Order Code RL31716
Report for Congress
Received through the CRS Web
Homeland Security: 9/11 Victim Relief Funds
Updated March 27, 2003
M. Ann Wolfe
Senior Research Assistant
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

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Homeland Security: 9/11 Victim Relief Funds
Summary
In the first days following the terrorist attacks of September 11, 2001, an
unprecedented number of Americans contributed over $2.2 billion (some estimates
run as high as $2.7 billion) in donations to assist in the relief of victims. (Two
hijacked planes crashed into the World Trade Center, a third into the Pentagon, and
a fourth went down in Shanksville, Pennsylvania.) According to the New York State
Attorney General’s office, over 250 new charitable funds were created in the weeks
following the 9/11 crisis.
The federal government responded to the attacks in various ways. In the first
week after the disaster, Congress passed the 2001 Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks on the
United States (P.L. 107-38), part of which provided at least $20 billion for disaster
recovery in New York, Virginia and Pennsylvania. Then 12 days after the attack the
September 11th Victim Compensation Fund of 2001 (P.L. 107-42) became law. This
$6 billion program is intended to compensate any individual (or the personal
representative of a deceased individual) who was physically injured or killed as a
result of the attack. Nearly 3,000 victim families are expected to apply for
compensation. Attorney General Ashcroft appointed a Special Master who is
presently in the process of distributing the fund. Congress also passed, and the
President signed into law, the Victims of Terrorism Tax Relief Act of 2001 (P.L.107-
134). Among other things, this law states that victims will not be subject to federal
income taxes for the year in which they died and also for the previous year. This law
also exempts from gross income, amounts received from the Victim Compensation
Fund.
In response to the terrorist attacks, the American public donated unprecedented
amounts of money to charities nationwide. Questions were raised about where the
money was going and whether the victims and their families had access to the
donated money in a timely manner. To help assure victims and donors that the
money was getting to the intended beneficiaries promptly, hearings were held in the
U.S. House of Representatives on November 6 and 8, 2001. New York Attorney
General Eliot Spitzer testified, as did representatives of the Better Business Bureau
Wise Giving Alliance, among others. The American Red Cross was particularly
questioned because of concern that part of the $1 billion raised would be held in
reserve rather then spent on the 9/11 victims as was expected by the people who
donated the money. Subsequently, Red Cross officials declared that all the funds
raised for the Liberty Disaster Relief Fund would be distributed to 9/11 victims.
This report also discusses the amounts of money collected and distributed by
some of the larger victim relief funds such as the New York State’s World Trade
Center Relief Fund Distribution, the Twin Towers Fund (established by Rudolph
Giuliani, the former mayor of New York City), the Red Cross Liberty Disaster Relief
Fund, September 11th Fund (organized by United Way), Safe Horizons, the Families
of Freedom Scholarship Fund and several Firefighters and Police Relief Funds.
This report will be updated periodically as more information is available.

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Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Federal Response to 9/11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The 2001 Emergency Supplemental Appropriations Act for Recovery
from and Response to Terrorist Attacks on the United States . . . . 1
September 11th Victim Compensation Fund of 2001 . . . . . . . . . . . . . . . 1
Victims of Terrorism Tax Relief Act of 2001 . . . . . . . . . . . . . . . . . . . . 3
Existing Federal Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Victims of Crime Act of 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Federal Emergency Management Agency (FEMA) . . . . . . . . . . . . . . . . 4
Private Response to 9/11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Congressional Oversight Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Status of Selected Victim Relief Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
New York State’s World Trade Center Relief Fund Distribution . . . . . . . . 10
Twin Towers Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Liberty Disaster Relief Fund (Red Cross) . . . . . . . . . . . . . . . . . . . . . . . . . . 10
September 11 Fund (United Way) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
International Association of Fire Fighters – New York Firefighters
9-11 Disaster Relief Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Safe Horizons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Families of Freedom Scholarship Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Uniformed Firefighters Association Widows and Children’s Fund . . . . . . 13
The New York Police & Fire Widows’ & Children’s Benefit Fund . . . . . . 13
List of Tables
Table 1. General Award Statistics for Victim Compensation Fund . . . . . . . . . . . 2
Table 2. Range of Award Values for Claims Relating to Deceased Victims . . . . 3

