L.A. City Board Seeks Accounting From ‘Pop Charities’ : USA for Africa Grants $9.64 Million for Relief

The USA for Africa Foundation, which produced the 1985 anti-famine hit “We Are the World” and organized last year’s Hands Across America fund-raiser, announced $9.64 million in new relief grants for both America and Africa on Wednesday.

Officials promised that another $10.32 million in grants would be awarded by May 25, the first anniversary of the Hands Across America event when 5.5 million people held hands along a route that stretched from New York to Long Beach.

Meanwhile, the Los Angeles City Board of Social Service Commissioners announced that it would hold a public hearing next month on a number of “pop charities” in response to reports that they have been slow in distributing and accounting for “tens of millions of dollars raised for homeless and famine relief.”

Besides USA for Africa, pop charities include two other Los Angeles organizations that raised millions for the homeless and for African relief: the Live Aid Foundation, based in Marina del Rey, and Comic Relief, with offices in Century City. The remaining pop charities include London’s Band Aid Trust and Sport Aid and the Farm Aid Foundation of Cambridge, Mass.

“While these charities have distributed over $100 million, for which they should be applauded, our present concern involves almost $100 million yet to be released,” commission Chairwoman Karen Pines said.

Accounting of Spending

At the beginning of 1987, the six charities cited by Pines had earned nearly a quarter of a billion dollars and had not yet spent about $100 million.

“We would be delighted to show the commissioners how we distributed the funds we raised,” USA for Africa President Ken Kragen said Wednesday.

At the April 27 hearing, the pop charities will be invited to submit their budgets and overhead expenses, the qualifications of their staff and board in the area of relief work, verification of their past relief efforts as well as a plan for distribution of unspent funds.

Kragen said his foundation hopes to have distributed 80% of its funds by May 25.

“The information released Wednesday and the grants that will be awarded will answer questions about our organization,” Kragen said.

Along with its grant announcements Wednesday, the Century City-based USA for Africa organization released the results of an audit, showing that it took in $82.5 million in 1985 and 1986. Kragen told Associated Press that another $1.5 million has come in since the beginning of 1987.

A USA for Africa press release put the total raised from record royalties, donations and other revenue associated with the “We Are the World” recording session at $53 million. As of Wednesday, $41 million of that total had been spent on African famine relief and American homelessness.

The foundation did not reveal how much Hands Across America raised, but did report that the audit showed about $15 million was available for distribution to America’s homeless and hungry.

In the past, the organization has reported that the event raised a total of about $32 million in corporate and individual contributions. Of that sum, about $16.5 million was spent on expenses and a “public education” campaign in conjunction with Coca-Cola, prior to the 15-minute transcontinental celebrity sing-along May 25, 1986.

According to the Los Angeles Department of Social Services, which oversees charities, most of the unspent USA for Africa funds are invested in interest-bearing certificates of deposit.

Grants announced Wednesday include $1.85 million for organizations in at least 14 states that aid America’s homeless and hungry, and $7.79 million for 34 international relief and development organizations working in the famine-afflicted countries of northern and eastern Africa.