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May 16, 2008

Red Cross Makes Rare Request for Federal Money

The American Red Cross, facing a $200-million deficit, requested $7-million in federal support to help it pay for the employees it needs to respond to disasters, reports The New York Times.

The group — which normally relies on private donations, not federal money — made its request at a Congressional hearing on Thursday.

The Red Cross, under the National Response Framework, must have an employee at the 10 regional offices of the Federal Emergency Management Agency. “While these positions bring value to the community’s response, they were not sustainable under our current budget guidance,” said Joseph Becker, Red Cross senior vice president for disaster services, in written testimony for the hearing.

The organization is laying off 1,000 people at its Washington, D.C., headquarters, which constitutes about one-third of the staff members there. It is also reducing staff sizes elsewhere.

The Red Cross attributed its current financial difficulties to a lack of recent major disasters, which spur financial support from donors. While the group has accepted federal money before, this is the first time it has requested money dedicated for a federally mandated task.

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Friday May 16, 2008 | Permalink

Comments

1. As a fundraiser for a local chapter of the Red Cross, I spend a great deal of effort convincing our donors that we are NOT government funded and therefore need their support. <sigh>

   — A.Y.    May 20, 08:30 AM    #

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