Red Cross: $550m won’t used for victims

Union Leader ^ | October 30, 2001 | Staff and Wire Reports

[2Trievers]

The American Red Cross yesterday acknowledged that some of the $550 million in donations to a special fund established for the victims of the Sept. 11 terrorist attacks will be used for other broad-based needs instead.

“It takes a lot of money to do a lot of work. We believe very much that we are honoring donor intent,” Red Cross spokesman Mitch Hibbs said. “Yes, we are helping the families, but we’re also helping everyone else.”

Soon after the attacks, the Red Cross took the unusual step of creating a special account, the Liberty Fund, that was designated for terrorism relief efforts.

But a portion of that money will go to broad-based activities such as a blood reserve program, a national outreach effort, and a telecommunications upgrade.

In any disaster relief operation, a portion of the money raised goes toward the entire cost of the operation, not just victim relief, said Steve Monier, director of emergency services for the Greater Manchester chapter of the Red Cross.

“What we’re doing in terms of disaster relief is not new. What’s different here is the sheer magnitude of it,” Monier said.

The nine Red Cross chapters in New Hampshire have raised approximately $1.5 million for the Liberty Fund, Monier said.

That includes $1 million raised in a telethon hosted by WMUR-TV and two banks, he said.

Philanthropic watchdogs, while careful to note the Red Cross meets high standards overall, said the group has not clearly publicized its distribution plans for the Liberty Fund. They also questioned the need for a separate collection effort in the first place.

“I wish they hadn’t set up that separate fund,” said Daniel Borochoff, president of the American Institute of Philanthropy, a watchdog group based in Bethesda, Md. By doing so, Borochoff said, the Red Cross may have created unrealistic expectations that all donations would go directly to victims of the Sept. 11 attacks.

“We’ve begun to receive inquiries from the public raising questions about the distributions of 9-11 funds,” said Bennett Weiner, a spokesman for the Better Business Bureau Wise Giving Alliance, in Arlington, Va. “I think the public certainly expects the 9-11 relief organizations to follow through” by helping the victims of the attacks.

Donations to the Red Cross typically go into its Disaster Relief Fund, a general account designed to meet emergencies of all types. But soon after the Sept. 11 attacks, Red Cross President Bernadine Healy created the Liberty Fund as a special account targeted for victims of the attacks.

Disputes between Healy and members of the Red Cross board of directors over creation of the account and the uses of the money were among the issues that led to her resignation on Friday. In announcing her resignation, she disputed a statement by Red Cross Chairman David McLaughlin that the board did not force her out of her job.

“I strongly oppose commingling of the monies with any other Red Cross disaster funds. Reasonable people can differ,” Healy said last week.

Borochoff said the Red Cross still receives an “A” rating from his group but needs to be more specific with plans for the money it has raised since the tragedy, rather than appearing to use the crisis “as a way to get money for more general purposes.”

Fundraising for the Liberty Fund has been so successful that the Red Cross expects to close out the effort, though no date has been set.

Of the $550 million pledged so far, Hibbs said, the Red Cross expects to spend more than $300 million over the next several months on disaster relief related to the attacks.

In particular, $100 million has been set aside for its Family Gift program, which provides victims’ families with money to help cover immediate expenses.

Average gifts were $18,500; the maximum allowed is $30,000.

Another $100 million will go to disaster relief services in New York City, Washington, Pennsylvania and other sites. That includes meals, shelter, counseling, child-care and relocation assistance.

Other spending decisions have raised some questions.

The Liberty Fund will be tapped for $50 million for a blood readiness and reserve program that would increase the group’s blood inventory from two or three days to 10 days, and $26 million in nationwide community outreach.

Hibbs said an additional $29 million would be spent on relief infrastructure, including telecommunications, information systems, database management, contribution processing and other overhead costs.

The latest available figures — for Oct. 19 — show that $356 million has actually been collected for the Liberty Fund so far and $121.3 million spent.

