The Red Cross in the Cross Hairs?

Families of Oklahoma City bombing victims say they did not receive funds sent to them by mail and handled by the Red Cross. And questions are being raised in New York City.

In a time of national tragedy the true spirit of America shines through, and nowhere is this more evident than in the outpouring of extraordinary amounts of money for the survivors and families of victims of the Sept. 11 terrorist attacks. To date, nearly $800 million has been donated to various funds and charitable organizations. And the flood continues as every day it seems some new fund is created. While it now appears that donations are likely to go well over the $1 billion mark by the end of October, issues are being raised about how much of that will make it to those for whom this outpouring was intended.

Who or what is responsible for making sure this money gets to the intended recipients? Will it go to current victims and their families or will some go into larger portfolios for future crises? And how much of the collected funds will cover administrative expenses and fund raising or mailing-list prospecting?

To try to answer these questions Insight has been looking at what happened to the huge sums collected in the aftermath of the bombing of the Alfred P. Murrah Federal Building in Oklahoma City on April 19, 1995. While the families interviewed were reluctant to discuss the level of support provided them by charitable organizations, this magazine discovered a different picture than was (and is) being publicly portrayed.

For instance, Insight has learned that letters of condolence and donations sent through the U.S. Postal Service and deemed “undeliverable” often are turned over to charitable organizations involved in disaster relief. Sometimes mail would be addressed in care of a charity or fund. A case in point: the American Red Cross. The Postal Service received thousands of cards, letters and gift packages that were addressed, for example, to “the woman who lost two kids,” the “rescue dogs” or the “family who lost the little boy.” Both the Postal Service and the Red Cross have confirmed that within weeks of the bombings most of this mail was forwarded through the postal system to the Oklahoma City chapter of the American Red Cross where it was opened and read by volunteers. When possible, letters and packages were forwarded to the intended families.

Mike Ellis, the postal inspector in Oklahoma City at the time of the bombing, tells Insight: “These procedures will change post office to post office depending on the situation. There is no set policy. The Postal Service sat down with the American Red Cross, the Salvation Army and the governor’s and mayor’s offices, and it was decided the post office would deliver it if it was addressed to specific places and people and the Red Cross would take any undeliverable mail.”

“The Red Cross,” continues Ellis, “had volunteers who would open the mail, and if there were donations in the envelopes they would go into a general fund that the Red Cross had set up. The general fund was distributed to the victims at the time.” Three of four families directly affected by the bombing who spoke with Insight about the mail-delivery system acknowledged that all of the mail they received from the American Red Cross had been opened. More notable, however, is what these families reported about the surprising change in their mail deliveries after the American Red Cross took over for the Postal Service.

“The first days after the bombing,” says one family member, “people from all over the country were sending checks in lieu of flowers and we were getting a lot of checks and cash every day — hundreds, even thousands, of dollars. Then the Red Cross went down to the post office and made arrangements to collect the mail and they would deliver it to us in bulk. All the mail had been opened, and from that point on there never was a dime, even in letters that said money was enclosed.”

A member of another family recalls a similar experience: “We got this big box from the American Red Cross with more than 100 letters and each one of them had been opened. People told us that there was money in the envelopes, but we never got it. We heard that volunteers were opening the mail and putting the letters in one pile and the money in another. We complained to the Red Cross that it was mail fraud to open our mail. The letters, after all, were addressed to our family. We even went to local television stations asking them to do a piece on it, but they said it would make us look money-hungry. That wasn’t it, of course. We were upset that our mail was being opened. We were so angry we just blocked it out and moved on.”

One member of a third family recalls a large number of opened letters addressed to the family that it received from the American Red Cross but says, “We don’t think there was any suspicion that any money was removed in the mail. We didn’t see any of this.” The family did note, however, like the others, that money had been enclosed in the mail delivered to their home prior to the American Red Cross taking over distribution of the mail — but none was received afterward.

Formal complaints were lodged with the Postal Service and an investigation was conducted by Ellis, who in the process turned information over to the U.S. attorney in Oklahoma City. A grand jury needed to issue subpoenas to the Red Cross. It took testimony from a variety of individuals. Ultimately, as far as Insight has been able to learn, nothing came of the investigation. Bill Blaul, American Red Cross senior vice president for communications and marketing, tells Insight that his organization “cooperated with the U.S. attorney and he found no inappropriate handling of the matter, and it was closed.”

