Tuesday, September 27, 2005

1546 The Red Cross money pit

The Los Angeles times has an editorial questioning the 70% of all the relief money for the hurricanes that the Red Cross has received.

"This skewed giving to Red Cross would be justified if the organization had to pay the cost of the 300,000 people it has sheltered. But FEMA and the affected states are reimbursing the Red Cross under preexisting contracts for emergency shelter and other disaster services. The existence of these contracts is no secret to anyone but the American public. The Red Cross carefully says it functions only by the grace of the American people — but "people" includes government, national and local. What we've now come to expect from a major disaster is a Red Cross media blitz."

"The Red Cross expects to raise more than $2 billion before Hurricane Katrina-related giving subsides. If it takes care of 300,000 people, that's $7,000 per victim. I doubt each victim under Red Cross care will see more than a doughnut, an interview with a social worker and a short-term voucher for a cheap motel, with a few miscellaneous items such as clothes and cooking pots thrown in.

The Red Cross' 3 million unpaid volunteers, 156,000 of whom it says are deployed in Hurricane Katrina, are salt-of-the-Earth Americans. But asking where all the privately collected money will go and how much Red Cross is billing FEMA and the affected states is a legitimate question — even if posed by the president of a small relief agency."

My donations haven't gone to the Red Cross, but if yours have, you may want to read the entire article and do your own research on where your money will do the most good.

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