Citizens donated at least $2.7 billion to Sept. 11 charities, but problems distributing that money point to the need for the federal government to coordinate massive charitable efforts, congressional investigators say.
The General Accounting Office suggested the Federal Emergency Management Agency begin working with major charities to determine the best ways to collect and distribute contributions.
FEMA should help charities develop a common application form and confidentiality agreement, build databases of those receiving aid in particular disasters and improve education about charitable giving, said the GAO, Congress' investigative arm.
Lack of coordination among charities immediately after the attacks caused confusion for aid recipients, who had to navigate a maze of service providers and contend with an intimidating bureaucracy, according to the report.
Several months after the attacks, a more organized distribution effort emerged, as large charities and oversight agencies worked together and coordinated client databases. But the GAO said federal oversight is the best way to help dozens of independent charities work together in the future.
The report was requested by Sen. Charles Grassley, R-Iowa, who said the recommendation to involve FEMA makes good sense.
"Charities can learn many lessons from the events of Sept. 11," Grassley said. "By working together to pool information and resources, I believe charities can do an even better job at helping those in need."
FEMA spokeswoman Lara Shane said the agency has already met this year with charitable organizations to address some of the concerns laid out in the report.
"We're working with charitable organizations to prioritize issues and identify where they would like FEMA to help," she said.
The GAO said it's impossible to determine exactly how much money was raised after the attacks. But it said the 35 of the largest charities collected $2.7 billion, 70 percent of which has been distributed to survivors or spent on disaster relief so far.
The GAO said charities have taken a number of successful steps to prevent fraud. However, the report concluded, "the total extent of fraud is not known and it will be difficult for charities and oversight agencies to assess."
In New York, more than 200 people have been arrested for allegedly defrauding agencies trying to help victims of the terrorist attacks, according to the city's district attorney's office.
Many of the report's findings mirrored conclusions in a preliminary report issued in September. FEMA officials agreed then that the federal government should help coordinate huge charitable efforts.