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Homeland Security:
9/11 Victim Relief Funds
Background
In the first days following the terrorist attacks of September 11, 2001, both the
federal government and the private sector responded in dramatic ways. The 2001
Emergency Supplemental Appropriations Act for Recovery from and Response to
Terrorist Attacks on the United States (P.L. 107-38) was signed into law 7 days after
the attack. It provided at least $20 billion for disaster recovery activities and
assistance related to the terrorist acts in New York, Virginia, and Pennsylvania. The
September 11th Victim Compensation Fund of 2001 (a $6 billion program) was
signed into law (P.L. 107-42), just 12 days after the attack. In addition, an
unprecedented number of Americans donated over $2.2 billion (some estimates run
as high as $2.7 billion) to a wide variety of charitable organizations to help in the
relief of those affected. Some of the funds were managed by well-established
organizations with years of experience in administering charitable assets; also,
according to the New York State Attorney Generals’ office, over 250 new charitable
funds were created specifically to meet the 9/11 crisis.
Federal Response to 9/11
Legislation
The 2001 Emergency Supplemental Appropriations Act for
Recovery from and Response to Terrorist Attacks on the United States.1
Seven days after the attack this supplemental appropriations was passed for
emergency expenses to respond to the terrorist attacks by enhancing federal, state and
local preparedness for mitigating and responding to the attacks, providing support to
counter, investigate or prosecute domestic or international terrorism and generally
supporting national security in all its aspects. The law provided that not less than
one-half of the $40 billion available must be used for disaster recovery activities and
assistance related to the 9/11 terrorist acts in New York, Virginia and Pennsylvania.
September 11th Victim Compensation Fund of 2001.2 Just 12 days after
terrorists hijacked passenger planes and flew them into the World Trade Center and
1 P.L. 107-38.
2 P.L. 107-42 was amended by P.L. 107-71 and P.L. 107-296 and codified at 49 U.S.C.
§40101 note. See CRS Report RL31178, September 11th Victim Compensation Fund of
2001, by Henry Cohen.

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CRS-2
the Pentagon (a fourth plane crashed in Shanksville, Pennsylvania), the U.S.
Congress enacted the September 11th Victim Compensation Fund of 2001. This $6
billion program is intended to compensate any individual (or the personal
representative of a deceased individual) who was physically injured or killed as a
result of the terrorist attacks on September 11, 2001. Before receiving compensation,
Congress required that each claimant waive the right to file a civil lawsuit against
the airlines or other entities over their losses. However, fund claimants may sue to
recover collateral source obligations, e.g., money owed by insurance companies, and
they may file a civil action against terrorists who may bear some responsibility for
injuries suffered in the attacks.
On November 26, 2001, Attorney General Ashcroft appointed Kenneth R.
Feinberg as Special Master to distribute the $6 billion fund. The Special Master
developed and promulgated regulations governing the administration of the fund.3
He established and is administering the fund. He is also responsible for
disseminating all public information concerning the fund. Congress mandated that
awards be offset by life insurance and other collateral source compensation. In the
regulations the Special Master defined ‘collateral sources’ as not including tax
benefits received from the federal government as a result of the Victims of
Terrorism Tax Relief Act, and stated that, in determining the amount of offsets for
pension funds, life insurance, and similar collateral sources, he would reduce the
amount of offsets to take account of self-contributions made or premiums paid by
the victim. The time period for seeking medical help was also extended from 24
hours to 72 hours after the event, with discretion to extend the time period even
further on a case-by-case basis for rescue personnel.
Nearly 3,000 victim families are expected to apply for compensation. Trial
Lawyers Care,4 a group of more than 1,500 attorneys, has volunteered to aid the
victims’ families free of charge. As of March 26, 2003, the general award statistics
are as follows.5
Table 1. General Award Statistics for Victim
Compensation Fund
Claims Submitted
1431
Number of Award Letters Issued
318
Number of Responses Received (21 day deadline to respond)
228
Number of Responses Accepting
185
Number of Responses Requesting Hearing
43
Average Deceased Victims Awards After Offsets
$1,463,936
Median Deceased Victims Award After Offsets
$1,242,516
3 67 Federal Register 11233 (2002) (to be codified at 28 CFR Part 104).
4 See [http://www.911lawhelp.org].
5 For the latest statistics see [http://www.usdoj.gov/victimcompensation/payments.html].

