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American Red Cross Articles NewsMax.com

Red Cross Diverts Donations From Sept. 11 Victims Kevin Curran, NewsMax.com Wednesday, Oct. 31, 2001

Americans who gave to the Red Cross to help the victims of the Sept. 11 terrorist attacks will be shocked to learn that much of their money is being diverted. Donations by the millions have poured into charities set up to either help everyone affected or targeted specific groups of victims, such as firefighters or families of those killed aboard the plane that crashed in Pennsylvania. No charitable organization took a larger role than the American Red Cross. Volunteers from counselors to canteen workers descended on the three crime scenes. Local chapter personnel across the country set up their own counseling programs and started massive blood drives. Of course, all of this costs a lot of money. In an unusual move, the Red Cross headquarters in Washington established the "Liberty Fund" to gather and hold all the Sept. 11 donations. In the past, such donations would have been placed in the charity’s disaster relief fund. "I strongly oppose the co-mingling of the moneys with any other Red Cross funds," said American Red Cross President Bernadine Healy. The Red Cross collected money from corporations, cans at stores, contributions through bank branches and children who poured lemonade or washed cars. As of Monday, the Liberty Fund had pledges of $547 million and as of Friday had collected $433 million. Disputes between Healy and the Red Cross board of directors over the use of those funds led to her resignation last week. The main point of contention: using the donations for purposes other than direct aid to rescuers and victims. In her resignation speech, Healy said: "The Liberty Fund represents a broader mission … we must be ready to help the suffering of yesterday and those of tomorrow. We must be there to help every community mourn and prepare …. Our Liberty Fund is a war fund." Where Has All the Money Gone? It seems less than half of the money collected will be going to relief efforts or victims: $100 million of the fund is being spent on direct disaster relief such as providing for 40,000 Red Cross workers and volunteers, sheltering stranded travelers and feeding rescue workers. $100 million is allocated to the Family Gift Program, providing cash to affected families. $11 million will be used to help families of victims from overseas with travel expenses, legal difficulties and funeral costs. $4 million is budgeted for services to active-duty military members as well as National Guard and reserve troops for counseling and financial assistance. Other uses of the money appear to have little to do with people directly affected by the Sept. 11 attacks, such as: $50 million to establish a strategic blood reserve. Up to $26 million for "community outreach." $29 million for indirect relief costs, such as telecommunications and accounting. O'Reilly: 'Charge Them With Fraud' Fox News Channel star Bill O'Reilly on Tuesday night accused the Red Cross of deception and fraud and expressed outrage at the millions being spent on "community outreach." "This is an outrage! They should be charged with fraud!" he thundered, calling for a government investigation. "People don't know any better. They were snookered here." The organization refused to have a representative appear on the program. Red Cross spokeswoman Dana Allen has admitted Liberty Fund donations would be used to prepare for other attacks. "We also need to make sure we’re ready to help as the nation engages in military action, and as we respond to more terrorist threats." The diversion of money for future needs or purposes other than direct aid will come as a surprise to some donors. "We have been so straightforward in saying what we are using the money for," Healy told BusinessWeek. "The disaster relief involves this entire country, and its readiness for future terrorist events, for healing, for grieving." That explanation doesn’t sit well with Stacy Palmer, editor at the Chronicle of Philanthropy. "One of the biggest mistakes the American Red Cross made was they didn’t move fast enough to say what they’re going to do with all the money," Palmer told the Los Angeles Times. "And so far, there aren’t a lot of explanations coming that the average person who donated money is going to be happy about." "There is no way for everyone who calls to get a one-on-one explanation of the Liberty Fund," said Red Cross spokesman Mitch Hibbs. He did admit it took the Red Cross almost a month after the disaster to post an explanation of the fund on its Web site for general donors to see. He said corporate donors and those who met with local chapter officials, who pledged $455 million, were told about the charity’s plans in personal meetings. 'False Advertising' But a Web site posting of details is not sufficient when television ads featuring well-known actors and showing pictures of Ground Zero urge people to call. "The question is one of false advertising," said Palmer. "If you’re a careful donor, you know to read between the lines. But how much did most donors think in this case? Not a lot." Red Cross officials defend the uses of non-disaster relief funds as preparations for future events. Spokeswoman Kelly Alexander said the national blood bank would prevent the need for seasonal calls for donors when supplies are low and have a ready inventory of blood products when emergency needs arise. The community outreach funds will be spread among all of the more than 1,000 Red Cross chapters nationwide. Spokesman Mitch Hibbs said the organization was establishing a way for professional counselors to be available at every chapter. The organization is also modifying its outreach to school students called "Masters of Disasters," which teaches emergency preparedness. Teachers can now obtain a brochure online discussing terrorism, Hibbs said. For business owners, the Red Cross has altered its seminars on disaster preparations. How P.C. Healy said the outreach program was designed to encourage tolerance. The fundamental principles of the Red Cross include a stand against prejudice. Hibbs said the Red Cross wanted to get out the message that "hatred is a bad thing." In the aftermath of the attacks, Red Cross spokeswoman Leslie Van Sant said, chapter officials have been reaching out to Arab-Americans to explain how the Red Cross operates under seven principles: humanity, impartiality, neutrality, independence, voluntary service, unity and universality. They are reminded how these principles "really come into play," as the Red Cross provides aid to anyone based on need. Van Sant said this type of outreach happened all the time and did not represent additional costs to be paid out of the Liberty Fund. Has the Red Cross collected enough money to meet its needs? David McLaughlin, the chairman of the charity’s board of directors, may be thinking of closing the books. He told the Washington Post, "I think we should not sustain the collection effort beyond what’s in the pipeline." While all donations to the Red Cross since Sept. 11 have been placed in the Liberty Fund, that will change today. Donors can now designate whether their money goes into the Liberty Fund or the general disaster relief fund. Contact members of Congress to let your voice be heard on this issue with a URGENT PriorityGram! All Rights Reserved © NewsMax.com

 

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