Private US Aid Pours in to Help Cope with Katrina
USA: August 2, 2005


WASHINGTON - Aid agencies tallied more than $90 million in private donations on Thursday as relief efforts cranked up to cope with the widespread devastation, hunger and despair caused by Hurricane Katrina.

 


"We have never seen an outpouring of support like this in our existence," said Phil Zepeda, spokesman for hunger relief group America's Second Harvest. "It's just tremendous, and the outpouring of support just continues to come."

The American Red Cross alone has received donations of $71.6 million since the storm struck on Monday, with an unprecedented 100,000 phone calls to its emergency hotline a day later, said spokeswoman Deborah Daley.

The donations compare to a little more than the $130 million total the American Red Cross received for last year's four hurricane hits on the southeast United States.

"Unfortunately we know the needs to deal with Katrina will exceed the $130 million needed to deal with the four hurricanes," Daley said.

Salvation Army spokeswoman Theresa Whitfield said donations had now jumped to $15.5 million from $4 million on Wednesday.

The Internal Revenue Service issued a statement reminding Americans about tax benefits for charitable donations, and pointed donors to a federal list of tax-exempt groups.

Concerns that big rises in oil and gasoline prices, which have soared to record highs, could curb the pace of spending have not yet borne fruit, several aid agencies said.

"We've seen exactly the opposite," said Joe Conway, a disaster relief spokesman for the Southern Baptist Convention.

Radio and television stations committed to raising at least $100 million for the victims, the National Association of Broadcasters said. It designated Sept. 9 as a day for stations to hold telethons and other fundraising events.

Pharmaceutical companies have donated $25 million in medicines, medical supplies and cash "and that number is growing by the hour," according to the Pharmaceutical Research and Manufacturers of America.

Schering-Plough Corp. said it contributed 100,000 units of Coppertone sunscreen in response to a request from the American Red Cross. And Canadian singer Celine Dion gave $1 million to the American Red Cross.


BUT ECONOMY COULD AFFECT GIVING

But analysts caution the economic impact of the storm -- which wiped out entire neighborhoods, knocked out power and communications in many areas, hit production at some oil refineries and triggered incidents of looting -- could still take its toll on relief donations.

"Giving is very directly tied to the economy. People's willingness to give as much as they possibly can is tied to whether they feel secure about their jobs and the fact that they are going to have to pay more in gas prices," said Stacy Palmer, editor of the Chronicle of Philanthropy newspaper.

The Chronicle has counted more than $93 million in donations since the disaster struck. This compares to $30 million raised by international aid organizations three days after the Asian tsunami last December, the paper said.

Logistics problems and fears about security continued to dog aid organizations, but they said they were working together with the Federal Emergency Management Agency which is coordinating relief efforts to protect staff, goods and needy Americans seeking help.

"The scale of this disaster is so big, that there is certainly going to be a lot of effort by the charities to call attention to long-term needs. So I would expect that giving will go in waves for quite a long period of time," Palmer said.

 


Story by Caroline Drees

 


REUTERS NEWS SERVICE