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Table 2. Range of Award Values for Claims Relating to
Deceased Victims
(Award Ranges Stated Are After Collateral Offsets)
Income level
Age
Range
$50,000 or less
35 or Under
$280,000 to $1.9 million
$50,000 or less
Over 35
$250,000 to $1.8 million
$50,000 to $100,000
35 or Under
$250,000 to $4.1 million
$50,000 to $100,000
Over 35
$250,000 to $3.0 million
$100,000 to $200,000
All Ages
$250,000 to $4.5 million
Over $200,000
All Ages
$250,000 to $5.7 million
Victims of Terrorism Tax Relief Act of 2001.6 On January 23, 2002, the
President signed into law the Victims of Terrorism Tax Relief Act of 2001. Among
other things, the law specifically exempts from gross income (for tax purposes)
amounts received as payments from the September 11 Victim Compensation Fund
(those who died from anthrax and victims of the Oklahoma City bombings are
included in these exemptions). The law states that, “victims will not be subject to
federal income taxes with respect to the taxable year in which they died (2001 or
1995) and also with respect to the previous year ... Certain death benefits paid by an
employer to a victim of terrorism are excluded from gross income ... Estate taxes are
reduced for terrorism victims (and for certain members of the Armed Forces) but they
are not eliminated...Disability payments made to injured terrorist victims are
excluded from gross income ....”7
Existing Federal Programs
Victims of Crime Act of 1984.8 The Victims of Crime Act of 1984
established the Crime Victims Fund (CVF) within the Department of Justice. The
CVF is managed by the Office of Victims of Crime (OVC).9 After 9/11 the
Terrorism and International Victims Unit (TIVU) was established to coordinate OVC
resources and funding for victims of terrorism. OVC makes Antiterrorism and
Emergency Assistance funding available to support five types of assistance in the
wake of an act of terrorism or mass violence as follows:
6 P.L. 107-134, codified at 26 U.S.C. 1 note.
7 Trial Lawyers Care [http://www.911lawhelp.org/info/news/VTRact.htm].
8 P.L. 98-473, codified at 42 U.S.C. 10601.
9 For more information on OVC, see CRS Report RL31295, Assistance for Victims of Crime
and Terrorism, by Alison Siskin.

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CRS-4
! Crisis Response Grants (available within 0-9 months). Help rebuild
adaptive capacities, decrease the sources of stress, and reduce
symptoms of trauma;
! Consequence Management Grants (available within 9-18 months).
Help victims to adapt and restore a sense of equilibrium;
! Criminal Justice Support Grants (available within 18-36 months).
Facilitates victims’ participation in investigations and prosecutions
related to terrorism;
! Crime Victim Compensation Grants. Reimburses victims for out-of-
pocket expenses related to terrorism. Funds cannot be used to cover
property damage or loss; and
! Training and Technical Assistance. Assist in identifying resources,
assessing needs, coordinating services and developing strategies for
responding to an act of terrorism.
OVC funding may support, among other things, the following activities: Crisis
counseling, needs assessments and planning, outreach plan development, emergency
transportation and travel, temporary housing assistance, emergency food and
clothing, victim information WEB sites, vocational rehabilitation and compensation
for medical and mental health costs, lost wages, and funeral expenses.
On April 23, 2002, the Justice Department announced that it had awarded a total
of $42 million to California, Massachusetts, New Jersey, New York, Pennsylvania
and Virginia to provide mental health counseling for victims of the September 11
terrorist attacks, their families and crisis responders who helped victims of the
attacks. These grants include funds to compensate victims for counseling services
and to support state and local programs that offer various forms of counseling. In the
Fall of 2001, OVC had also provided more than $15 million to provide immediate
support to New York, Pennsylvania and Virginia to help victims of the September
11 attack and their families.10
Federal Emergency Management Agency (FEMA). The Federal
Emergency Management Agency (FEMA) provides a range of assistance to victims
of major disasters or emergencies after the President issues a declaration.11 At the
time of the 9/11 attack, cash grants of up to $14,800 could have been provided to
victims deemed to be eligible for assistance from the Individual and Family Grant
(IFG) program authorized by the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, as amended.12 Because the 9/11 attack was considered a criminal act,
10 See [http://www.ojp.usdoj.gov/ovc].
11 For background on FEMA’s assistance and presidential declarations see: CRS Report
RL31359, Federal Emergency Management Agency Funding for Homeland Security and
Other Activities, by Keith Bea.
12 42 U.S.C. 5178 (repealed). The Disaster Mitigation Act of 2000 (P.L. 106-390) repealed
the authority for the IFG program and authorized a new program, Federal Assistance to
Individuals and Households (42 U.S.C. 5174) effective October 1, 2001. As the 9/11 attack
occurred prior to the effective date of the new provision, victims of the attack would have
been eligible for IFG assistance. Regulations for the new program are found at 67 FR
(continued...)

