Mellody Hobson: How to Help Hurricane Katrina Victims

ByABC News via logo
August 31, 2005, 1:52 PM

Sept. 1, 2005, — -- According to preliminary estimates by Munich Re, the world's largest reinsurer, Hurricane Katrina caused $15 billion to $20 billion in insured damages. This amount rivals the damage caused by Hurricane Andrew in 1992 -- the largest hurricane to hit the United States -- which caused $21 billion in insured damages. To put this amount into context, in 2004, four hurricanes -- Charley, Ivan, Frances and Jeanne -- produced $23 billion in combined damages with Charley being the costliest of the four with $7.5 billion in damages.

What can I do to help?

Most relief organizations are soliciting monetary donations as money can be dispatched quickly to devastated areas. For example, many relief organizations will be issuing cash vouchers to victims. That said, with literally thousands of relief organizations worldwide, trying to find one that meets your specific criteria can be daunting. The Internet is a great place to begin your search, but be warned -- a Web address is not a guarantee of legitimacy. In an effort to provide a safe and straightforward way to find legitimate organizations on the Web, the federal government -- specifically the U.S. Agency for International Development and the U.S. Department of Health -- sponsors a site with links to agencies dedicated to the relief efforts. This Web site, www.usafreedomcorps.gov, is an excellent starting point. You also may want to visit the following sites which provide a variety of details about thousands of charities, such as the individual goals of a charity, its tax status as well as financial data.

The Internal Revenue Service: www.irs.gov.

Although charity watchdog groups vary slightly in terms of their rating processes, they generally suggest that you seek out charities that spend at least 65 percent of their total expenses on program activities with the remainder going toward fundraising and administrative expenses.