Tuesday, June 17, 2008
By Amy Lorentzen, Associated Press
DES MOINES -- The American Red Cross said on Monday that its Disaster Relief Fund is wiped out and it's being forced to borrow money to help flood victims throughout the Midwest.
Jeff Towers, the organization's chief development officer, said the balance for domestic disaster relief efforts is zero. He said the American Red Cross would borrow to keep workers and volunteers in the field helping flood victims.
"The Red Cross remains committed to providing the scale of services that people expect of the Red Cross when disaster strikes, and the way that we are doing that right now is taking out loans to fund our response," he said during a conference call from Washington. "That's not a position we want to be in; it's obviously not sustainable."
The shortage in the organization's only domestic disaster relief fund comes as it continues flood relief efforts in soaked Iowa and ramps up its work downstream in Illinois and Missouri as more flooding is expected there. Officials said the Red Cross has 2,500 workers on the ground, 89 percent of them volunteers.
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