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CRS-5
however, benefits under the IFG program were not provided to victims as the
resources of the crime victims compensation funds were determined to be more
appropriate and beneficial.13
In addition, the Catalog of Federal Domestic Assistance Staff has identified
over forty federal programs that may be of special interest to those seeking assistance
in dealing with the events of 9/11. See http://www.cfda.gov/911.htm.
Private Response to 9/11
Some of the well established charities such as the United Way and the New
York Community Trust, the American Red Cross and the Robin Hood Foundation
of New York City (NYC) set up special funds for the victims. For example, the
September 11th Fund was set up by the United Way and raised up to $510 million; the
Liberty Disaster Relief Fund set up by the American Red Cross became the conduit
for $1 billion to aid those affected by the attacks; The Robin Hood Foundation set up
by the Robin Hood Relief Fund raised $59.6 million to benefit victims’ families, the
rescue workers, and others who have been affected by the economic consequences
of the attacks.
The New York Times used the framework of their 90-year-old Neediest Cases
Fund to launch a special 1-month drive for their 9/11 Neediest Fund. It was thought
that $4 million could be raised in that time span considering that the annual drive in
2000 had raised $8 million. Instead, more than $61 million was raised, with
donations pouring in long after the formal closing date of October 11, 2001. As of
September 2002, the fund had spent or committed 99% of the contributions.14
Money was distributed to 10 participating agencies such as Catholic Charities,
Community Services, Federation of Protestant Welfare Agencies, Fire Safety
Foundation and the New York City Police Foundation. Some $2.3 million of the
funds was used to create the New York Consortium for Effective Trauma Treatment,
when it was found that few clinicians were trained to treat such trauma. These funds
are being administered by the four hospital-based trauma treatment centers in the city.
The money is being used to train 60 clinicians to treat trauma, and to pay half their
salaries for a year so that they can train others. Roughly 10% of the 9/11 fund is
being devoted to mental health issues.
In their 12-month report following 9/11, the directors of the 9/11 Neediest Fund
attempted to summarize some of the lessons learned about how charities could set out
to help so many people in sudden distress. They said:
12 (...continued)
61445-61460.
13 Ms. Donna Dannels, Deputy Director, Response and Recovery Directorate, private
interview held with Keith Bea of CRS during briefing on the attack, September 2001.
14 See [http://www.nytco.com/company/foundation/neediest/index.html].

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CRS-6
Working in a wartime atmosphere of scarcity, pain and confusion, many 9/11
Neediest Fund grantees have devised creative ways to help people. These new
approaches could potentially change the usual ways that we help the needy. The
key is connection....connection among agencies and experts within the same
field, connection among different fields, connection between public and private
agencies and connection between donors and recipients. Scott Williams of
Project Renewal described this spirit of connection in a memorably practical
way. ‘What was really amazing was how well the numerous different social
service agencies worked together after 9/11 .... there was a new spirit of
cooperation among people who usually compete fiercely for public dollars, with
almost no territorialism. We partnered with agencies we usually fought with
over every aid dollar, and vice versa.’15
Religious affiliated organizations such as Catholic Charities USA, The
Salvation Army and the Federation of Protestant Welfare Agencies, increased and
adjusted their charitable activities in response to the emergency. Among these, the
Catholic Charities USA allocated more than $30.5 million to 25 local agencies
located in the New York metro area, New Jersey, Delaware, Pennsylvania, Virginia,
Maryland and Washington D.C. among others, in response to the immediate tragedy
and the emotional and economic aftermath of the attacks. They provided immediate
support when a family or individual fell through the cracks of the aid bureaucracy,
or had not met the criteria of other agencies, or had sought out a confidential
provider. And they report that they continue to support the long term needs of
families whose lives were affected by the tragedy.16
In August 2002, the Salvation Army reported that it had received nearly $88
million in donations for its September 11 relief work, and that to date, about $65
million had been spent on primary services including financial aid to victims’
families and others whose livelihoods were impacted. They estimate that the
remaining $23 million will be spent by the end of 2003, according to a 2-year
spending plan developed in late 2001. The Salvation Army reported that it had
assisted more than 121,000 people in the almost 1 year since the terrorist attacks,
providing grief and mental health counseling, financial assistance, and other basic
social services. Salvation Army officers, staff and 107,169 volunteers served almost
5 million meals to relief workers and victims at disaster sites in New York,
Washington and Pennsylvania. Now that the work at the sites has ended, the
Salvation Army reports that it continues to serve those in need through its corps
community centers in New York and elsewhere around the country.17
Many organizations, unaccustomed to raising and dispersing donated money,
created their own funds as an expression of their concern. The National Association
of Home Builders, an industry group with 205,000 members, had promised their
members that all of the money they collected would go to the victims of 9/11.
Originally, the Home Builders had planned to turn the money over to the Red Cross
15 Report 9/11NeediestFund, available online from the New York Times web site at
[http://www.nytco.com/company/foundation/neediest/lessons.html].
16 Catholic Charities USA [http://www.catholiccharitiesusa.org].
17 Salvation Army [http://www.salvationarmy-usaeast.org].

