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KATRINA DONATIONS PASS $1 BILLION MARK

by Aleksandrs Rozens

September 19, 2005; 5:33 PM

Associated Press

NEW YORK -- In the three weeks since Hurricane Katrina and its floods created watery havoc in U.S. Gulf states, Americans have donated just over $1 billion to charities aiding families displaced by the disaster.

That pace of giving exceeds the rate in the two weeks following the Sept. 11 attacks on America, and in the two and half weeks after 2004's massive tsunami.

Contributions surged on events such as the call by President Bush last week for Americans to support the relief efforts, as well as numerous televised events featuring musicians and celebrities, according to those involved.

"We have seen spikes in giving based off of those things (television telethons for Katrina families)," said Melissa Temme, spokeswoman for The Salvation Army.

Stacy Palmer, editor of The Chronicle of Philanthropy, believes the total amount of donations could eventually hit $2 billion.

"It is definitely possible. It depends on what the government decides to do and how much more money is needed from the private sector," said Palmer. "A lot of people wait until they are asked by a role model. Celebrities are very good at encouraging people to give to causes."

The bulk of donations are going to the American Red Cross, which as of midday Monday had collected $762.5 million, while the Salvation Army garnered $85.7 million, according to Palmer. An initiative started by former U.S. Presidents George H. W. Bush and Bill Clinton has attracted $100 million in donations, Palmer said.

Among the celebrities to offer individual donations, actor George Clooney has given $1 million to the United Way Hurricane Katrina Response Fund, courtroom thriller writer John Grisham has given $5 million to a relief fund he and his wife set up to aid Mississippi residents, and hip hop star Jay Z has given $1 million to the Red Cross.

Palmer estimated that roughly half of the $1 billion collected for those displaced by Katrina comes from corporations, and half from individuals.

So far, the largest corporate donation has come from Wal-Mart Stores Inc., the retail giant, which has given $15 million to the Bush-Clinton effort. The Walton family, which owns a majority of the retailer, donated another $15 million.

Other corporate donations have come from Exxon Mobil Corp., which staked $7 million to the charities, and General Electric Co., which is giving $6 million to The American Red Cross. General Electric is also providing $10 million of services and products such as water purifiers and medical devices. Miller Brewing Co. has promised up to $1 million to the American Red Cross and 15 truckloads of water each week this month.

Starbucks Coffee Co., meanwhile, has promised $5 million over a five-year period.

Asked what is driving the pace, Palmer believes "there is more empathy for people affected, and people feel charitable donations will help people rebuild their lives."

Among those mustering support for Katrina families are athletes.

Two National Football League games on Monday will incorporate a fundraising telethon from ABC's Times Square studio in New York City. The telethon will raise money for the Bush-Clinton Katrina fund, and callers donating money may get to speak with their favorite football player.

Among those scheduled to be at the studio to answer calls and accept pledges are Hall of Famers John Elway, Bart Starr, Marcus Allen, Eric Dickerson and Steve Largent. Current players include Chad Pennington, Curtis Martin, Brian Dawkins and Dhani Jones.

The NFL, its owners, clubs and players have contributed nearly $10 million for hurricane relief.

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