Administrators feel fund has served its purpose

Tuesday, April, 8, 2008; 12:00 AM | 7 | | Print

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Since last April 16, millions of dollars have been given to several different relief funds in the names of Virginia Tech students and faculty or the university itself.

The Hokie Spirit Memorial Fund received more than $8.5 million from over 21,000 people and groups, according to the fund's Web site.

The account is actually composed of 34 separate funds: the Hokie Spirit Memorial Fund, which was meant to pay for costs created by the shootings and support memorials; the Hokie Spirit Scholarship Fund, that will help students financially university-wide; and 32 memorial funds in the name of each of the deceased. Although the HSMF closed on Dec. 31, 2007, anyone still wishing to donate can give to the other 33 funds.

Kenneth Feinberg, a Washington, D.C.-based attorney who specializes in "mediation and alternative dispute resolution," according to his company's Web site, served as administrator of the HSMF. He said the over $8 million was distributed to about 70 people. Families of those who were killed each received $212,000, families of the injured received less, and the remainder was given to those who were in Norris second floor classrooms when the shootings occurred.

He said that of the thousands of donations, the New York Yankees' $1 million donation was by far the largest.

Along with Tech administration and other members of the fund's allocation group, Feinberg felt that the end of the year would be the best time to end the fund.

"We felt that by Dec. 31 we would know who would contribute so that we could distribute the money," Feinberg said. "We felt that it was important to get the money out as soon as possible."

Mary Ware, director of Virginia's Criminal Injuries Compensation Fund, became involved with the fund after noticing that those already in charge "were having some directional challenges." Her office responded to the 9/11 attacks and the Appalachian School of Law shootings and works with violent crime victims on a regular basis.

"I look at (the) whole campus as a victimized entity," Ware said. "I think that when victims don't get their needs met, they start to focus on tangible things like money."

She explained that immediately following the April 16 shootings, people wanted to help and chose to do so by sending checks. But until the HSMF was up and running, Ware's office partnered with the Red Cross to pay for many victims' claims. These payments went toward families' out-of-pocket expenses, such as hospital bills and funeral charges.

Ware said the Red Cross failed to receive a lot of credit for helping with the payments, but it donated a substantial amount of money. For example, the CICF caps its funeral payments at $5,000, so the Red Cross would pay for any remaining balance.

Ware also commended the work of Feinberg, who helped Tech pro bono.

"I didn't think it would be appropriate to get paid for helping the victims," Feinberg said.

Although Ware said the April 16 shootings certainly represented a large-scale tragedy, it is not the only school shooting that has happened recently. In the last 10 years, 40 school shootings have occurred nationwide. Of those, 36 have been in the eight years since the Columbine shooting.

Ware said she was not surprised by the amount given to victims. Vice President of University Relations, Larry Hincker, said the university was surprised by the "very large sum of money" that was received.

"I think the university was in awe of the outpouring of support from around the country, not only the financial support but all the ways the American public and people around the world expressed their emotions," Hincker said.

Leave a comment 7 Comments Write a letter to the editor

Fred | # April 7, 2008 @ 11:01 PM — Flag Comment

I felt compelled, as did many other people, to contribute to the Hokie Spirit Memorial Fund in the wake of this terrible tragedy that was inflicted upon our school. It is right though now to call for an end to the payouts to the relatives of the deceased. Two-hundred, twelve thousand is a lot of money - a lot more than what they would have received from the state had their child/spouse ended up shot dead on the streets of a major city in a random act of violence. No more money should be distributed to these families, either through the "proposed settlement" that Gov. Kaine has been touting or through reopening the HSMF. Some families are sizing up a yacht or second home with this anticipated money. I say no to that on the contributor/taxpayer's dime.

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Al | # April 7, 2008 @ 11:15 PM — Flag Comment

"Some families are sizing up a yacht or second home with this anticipated money." Wow. Way to be offensive.

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Fred | # April 7, 2008 @ 11:24 PM — Flag Comment

In the words of one of Thomas Fadoul, attorney and cousin to victim Reema Samaha (as mentioned in the Washington Post story 'Va. Tech families seek payment' July 18, 2007 B1) (quote) Fadoul said he is not sure how large the Virginia Tech fund would need to be. But he said the relatives of the 32 slain students and faculty members are entitled to "_at least what the 9/11 people got_." (end quote) Greed! Every homicide related need of the family (funerals, tuition forgiveness, travel) has been amply covered by the HSMF and/or the Red Cross. What do these families need an EXTRA $100,000 for to add on to the $212,000 they already have received?

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Da | # April 8, 2008 @ 6:48 AM — Flag Comment

My big question is more along University lines... millions were donated but what are they doing with all of the money they earned in interest?

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Deb | # April 8, 2008 @ 10:06 AM — Flag Comment

Da, yours is a horrible question which shows your 1) selfishness and 2) ignorance of finance. It is HIGHLY unlikely the university would have or could have invested the $8.5 million (which isn't that much money for a large institution) for a couple reasons. First, the money was distributed shortly after it was donated so it could not have been invested for any market beating returns in the first place. Next, there are liquidity restrictions to investments. This means that you can't have your money in a successful investment fund and have the luxury of taking it out whenever you want without fines or in most cases, not at all. Even if the school had invested it in a rogue hedge fund (which it did not for the above stated reasons), it could have only expected to make around 600k-900k - chump change. And with the market tanking Comeon! This is only $25 dollars per student. Please, just stop.

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Anonymous | # April 8, 2008 @ 12:45 PM — Flag Comment

These families need to take in to consideration the Hokies who are still here and yet to come. Who do they think will end up paying for their settlements? Oh, can we say tuition hike? I am sorry they lost someone, but making the rest the student body pay is not the answer. No amount of money will bring their loved ones back. It makes me ill to think that they are demanding more.

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Anonymous | # April 8, 2008 @ 12:46 PM — Flag Comment

These families need to take in to consideration the Hokies who are still here and yet to come. Who do they think will end up paying for their settlements? Oh, can we say tuition? I am sorry they lost someone, but making the rest the student body pay is not the answer. No amount of money will bring their loved ones back. It makes me ill to think that they are demanding more. Money will not heal their wounds or ours.

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