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CRS-7
for distribution. When confusion concerning the dispersal of Red Cross funds began
receiving adverse publicity, the builders decided to distribute the $10 million they
had collected. In the process, they discovered how difficult it is to define need and
to make certain the money was appropriately distributed. Eventually, after much
debate, the Home Builders committee decided that money would be funneled from
the national group to an executive of the New York State Builders Association, who
would then distribute it to local chapters in the New York area; the local chapters
would be responsible for aiding needy victims. Applications came in slowly until the
general counsel for Associated Builders and Owners of New York noticed a
newspaper article about restaurant, hotel and janitorial workers who had been laid off
from jobs either in or near the World Trade Center. Twenty-four hours after calling
one union named in the article, the association was bombarded with applications
describing foreclosure notices, overdue credit bills, and past-due phone bills. In the
end, according to the New York Times article, the Home Builders did bring a modest
amount of relief to hundreds of families by funneling much of their money toward
this overlooked group who had experienced real hardships following the disaster.18
For a summary of the activities of some of the largest charities involved in the
relief of victims of the 9/11 disaster, please refer to the “Status of Selected Victim
Relief Funds,” in this report.
In a related effort to provide increased access to aid, it has been suggested that
the problem of connecting victims of terrorism or any other disaster to philanthropic
and social services could be alleviated by instituting an abbreviated 211 dialing code
nationwide. On July 21, 2000, the Federal Communications Commission (FCC)
granted the abbreviated dialing code 211 as the universal number for accessing
information about community resources. According to a United Way document, as
of January 2000, 211 was under consideration in 48 states that had not yet launched
a 211 service, but significant activities in regard to starting 211 services had begun
in at least one locality in 33 of those states. The Brookings Institution and the Urban
Institute collaborated on a report entitled “Calling 211: Enhancing the Washington
Region’s Safety Net After 9/11,” dated September, 2002, with a policy
recommendation that local jurisdictions should create a 211 system (a regional
information and referral network) in the Washington D.C. metropolitan area.19
Congressional Oversight Hearings
With so much money raised, with so many charities involved, and with reports
of concern regarding the distribution of these funds, hearings were held in the U.S.
18 Barstow, David. Lesson in Hands-On Charity: Giving Away Cash Isn’t Easy. New York
Times, February 19, 2002, Section A. p. 1.
19 [http://www.211.org].

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CRS-8
House of Representatives on November 6,20 and November 8, 2001,21 addressing
charitable contributions for September 11. On November 6, representatives from the
American Red Cross, the United Way and the New York Community Trust and the
International Association of Firefighters testified before the House Committee on
Energy and Commerce. Officials from the Federal Trade Commission (FTC), the
federal government’s principle consumer protection agency, also testified as did the
New York State Attorney General. On November 8, the American Red Cross,
September 11th Fund (United Way N.Y.), Salvation Army, the New York State
Attorney General, the American Bar Association Tax Section of New York,
American Institute of Philanthropy, Better Business Bureau and the Exempt
Organizations Division of the Internal Revenue Service testified before the House
Committee on Ways and Means.
In the November 6 hearing, New York State Attorney General Eliot Spitzer
testified that he “was charged with overseeing those charities that solicit funds in ...
[N.Y.] state, as well as the charitable organizations, including foundations and
charitable trusts, which are created in or hold assets in ... [N.Y.] state .... to help
ensure that the interests of the public are protected when charitable funds are raised
and spent.” Toward that end, Attorney General Spitzer identified five critical areas
to provide such protection, as follows: 1) making it easier for victims to learn what
relief is available, and to access that aid; 2) creating a victims database, to facilitate
coordination, avoid duplication and ensure fairness in the aid distribution process;22
3) providing the American public with information about the amount of donations
received and expended, and the purpose of those expenditures; 4) investigating and
prosecuting any instances of fraud and abuse that arise; and 5) ensuring that a
working group of charities and victim advocates is established, to solve problems as
they arise and swiftly identify gaps in the services required to meet victims’ needs in
the future.
There was a general consensus among those testifying at the hearing that there
was very little known fraud concerning the funds.23 But a concern was raised by
committee members that when a specific fund is set up for a specific need, e.g., the
Red Cross Liberty Fund for victims of 9/11, then the expectation of donors is that all
of the money raised in that fund will go to meet that specific need unless it is very
clearly stated that some of the money would be put in reserve accounts for similar
tragedies.
20 U.S. Congress. House. Committee on Energy and Commerce. Subcommittee on
Oversight and Investigations. Charitable Contributions for September 11: Protecting
against Fraud, Waste, and Abuse. Hearings, 107th Congress, 1st Session, 2001.
21 U.S. Congress. House. Committee on Ways and Means. Subcommittee on Oversight.
Charitable Organizations’ Distribution of Funds Following Recent Terrorist Attacks.
Hearings, 107th Congress, 1st Session, 2001.
22 WTC Relief Info, available on the Internet at the World Trade Center Relief Info site
[http://www.wtcrelief.info/Charities/Information/pages/Basic.jsp?PageID=2]
23 Also see General Accounting Report entitled, September 11; More Effective
Collaboration Could Enhance Charitable Organizations’ Contributions in Disasters, dated
December 2002, pp.18-20 (GAO-03-259).