[Samwise]

My dad says that when he returned to the states from WWII, he was greeted by the Red Cross, who fed him, gave him coffee, and generally treated him well. They did what you'd expect them to do for returning heroes who'd just beaten the Nazis. A few weeks later he received an outrageous bill from them for services rendered. He couldn't believe it. I was not allowed to donate to the Red Cross at school when I was a kid. They had big drives to raise money. They gave the kids a little pin. I was so embarassed because I didn't have a pin. Sometimes my mom would sneak a few cents to me, so I could give and not be embarassed. However, I thought the modern Red Cross was different. Wrong again.

[gl_mark]

On the local radio this morning, AM 1500 KSTP, there were several callers who had experience the Red Cross's help.

They all ended the story the same way, "Then I got a bill for the help."

Whether it was having to buy a coffee and stale donut while filling sand bags to hold back the Red River or a military emergency flight home all recalled how they received a bill for the Red Cross service.

Is that other's experience?

[BlueLancer]

"And in the meantime, I will never give money to the RC again."

Give to the Salvation Army. After looking at overhead costs and money actually used for charity, the Red Cross and United Way are pure losers.

For those of you who don't want to give to an overt religious charity, take it from me: I am not a Christian and I am very satisfied with the knowledge that the money that I give is being used in the same manner as I would put it to us if I were in charge of its distribution.

[FreePaul]

I lost all respect for the Red Cross in 1947 when I saw them in action during the Texas City disaster. Red Cross was selling services, Salvation Army was giving away anything they had.

[facedown]

ping

[jackbill]

Is there a charitable organization that can be trusted to use the money as it was intended?

Tha Salvation Army. They were first on the ground in both NY and DC feeding the workers. They were also the first allowed to do grief counseling.

You will never hear Big Media talk about this, or compare them with the Red Cross and other big charities. Why? Because they are a "religious" organization - one which Big Media probably figures is "fundamentalist".

BTW, they get my money.

[nightdriver]

I have always been suspicious of the Red Cross. My mother told me of one of their campaigns during World War ONE where they pleaded with all citizens to donate warm clothes for the Red Cross to distribute to the shivering soldiers in Europe. The returning soldiers reported that this donated clothing acquired a very high price by the time it got on display in the Red Cross dispensaries. Most soldiers could not afford it.

The Red Cross may be "non-profit," but they certainly are crafty.

[Daus]

I knew the United Way would pull this but I had better expectations for the Red Cross.

This is nothing short of fraud.

[ZULU]

They should change their emblem from a red cross to a skull and crossbones.

[Ciexyz]

I donated to the Salvation Army's disaster fund. I'm confident that they'll use my contribution for legitimate purposes.

[texgal]

My uncle was in the Navy during WWII - pacific theatre and said that he would NEVER, EVER give one dime to the Red Cross. Seems that they would come around after the men had been involved in combat and offer coffee and donuts. The Red Cross people would ask their names and other information and later the men would find out that their pay checks had been docked for the coffee and donuts. He hated the Red Cross.

[writmeister]

I won't donate to the Salvation Army either. The last time I gave, I did not even receive any response (except more solicitations).

I know they are a favorite of many FRs, but IMHO they are not much better than the Red Cross (who responded to my father's donation with a pamphlet on estate giving).

[2Trievers]

Wouldn't it be sweet if Mark Levin and Landmark Legal took up this cause and exposed the RC for what it is, a fraud?

[sit-rep]

You won't ever see me in a line again that is for sure.

SR

[Amore]

Thanks. I gave to the Red Cross last month, but after this, I'm with you!

[Saundra Duffy]

This is really bad. For victory & freedom!!!

[ladyinred]

This does not surprise me a bit. The Red Cross is not what some people feel it is, and a lot of the monies it collects fall into hands the donors never intended. Same way with the United Way. They should be ashamed, but they are not.

[chainsaw]

Give to the Salvation Army. $550,000,000 would have gone for help for the victims of the WTO disaster, not Red Cross 6 figure salaries.