Are Politics and Incompetence Inhibiting Contributions to Katrina Relief?

Jay at Radical Centrist presents anecdotal evidence from his own community that says they are. He reports on a gathering of his Silicon Valley neighbors:

The reason these regular donors were sitting on their wallets? Politics. Katrina is no longer a simple natural disaster, it has become a political event, which drives some of the potential donations and volunteers away. The reaction came from both sides of the political spectrum. One of the more significant donors is so frustrated and angry at the government that she "doesn't want to jump in and do his job." One guess who the "him" is. Others were turned off, and turned away by the ugly racial angle. "Playing the race card" was a powerful disincentive to these (mostly) white potential donors. The need of the victims was apparent, but the relief effort had acquired the bad taste of racial politics, and they felt they would rather find other ways to contribute.

I hope this isn't a widespread reality. Relief is too important and there are far too many reputable non-governmental agencies that will be involved for us to sit on our wallets now!