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CRS-9
This idea was reinforced by the testimony of a representative of The Better
Business Bureau Wise Giving Alliance, a nationally recognized monitoring
organization that sets accountability standards for charities and other soliciting non-
profits. The committee was told that the BBB Wise Giving Alliance had
commissioned Princeton Survey Research Associates to conduct a “Donor
Expectations Survey,” in the spring of 2001. This survey was released in September
2001. The findings indicated, among other things, that 86% of Americans gave to
charities in 2000; that Americans have very high expectations for ethics and
accountability by the charities; and that first and foremost the public needs to know
how the charity is spending their money. Specifically, 63% of the public expects the
money to be used for current needs rather than put in a reserve and 73% rate the
accuracy of a charity’s advertising and promotion as very important.24
Status of Selected Victim Relief Funds
An Overview Report issued by the Attorney General of New York 1 year after
the September 11 attack lists 52 charities that can account, as a group, for more than
90% of the donations for the relief effort. The report stated that as of September
2002 charities had collected well over $2.2 billion in donations, with much of the
money coming in during the first 60 days after the attacks. In many instances,
financial information regarding the program activities of the funds active in the early
stages of the September 11 relief effort will not be available until the respective
charities file their required “Form 990's” with the Internal Revenue Service or the
Charities Bureau of the N.Y. Attorney General’s Office. The New York Attorney
General stated that, “it is important to note that this survey, while broadly inclusive
of the many types of charities active in the relief effort, does not constitute a
complete description of the September 11 charitable sector.”25 For further
information concerning the unique challenges charitable organizations face in
soliciting contributions, selecting beneficiaries and distributing funds for wide-scale
disaster relief, see the policy brief by the Urban Institute, Managing Charitable
Giving in the Wake of Disaster.26
In the Attorney General’s report each organization is classified in four basic
categories (many charities fall into more than one category) as follows: Direct aid
providers (those that included in their activities the distribution of cash assistance and
/or reimbursement of victims’ living expenses); service providers (those that assisted
victims, e.g., through the efforts of their staffs and volunteers); scholarship providers;
and grant-makers (those that addressed September 11 by awarding funds to other not-
for-profits that would, in turn, provide direct aid or services). The following are
some of the largest charities listed for the New York Attorney General’s report; the
classification of the charity is included, following the name of the fund.
24 For the full report see [http://www.give.org/news/surveyintro.asp].
25 September 11th Charitable Relief: An Oversight at One Year (Rept. of N.Y. Atty. General)
[http://www.oag.state.ny.us/charities/september11_charitiable_report/sept11_report.html].
26 Steuerle, Eugene C. Managing Charitable Giving in the Wake of Disaster. Charting Civil
Society, no. 12, May 2002.