When asked to respond to the allegations that cash or checks may have been removed from the mail prior to its delivery to the intended parties, Blaul says: “The families may feel that way. I’m not sure what their memories and recollections are. The only motivation of the American Red Cross is to provide service to victims and families of the Oklahoma City and Sept. 11 attacks. We have no other motivation in opening individual mail.”

Insight then provided Blaul with specific instances where money apparently had been removed from envelopes clearly intended for a specific family. For instance, members of one family were so upset about what had happened to their mail that they wrote to people who had sent correspondence asking them to confirm whether a donation had been included. In one instance, a donor confirmed that $50 in cash had been sent along with the letter of condolence. The envelope delivered by the American Red Cross was addressed to the family through the Oklahoma City chapter of the American Red Cross. Despite the apparent intent of the donor to provide the enclosed money directly to the family, it did not receive it.

Asked about this specific example, Blaul becomes defensive and says, “I don’t know what more I can say about it. If mail is addressed to an individual we don’t open it,” he declares, contradicting what inspector Ellis told Insight. “I’m beginning to resent the implication that the Red Cross is opening mail and lifting money from the envelope,” Blaul insists.

Insight did not suggest anything untoward was or is going on in such cases. Rather, it followed up on questions raised by Oklahoma City families and victims who voiced concern about their mail and what they — and some donors — later learned about the handling of cash and other monetary donations. Specifically:

All of which has raised disconcerting questions in the minds of many of those interviewed by Insight concerning the hundreds of millions of dollars pouring in to the New York City, Washington and Pennsylvania funds and charities working with the families and victims. For example, how are these groups cataloging the monies received, selecting individuals for disbursements and making sure that intended recipients of direct donations are, in fact, receiving them?

In the case of New York City, according to Blaul, “Thousands of pounds of mail is coming in and the American Red Cross is working with other agencies up there. We’ve got a room set aside for the mail that is coming in and we’re sorting through it. Where there are specific categories, such as firemen, we’re taking the mail without opening it and routing it to the appropriate sources. We’re not opening mail if it is addressed to individuals. The American Red Cross is doing this in a secure room with other entities and appropriate oversight.”

Nor is Blaul able to provide Insight with the total amount of money received through this mail-review process. “I believe we are keeping track of only the money that is specifically meant for the Red Cross,” he says. He does not volunteer how much this amounts to, but published reports indicate the Red Cross thus far has received about $258 million in donations. How much other money Blaul’s organization has collected that was not “specifically meant for the Red Cross” could not be determined by press time.

How much ultimately was collected to assist the victims of the Oklahoma City bombing wasn’t available either. But, as a result of their own experiences, victim families of the Oklahoma City bombing have begun working with families touched by the Sept. 11 attacks. What advice have they for dealing with charitable organizations? “Don’t expect anything,” says one family, “and that way you won’t be disappointed.” Another family spokesman summed it up this way: “Oklahoma is doing great, but what about the New York families? I guess I’d tell them, ‘Don’t leave anything for someone else to do when it comes to your well-being.’ And I’d tell them to watch how the money is disbursed.”

Bill O'Reilly has promised that he and his staff will continue to monitor the charitable organizations that have received donations for the victims'families of the WTC. I hope he has more luck than he did with the investigation of Mr. Jessie Jackson.

NEVER, NEVER, NEVER, NEVER give any money to the Red Cross!! If you want to contribute and make sure that the money reaches its stated destination, contribute directly to the people or to The Salvation Army. I have worked for them for many years as a lay person and they are 150% conscientious about seeing that a contribution reaches its destination. They are a church after all and they know that God is watching one's every movement; plus, they are not administration heavy. Their officers if necessary do menial tasks such as cleaning the toilets in their Corps without complaint. Without a doubt, they are the most self-sacrificial organization I have ever seen.

