts, how people affected by the hurricanes have accessed charitable  services and relief supplies and the challenges they encountered in dealing  with charities, and what charities are doing to guard against fraud and  abuse. This report will be released next year.
Mr. Chairman, this concludes my statement. I would be pleased to respond  to any questions that you or other members of the subcommittee may have  at this time.
section_title: GAO Contact
paragraphs: Cindy Fagnoni (202)512-7215, fagnonic@gao.gov.
section_title: Staff Acknowledgments
paragraphs: Individuals making key contributions to this testimony included Andrew  Sherrill, Tamara Fucile, Mallory Barg Bulman, Scott Spicer, Rachael  Valliere, Walter Vance, Richard Burkard, Bill Jenkins, and Norm Rabkin.
section_title: Appendix I
paragraphs: This is a work of the U.S. government and is not subject to copyright protection in the  United States. It may be reproduced and distributed in its entirety without further  permission from GAO. However, because this work may contain copyrighted images or  other material, permission from the copyright holder may be necessary if you wish to  reproduce this material separately.