1/11/13 NY Daily News: Donations for Sandy victims may not be going entirely to victims and recovery, says watchdog

Donations for Sandy victims may not be going entirely to victims and recovery, says watchdog

Disaster Accountability Project says some organizations have misled donors on what the money will be used for

By Clare Trapasso / NEW YORK DAILY NEWS

Friday, January 11, 2013, 6:00 AM

About $400 million has been reported in Superstorm Sandy aid — a figure calculated through surveys of charities that help areas such as Breezy Point, seen here on Nov. 1. But a watchdog group says the real figure may be closer to $550 million.

Victims of Superstorm Sandy may not be receiving all the donations that have poured in for them, according to a disaster aid watchdog group.

The Disaster Accountability Project, which examined Sandy donations to charities and nonprofit groups, said many groups are misleading donors on how the funds will be used.

“A lot of organizations have been using Sandy pictures [in fundraising], but their online donations pages aren’t Sandy specific,” Ben Smilowitz, executive director of the D.C.-based group told the Daily News on Thursday. “It’s impossible for the public to know where the money is going.”

He said about $400 million has been reported in Sandy aid — a figure calculated through surveys of charities. That estimate jibes with a state Attorney General tally.

But Smilowitz believes the number is closer to $550 million as some groups are not classifying donations as Sandy-related. That means the money could wind up funding relief efforts elsewhere.

“It’s not honest if you’ve raised that money with pictures and stories of Sandy survivors,” he said.
Much of the money will be used for long-term projects, he said, leaving bank accounts flush with cash and earning interest.

“Some groups put that money to the relief effort and some groups take the money for their general operations,” he said.

Smilowitz also took aim at the American Red Cross for not accounting in detail for where its donations have been spent.

The group, which has come under fire in the past for how donations are used, has raised about $235 million for Sandy relief, Red Cross officials said.

“Any money that was donated for Sandy will go toward Sandy,” said Greater New York Regional spokesman Sam Kille.
The group spent about $110 million on food, supplies and shelters for storm victims. The rest of the money will go toward repairs and rental assistance, he said.

Daniel Borochoff, president of CharityWatch, a Chicago-based watchdog group, said he’s worried about scammers launching online fundraising campaigns.

“I am concerned about money being diverted from the real victims or certain victims receiving windfalls and other victims not receiving anything,” he said.

Bob Ottenhoff, CEO of the Center for Disaster Philanthropy, said he believes most of the Sandy aid raised will go to the recovery.

But more money still needs to be raised for the rebuilding of devastated communities, he said.

“There’s a surge of support immediately after the disaster, but the surge pretty much peters off after six or eight weeks,” Ottenhoff said. “Yet the scope of the disaster still has a long way to go.”

ctrapasso@nydailynews.com

Read more: http://www.nydailynews.com/new-york/queens/sandy-donations-article-1.1237742#ixzz2J7Kd8UUq