One reason I don't donate to the Red Cross any more: during the flood of 1993, billboards in and around St. Louis requested donations and specifically stated that any and all monies collected would be used and/or dispersed locally. Although I don't recall the exact numbers, approximately $17mil was collected and $8mil used/distributed. The remaining $9mil went into the national Red Cross general disaster fund. When questioned about this, the local head had no heartburn at all about keeping the remaining funds despite the promise on the advertising or the intent of the donors. His position was that the funds would be put to good use in the event of another disaster and he was sure the donors would understand and want it that way. Sounds almost logical except nobody asked the original donors what they thought about this sudden change in plans or offered them their money back and, it it wasn't the Red Cross, there would have been prosecutions for fraud involved.

There is a story about the forest fire around Pine Junction, CO (just up from Phoenix Park) last Summer in the Gazette-Telegraph in Colorado Springs where a lot of people were also pissed off at the Red Cross. The Red Cross gave the impression that money given locally would be channeled back.

It wasn't.

All money given to the Red Cross goes to its general fund. Period.

About the only case where western civilization is as evil as we have been told. That is, western bureaucrats and politicians who lust for power, money, and influence. My dad who fought in Korea always told us not to give the Red Cross the time of day. He is a kind generous man of both his time and money. He is also always right when he rarely gives his opinion.

My dad who fought in Korea always told us not to give the Red Cross the time of day

Similarly, my grandmother remembers her family being helped by the Salvation Army when she was a refugee in Europe, so I DO donate to that group. What these charities do or don't do will come back to them.

The Red Cross won't become obsolete any time soon, though, because they hit up businesses for money, they've got entrenched fundraising networks, and most people have a positive opinion of them, so politicians and other public figures won't speak out against them.

Sorry, I'm with them. I never give blood or money to the Red Cross. My Dad had direct experience with the Greed of the Red Cross during the New London School explosion back in 1937. He used his personal (Luxury) car to ferry the Red Cross types between the Tyler, Texas airport and the disaster site, and as he was dressed like a workman, they took him to be a flunky and as they sat in the back seat, openly discussed their demands for money upfront to a local government offical before they would commit to anything. This bunch is devoted to fleecing the public and is accountible to no one.

That's right, my dad said they charged for everything during WWII and my grandfather gave them a sealed envelope to deliver to my father while my father was quarantined for TB during the end of the war and it was delivered, opened, minus 1/2 the money in it. When my grandfather complained to the Red Cross they said they took half of all the money for their operating expenses. Needless to say my family donates locally to shelters or to the Salvation Army, that's it!

People just now finding out what crooks the Red Cross are? Military men who served over seas found that out very Promply. Every disaster they chase money and put out a very small fraction of what they collect. For the past 40 years I have called them the legal thiefs.

The only thing I give to the Red Cross is blood. My parents have always told me that the Salvation Army was kind to them when they were destitute immigrants after WWII. Mom's first cup of hot coffee after the trans-Atlantic voyage came compliments of the Salvation Army. We've supported them ever since and never had cause to question their integrity.

After the October 1989 earthquake in Northern California, I told my then supervisor (a cantankerous but kindly old guy who had fought in WWII) - that I had sent a check to the Red Cross and he threw a fit! He told all of us that the Red Cross had made them pay for everything they provided to them during the War. He hated them with a passion.

My late father served in WWII. AFTER I contributed to the Red Cross for the WTC attack, my Mom told me that my Dad would never, ever donate to them. I suspect his reasons were similar to your Dad's. Damn! And here I was feeling good that I hadn't donated to United Way! (at least I knew better than to do that.) I'm glad O'Reilly is looking into this.

For what it's worth, the Red Cross won't recognize their Israeli counterparts. The Red Cross only recognizes 2 symbols, the red cross and the red crescent (arab). It will not recognize the red star of David, even though the Israeli group abides completely with the rules of the Red Cross and wants to be recognized by the International Red Cross. The International Red Cross goes along with the Arab boycott of Israel because they are afraid of losing support from the Arab donors.

My family has had an almost 60 year tradition of contributing to the Salvation Army rather than the Red Cross because of experiences my Mother's brothers had when they were serving in the Armed Forces during WWII. Packages from the Red Cross always had strings attached to them; packages from the Salvation Army came free and with no red tape. Tradition dies hard--and our gratefulness to the Salvation Army lives on.

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