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The Effects of 9/11 on Non-Profits

JESfacade.jpg (20410 bytes)       NEW YORK CITY --- On September 11, 2001, Sydney Stewart’s fortunes reversed drastically. Just the day  before, the IRS granted her small charity official tax exempt status. Her local, New York City nonprofit, Better Youth, brings performers and small presents to hospitals and schools. After the terrorist attacks, it was painstakingly clear that her cause, no matter how noble, would have to be put on hold.

       "Sept. 11 knocked the wind out of us," said Stewart, the charity’s executive director. "We knew immediately that we couldn’t approach people for funding - at that time everyone was giving to the 9/11 funds."

Destroyed Offices, Delayed Contributions
JESwindow.jpg (18596 bytes)      Stewart’s story, as well as the fate of her nonprofit, is an all-too-common one, especially here in NYC. Many of the charities that combat diseases like Alzheimer’s and diabetes, and social problems like poverty and homelessness, received fewer and smaller contributions since the terrorist attacks. Many once-committed donors now wanted to spend money assisting myriad relief funds. Funding problems were worsened by a lagging economy. Other nonprofits have their own tales of stalled renovations, smaller-than-usual fundraising events or cost-cutting measures.

       The havoc wreaked by the terrorist attacks affected numerous charities. For many more groups, contribution funds were delayed or never came at all. Fundraisers were sometimes cancelled because individual donors like Cantor Fitzgerald employees died in the attacks. Nonprofits in their founding phases suffered setbacks.

       Some offices were seriously damaged, for instance. The headquarters of Helen Keller Worldwide, which provides a wide range of services for the blind, was destroyed. Its offices, across the street from the World Trade Center, collapsed two days after the attacks. Lost inside were computers, hardware, records, and personal documents belonging to Helen Keller, the charity’s founder. Damages totaled more than 4 million dollars, according to a HKW spokesman, Alec Rowe.

       Larger charities like the American Heart Association and the American Diabetes Association suffered, too. Between September and December, AHA’s donations fell 3.2% from the comparable period the year before. Its direct-mail revenue tumbled nearly 6%. ADA, meanwhile, slashed $5 million from its $200 million budget to make up for a post-Sept. 11 slowdown, said John Graham, their president. The association had forecast a 10 - 13% increase in revenue this year. Falling short several million dollars between September and December, the actual increase will be closer to 8%, Graham said.

A Post 9/11 World
JESsunlight.jpg (18491 bytes)       As to future effects of Sept. 11, Eugene Temple, executive director of the Center on Philanthropy at Indiana University, said much depends on the economy and the ability of organizations to sustain loyal donor bases.

       Other experts, like Fran Magnusson, program director at New York University’s Center for Philanthropy and Fundraising, were more reluctant to make predictions.

       "It was a very disastrous event," she said, "but we don’t know what’s coming. We’re all feeling vulnerable."

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by Eric Tucker, Hearts & Minds volunteer editor  
This web page and entire website © Copyright: 1997 - 2007 by Hearts and Minds Network, Inc., Photos © 2001 by Jan Szumanski.  http://www.heartsandminds.org/help/charities.htm - latest text changes April 7, 2006.

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