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09/29/2005:

"Red Cross Criticized, Urged to Share Cash"

NEW YORK - As its hurricane relief donations near the $1 billion mark, more than double all other charities combined, the American Red Cross is encountering sharp criticism of its efforts and mounting pressure to share funds with smaller groups.

The complaints — that Red Cross operations were chaotic in some places, inequitable in others — have stung deeply within an organization that is proud of its overall response to Hurricane Katrina, by far the most devastating natural disaster it has confronted on U.S. soil.

"It's frustrating to our thousands of volunteers out there every day, away from their families, helping people," said spokeswoman Devorah Goldburg. "We never said we were perfect — we're trying to do our best under extraordinary circumstances."

The frustration stems partly from the fact that the Red Cross has worked to avoid a recurrence of the humbling fundraising controversy that flared after the terrorist attacks of Sept. 11, 2001.

Back then, the Red Cross raised about $1.1 billion — its record so far for a single disaster — but the organization was assailed when donors belatedly learned that $200 million of their gifts were being earmarked to prepare for future crises rather than to help victims. Red Cross president Bernadine Healy resigned, the money was shifted back to the Sept. 11 Liberty Fund, and the organization promised greater accountability in future fundraising campaigns.
news.yahoo.com