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CRS-10
New York State’s World Trade Center Relief Fund
Distribution (A direct aid organization)
This fund was established on September 14, 2001. Governor George Pataki
announced that as of September 16, 2002, of the $68 million donated to the fund,
more than $59 million has been distributed to the families of victims of the
September 11 terrorist attacks. The fund has issued more than 13,000 checks to
members of more than 2,400 families. Under the fund, the surviving spouse or
domestic partner of each victim will receive a total of $17,000; any surviving child
of the victim who is 21 years of age or younger will receive a total of $7,500,
(children over 21 will be eligible for a total of $7,500 if they can establish that the
victim was the source of at least 50% of his or her financial support). If there is no
surviving spouse, partner or child a total of $17,000 will go to the parents of the
victim; the fiancee of a victim will receive a total of $17,000. This fund has no
administrative costs.27
Twin Towers Fund (A direct aid organization and a service provider
organization)
Former Mayor Rudolph W. Giuliani established this fund to assist, support and
recognize the families of the members of the uniformed services of the New York
City Fire Department and its Emergency Medical Services Command, the New York
City Police Department, the Port Authority of New York, the New Jersey Police
Department, the New York State Office of Court Administration and other
government officers who lost their lives or were seriously injured because of the
terrorist attack of September 11, 2001. As of August 20, 2002, over $185 million
had been raised and 436 families have received over $155 million. The average
family grant is $355,000. The fund has made distributions to over 1,280 family
members of the rescue workers. The fund has operating expenses of about 1% of all
money raised; this operating expense is raised separately, ensuring that 100% of
donations go to the families.28
Liberty Disaster Relief Fund (Red Cross) (A direct aid organization
and a service provider)
On September 20, 2001, the Red Cross established the Liberty Disaster Relief
Fund as a separate, segregated account to fund relief services related to the
September 11 attacks. As of September 11, 2002, the fund revenue is over $1 billion.
Besides immediately setting up stations for relief and recovery at the sites (New
York, Pennsylvania and the Pentagon) a new program called the family grant
program was developed where, through an easy one-page application with no
receipts, a victim’s family was able to receive up to roughly $30,000 within 48 hours
of application to assist the family with mortgage payments, food and other bills.
27 For updates, see [http://www.nysegov.com/news/WTC_Relief_Dist.htm].
28 For updates see [http://www.twintowersfund.com/Distribution.html].

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Initially, there was some confusion within the Red Cross leadership and the
public, about whether the entire Liberty Fund was to be used solely to care for the
victims of the September 11 attacks, their families and the rescue workers, or
whether parts of this fund would be set aside to prepare for future terrorist attacks (a
set-aside is typical of the way the Red Cross deals with other types of disasters such
as hurricanes). On November 14, 2001, after the congressional hearings on
November 6 and 8, 2001, the Red Cross held a news conference to say that it would
spend the entire Liberty Fund to care for the victims of the September 11 attacks,
their families and the rescue workers and thereby, “... hope to restore the faith of our
donors and the trust of the American public.” On December 27, 2001, the Red Cross
asked Senator George Mitchell, former Senate Majority Leader, to serve as the
independent overseer of the Liberty Disaster Fund to assure donors that their
financial contributions were properly allocated to meet the ongoing and long-term
needs of the 9/11 victims and their families.
The Red Cross reports that as of September 11, 2002, $643 million from the
fund had been spent or committed. Between September 11, 2001, and September 11,
2002, the Red Cross reported that it had provided $511 million for assistance to
families who lost loved ones, people who were seriously injured in the attacks, and
to others who lost their homes, their jobs, or their livelihoods. During this same
period, the Red Cross spent $95 million on disaster relief services, including 14
million meals for disaster workers and victims, mental health services for over
237,000 people and health services for 131,000 people. Seriously injured individuals
and the estates of the deceased are currently receiving gifts of $45,000 each.
Additional financial assistance to help meet financial, health and other needs will be
available to extended and non-traditional family members, as well as traditional
family members and seriously injured individuals with compelling unmet financial
needs. Another $37 million was spent on fund stewardship activities such as
donation processing, acknowledgments and supplemental audit procedures.29
September 11 Fund (United Way) (A grant making organization)
The September 11th Fund was established by United Way and New York
Community Trust on September 11, 2001 to provide relief to victims and their
families. As of September 19, 2002, $510 million was collected ($341 million in
grants were distributed to 293 grantees). The breakdown of fund usage was: $290
million (85% of the total) went toward cash assistance and services for victims and
families; $41 million (12% of the total) went toward assistance to communities; and
$10 million (3% of the total) went toward rescue and recovery efforts. There were
100,000 people who received cash assistance including: 3,800 surviving families and
the severely injured, 35,000 who lost jobs, and 6,000 who were displaced from their
homes.30
29 A Review of the American Red Cross’ Response in the Past Year, September 2002.
[http://www.redcross.org].
30 For updates see [http://www.september11fund.org].

