THE AMERICAN RED CROSS: It took a public outcry to make the Red Cross funnel all the money it collected for 9/11 to those victims. But Mike Wallace finds out that wasnt the first time the venerable charity has come under fire for how it spends donations raised after a major disaster.
A classic, 60 minutes full-scale attack.
Withering, scathing, no-holds-barred report that showed the Southern California Chapter of the American Red Cross had solicited funds using the photophaphs and names of local disaster victims... with NO intention What-So-Ever of letting any of those victims have One Dime of the funds.
The local chapter president gets $300,000 per year.
$100,000 of which is BONUS for operating in the black.
That means Not Spending or disbursing solicited funds.
Red Cross basically did not respond.
On Sunday, March 10, the CBS News show 60 Minutes ran a ... story about the American Red Cross.
The 60 Minutes segment focused on 3 problems (San Diego, Loma Prieta and Red River)
[San Diego is where the Alpine and Viejas fires occurred in January 2001
Loma Prieta is the location of the San Francisco earthquake around 1990.
I don't remember what disaster happened at Red River.
60 Minutes did not report other examples of the ARC's problems, but others probably existed.]
National Red Cross is audited annually by ... KPMG.
When donors designate, their intentions are always honored.
[But, most donors don't.]
60 Minutes reported that the San Diego chapter has not provided a financial report to Supervisor Jacob and the fire victims. ...
$242,021 has been spent on immediate disaster relief and in direct support of the families affected by the fire of the $343,000 designated by donors for the Alpine/Viejas fires, more than two-thirds of the donations. [what about the other 1/3? and what about all the undirected money collected using this disaster?]
60 Minutes reported that the national audit of San Diego found that the chapter had misspent $112,000. .... National Red Cross and the chapter agreed that indirect costs associated with the Alpine Fire, such things as the cost of telephones to service this disaster, would not be counted
[I think 60 Minutes mentioned the spending of donations on phone service and chapter expansion.]