[Congressional Record (Bound Edition), Volume 147 (2001), Part 13]
[Extensions of Remarks]
[Pages 18692-18693]
[From the U.S. Government Publishing Office, www.gpo.gov]



        CHAIRMAN OF CITIGROUP, SANDY WEILL, GIVES A HELPING HAND

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                          HON. EDOLPHUS TOWNS

                              of new york

                    in the house of representatives

                       Wednesday, October 3, 2001

  Mr. TOWNS. Mr. Speaker, I would like to bring to your attention the 
insightful article from the October 1 edition of USA Today that 
reflects the philanthropic efforts of corporate America to assist the 
victims of September 11.
  The article illustrates the scope of the corporate philanthropy 
taking place to help my constituents and all those affected by the 
attacks. Leading the charge is Citigroup which has set up a $15 million 
education fund for all the victim's children. CEO and Chairman of 
Citigroup, Sandy Weill described the mindset of America's corporations, 
as he talked about the company's employees ``not just giving their 
money but their time and talents'' to help the victims.
  As we struggle with the grief and new realities before us, I ask that 
we also look to the compassionate efforts of the individuals and 
corporate America as a symbol of what makes America great. The efforts 
of Citigroup and others are not going unnoticed in Washington or across 
the country and I would ask you all to join me in thanking those who 
have helped during this time of great need.

                     [From USA Today, Oct. 1, 2001]

           Corporations Setting Up Own Charitable Foundations

                           (By Julie Appleby)

       Restaurateur Waldy Malouf never thought he'd be running a 
     charity. But he has joined a growing number of executives who 
     are doing just that.
       In coming weeks, he'll be helping decide how to dole out 
     millions of dollars to families devastated by the attack on 
     the World Trade Center.
       And he's not alone.
       Some big-name corporations, and a few trade associations, 
     have created their own multimillion-dollar relief funds, 
     determining how, where and to whom to give the money.
       As the events of the past weeks have been unprecedented, 
     so, too, are these efforts: Corporations don't generally give 
     direct financial aid to victims.
       ``We had to take care of our own,'' says Malouf, co-owner 
     of Beacon Restaurants, which lost 76 employees in the Windows 
     of the World of the World Restaurant in Tower One at the 
     World Trade Center.
       He and his business partners spent a whirlwind week 
     creating the Windows of Hope Family Relief Fund, aimed at 
     helping the families of food-service workers killed in the 
     collapse of the towers. Without such a fund, Malouf feared 
     that bus boys and waitresses would be overlooked in the 
     outpouring of support for other victims.
       Such efforts are generally being overseen by top business 
     executives, many of whom have served on the boards of 
     charitable organizations.
       Philanthropy experts caution that this planning to give 
     direct aid--rather than funneling money through private 
     foundations or established relief groups--face challenges.
       ``The danger is that companies may be amateurs in running 
     effective relief funds,'' says Kirk Hanson, who has studied 
     philanthropy for 20 years and heads an ethics center at Santa 
     Clara University in California. ``They will need to look to 
     experts in relief to ensure the money is spent wisely.''
       Who, for example, will oversee the funds and provide an 
     accounting of the monies spent? (Funds that obtain charity 
     tax status will report itemized details to the IRS, but not 
     all are seeking that status.)
       Which victims will get money and how much? Will the money 
     go only to families of those who died, or could the 
     definition grow to include the injured or the unemployed?
       Publicly traded companies may face opposition from 
     shareholders about how money is distributed.
       ``This is one of the thorniest problems of disaster 
     relief,'' Hanson says. ``Any charity engaged in direct aid 
     has to struggle with the definition of who is needy.''
       Which is what Malouf and other firms wrestled with last 
     week.
       ``There are a lot of legal and moral and ethical issues 
     that come up that you have to grapple with,'' says Malouf.
       One example: Three carpenters were working in the Windows 
     on the World Restaurant when the attacks occurred. All three 
     died.
       The relief fund, however, is designed to help restaurant 
     workers. Would the carpenters' families be eligible?
       ``In that case, we know the families, and we probably will 
     help. They might not have been washing dishes, but they were 
     working on the restaurant,'' Malouf says.
       Malouf and other executives say they are either hiring 
     administrators to run the funds or relying on to executives, 
     many of whom have served charitable organizations.
       ``It's more difficult (to run a fund), but we've always had 
     a philosophy that we have talented executives who can be 
     helpful in working on a lot of things other than business, 
     giving not just of their money, but of their time and 
     talents,'' says Sandy Weill, chairman and CEO of Citigroup.
       His company, which already supports charities and student 
     programs through its foundation, plans to run its own $15 
     million scholarship fund to help children who lost parents in 
     any of the attacks, including the one on the Pentagon.
       ``We'll sit down with the appropriate people and come up 
     with (eligibility) criteria that will be simple, that people 
     can understand,'' Weill says. ``I don't think it's rocket 
     science.''
       Many of the companies that have established funds have 
     earmarked them for specific purposes.
       Morgan Stanley has set aside $10 million to aid the 
     families of its own employees who were injured, missing or 
     killed in the World Trade Center, along with families of 
     missing rescue workers.
       The National Association of Realtors has raised $2.5 
     million to help the families of victims from any of the 
     attacks make rent or mortgage payments.
       ``The money is targeted for families who have lost a 
     breadwinner as a result of the tragedy and might be in 
     jeopardy of missing housing payments, spokesman Steve Cook 
     says.
       Money will be given out on a first-come, first-served basis 
     in Massachusetts, Connecticut, New York, New Jersey, 
     Maryland, Virginia and Washington, D.C.

[[Page 18693]]

       At DaimlerChrysler, executives are pondering whether they 
     want to turn over their $10 million children support fund to 
     an outside organization to manage.
       ``You need people who have expertise in the endeavor,'' 
     spokesman Dennis Fitzgibbons says.
       At Alcoa, where a $2 million relief fund has been set up, 
     executives won't rush to fund anything immediately, 
     preferring to wait to see where the greatest needs are, 
     spokesman Bob Slagle says.
       ``We believe we are capable of sorting through some of 
     these difficult issues and really making a different,'' 
     Slagle says.

     

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