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International Association of Fire Fighters – New York
Firefighters 9-11 Disaster Relief Fund (A direct aid organization)
On September 13, this fund was established to provide financial assistance to
the families of all fallen firefighters and to coordinate efforts to assist fire and
emergency medical services personnel on the scene in New York City.31 As of June
30, 2002, the fund raised over $159 million, with 90% of the fund disbursed
including 1% used for administrative purposes.32
Safe Horizons (A direct aid organization and a service provider organization)
As reported in the New York State Attorney General Report, Safe Horizons has
raised nearly $110 million as of June 30, 2002, with 96% of the fund disbursed and
with 1% used for administrative purposes. (Safe Horizons aid and services were
funded predominantly by the September 11th Fund). According to their website, Safe
Horizons helped 9/11 victims and relatives apply for emergency compensation to
cover immediate expenses (rent, utilities, groceries etc.) as well as funeral expenses
and longer-term counseling. Presently, Safe Horizon Counseling Center, a licensed
mental health facility specializing in trauma counseling, offers group crisis support
to individuals as well as to businesses and organizations whose employees are
experiencing trauma and other related issues. Crisis Response Teams are available
to meet staff, provide group support sessions and consult with human resources
professionals for referrals to additional health and practical services.33
Families of Freedom Scholarship Fund (A service provider
organization)
This fund, founded on September 17, 2001 by Citizens’ Scholarship Foundation
of America (CSFA) and the Lumina Foundation for Education, is co-chaired by
Former President Bill Clinton and Former Senate Majority Leader Bob Dole. The
fund provides education assistance for postsecondary study to dependents of those
killed or permanently disabled as a result of the September 11, 2001 terrorist attacks
and during the rescue activities relating to those attacks. Specifically, the fund will
benefit dependents of the victims, including airplane crew and passengers, World
Trade Center and Pentagon workers and visitors, and relief workers, including
firefighters, emergency personnel and law enforcement personnel. A fund-raising
goal of $100 million was set. As reported in the 2002 CSFA annual report, the fund
31 Since this fund does not have a WEB page that discusses the dispersal of funds, funding
information was obtained in the 1 year overview report prepared by the New York State
Attorney General.
32 [http://www.oag.state.ny.us/charities/september11_charitiable_report/sept11_report.html].
33 See [http://www.safehorizon.org]. Fund dispersal information is not included in the Safe
Horizons WEB cite.

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CRS-13
raised $105 million in less than 1 year.34 Funds were received from more than 20,000
donors. CSFA pledges that 100% of all contributions to the fund will support
undergraduate education of eligible students. The fund extends to currently enrolled
students as well as future students continuing through the year 2030. As of
September 2002, approximately $865,000 in scholarship assistance has been
distributed to 114 students currently enrolled in postsecondary study. Also, as of that
date, 2,169 eligible individuals have registered in the CSFA data base, including
1,474 children, 669 spouses and 26 domestic partners or children of domestic partner
relationships.
Uniformed Firefighters Association Widows and Children’s
Fund (A direct aid organization)
The September 2002 report of the New York State Attorney General stated that
this fund has raised $71 million since the September 11 disaster; the Attorney
General also reported that 51% of that amount had been disbursed as of September
2002. One percent of the funds raised was used for administration of the funds.
Beneficiaries of the fund are listed as family survivors of the uniformed services. 35
The New York Police & Fire Widows’ & Children’s Benefit
Fund (A direct aid organization)
This fund was established 17 years ago. In a summary dated September 1, 2002,
it was reported that after the events of 9/11 more than $115 million was raised. The
funds were quickly distributed, with $100,000 going to each September 11 widow
or widower, including New York City police officers and firefighters, Port Authority
police officers and emergency medical services personnel. An additional $18,000
was expected to be distributed to each of the 9/11 widows in October 2002. Further,
for 17 years the fund has sent annual distributions to the “historical” widows of New
York police; in conformance with this practice a one-time $30,000 distribution was
made to each of these widows with an additional $8,000 distributed to these widows
in October 2002. It is expected that approximately $12,000 will be distributed
annually to each of the approximately 725 widows and widowers (both 9/11 and
historical) beginning in 2003, and continuing for each year through 2009.36
34 See [http://www.csfa.org].
35 [http://www.oag.state.ny.us/charities/september11_charitiable_report/sept11_report.html].
Fund dispersal information is not included in the WEB cite.
36 See [http://www.nypfwc.org/about_us.cfm].

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