WP,pg1: Red Cross Borrowing Funds for Storm Aid: Draws New Scrutiny

[DeepModem Mom]

Red Cross Borrowing Funds for Storm Aid
Loan of $340 Million Comes as Nonprofit Draws New Scrutiny
By Jacqueline L. Salmon and Elizabeth Williamson
Washington Post Staff Writers
Friday, October 28, 2005; Page A01


The American Red Cross said yesterday that its response to hurricanes Katrina and Rita has depleted its Disaster Relief Fund, forcing it to borrow $340 million to cover costs -- the first time in its 124-year history that the charity has sought a loan for disaster relief.

Of the $2 billion in donations the organization said it needs to handle relief efforts from the Gulf Coast hurricanes, it has received $1.3 billion and spent all of it. "Our best projections indicate we're going to have a shortfall of about $400 million," spokeswoman Carrie Martin said. "We're still determining how much Wilma will cost."

The financial problems come as some members of Congress and other relief agencies have begun to question the Red Cross's Katrina response, its largest ever. Many of the difficulties the charity has encountered this year mirror problems that surfaced in past catastrophes, records and interviews show.

The Red Cross holds near-mythic status as the premier U.S. disaster relief agency, a role reinforced by the federal government, which has incorporated the organization as a key part of its disaster response.

But the $3 billion charity spends two-thirds of its resources on blood collection, not disaster relief. And 90 percent of its disasters are small fires and local mishaps. During larger events -- such as violent storms, wildfires and the Sept. 11, 2001, terrorist attacks -- the Red Cross has stumbled repeatedly, misleading donors on how contributions are used and underserving victims, particularly in rural minority communities, according to other relief groups and experts on nonprofit agencies....


http://www.washingtonpost.com/wp-dyn/content/article/2005/10/27/AR2005102702392.html?sub=AR

[panader0]

1. Didn't I read

that the head of the RedCross got some humongous salary?

[tishaLA]

4. Over $600K

[Lerkfish]

2. but all I read here was how the red cross was PREVENTING aid...

from individuals.

methinks a republican pocket or pockets is now fatter.

[Jacobin]

3. I'd like to see a detailed financial report on the Red Cross

Maybe a summary is available on line, but I'd like to see a detailed one.....the kind companies, non profit or not, are loathe to give outsiders.

Some sunshine on their books might be in order.

[zann725]

5. Didn't anyone catch Shrub's comment (with a REAL wink) to send "cash"

to Red Cross (right after Katrina). And how he and Laura had a "meeting" with R.C. shortly after to "thank them" for their aid. (Yet the R.C. allegedly did NOT enter the disticts in N.O. most needing their help. And assuming they had to "subcontract" out all assistance numerous times over due to price-gouging Haliburton-related groups....#2 Billion would disappear quick. The cost of that truckload of ice that was shipped cross-country, and back about 3 tims and stored in Maine for a while...probably cost $1 Billion alone!

[Ian David]

6. I'm hesitant to bad-mouth The Red Cross too badly in public

Yes, they are screwing-up many things. And yes, they've hired mercenaries from Blackwater Corp. for security. But they're also the only group that seems to actually be doing some good.

To summarize one DUer from Texas, The Red Cross was the only group showing-up and doing something in his town when they got hit by Rita.

If The Red Cross is truly "Republican Red" and also profoundly screwed-up, then I would be happy to recommend to people a more appropriate and comparable organization.

In other words, I'd like to avoid "going negative" against The Red Cross, and instead just start re-directing people to a more suitable organization.

Ideas?