http://philanthropy.com/free/update/2001/11/2001111401.htm
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