The Chronicle, 11/14/2001: Red Cross Promises to Spend All Donations to Help Victims of Terrorist Attacks

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November 14, 2001

Red Cross Promises to Spend All Donations to Help Victims of Terrorist Attacks

By Elizabeth Schwinn

The American Red Cross said Wednesday that it will spend all of the donations it has received for the September terrorist attacks solely on the victims of those attacks. The move marked a departure from its previous plan to use some of the money to strengthen its own operations in anticipation of future terrorist threats.

Officials said they hope the decision will restore public trust in the charity, which has faltered in recent weeks amid criticisms that the relief agency was not honoring the intentions of the donors who pledged a total $560-million after the attacks.

"The people of this country have given the Red Cross their hard-earned dollars, their trust, and very clear direction for our September 11 relief efforts," said David T. McLaughlin, chairman of the charity's board of directors. "With this action, we hope to restore the faith of our donors and the trust of the American public and, most importantly, to devote 100 percent of our energy and resources to helping the victims of the terrorist attacks."

All of the $543-million the Red Cross has collected in its Liberty Disaster Fund will be spent on aid for families of victims, rescue workers, and those who have lost their homes or jobs as a result of the attacks, said Harold Decker, the Red Cross's interim chief executive. Mr. Decker was named to his post October 30 by the Red Cross Board of Governors after the charity accepted the resignation of Bernadine P. Healy as its chief executive.

The relief agency has spent about $137-million of the money so far, and expects to have spent $275-million by the end of the year, he said. It will extend its emergency aid for families of victims to one year, up from its previous plan to provide such aid for three months. The Red Cross will announce in January how it plans to spend the rest of the funds, Mr. Decker said.

Criticism of the Red Cross swelled after Dr. Healy announced that the charity planned to spend $264-million of the Liberty Fund on items such as improvements to its blood-collection operations. At an acrimonious congressional hearing last week, lawmakers criticized the Red Cross for not spending all of the money on victims, and New York's attorney general threatened to take legal action against the charity if it didn't spend contributions in a way that matched the intent of the donors.

The Red Cross still plans to improve its blood-collection operations, distribute brochures with information on anthrax, and provide mental-health counseling for children nationwide related to the September 11 attacks, said Mr. Decker. But he said the charity will seek new donations to pay for those efforts rather than drawing money from the Liberty Fund.

To read the Red Cross's announcement about its change in plans, go to: http://www.redcross.org/news/ds/0109wtc/011114liberty.html

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