About time, given the press they have received for usurping the funds for other purposes.

http://library.northernlight.com/ED20011030680000015.html?cb=0&dx=2006&sc=0#doc

Red Cross Halts Sept. 11 Fund Appeals

Story Filed: Tuesday, October 30, 2001 5:53 PM EST

WASHINGTON (AP) -- The American Red Cross is halting its appeals for donations to a fund created to help victims of the Sept. 11 terrorist attacks, its interim chief executive said Tuesday.

The Liberty Fund held $547 million in pledges as of Monday.

Contributions received after Wednesday will be deposited in the charity's Disaster Relief Fund, a general account servicing all kinds of emergencies, unless donors specify the money is for the Liberty Fund, said Harold Decker, the organization's interim chief executive officer.

Liberty Fund money also will continue to be held separately from other funds, Decker said, and will be spent on aid to victims' families and other relief efforts arising from the attacks.

``That is the way the fund was set up. That is what donors expect,'' he told reporters.

During a weekend meeting of the Red Cross' governing board, Decker was chosen to succeed Bernadine Healy, who resigned Friday, until a committee finds a permanent replacement.

In her resignation, Healy cited differences with the board, including her decision to keep those Liberty Fund dollars separate from the organization's main relief fund.

Decker said charitable groups that are raising money to help those affected by the terrorist attacks should read nothing into the American Red Cross' decision to close the Liberty Fund.

``We're not trying to send signals to other people,'' he said.

Another factor in the decision is that fund raising for the Liberty Fund apparently has contributed to a drop in its Disaster Relief Fund, which held $26 million as of Sept. 30, said chief financial officer Jack Campbell. The fund's target is about $57 million, he said.

Decker said it was recognized from the beginning that the Liberty Fund was created for a specific event and would eventually be closed.

He said the decision shouldn't hamper future fund raising.

``If we need to come up with support and relief for our fellow citizens in another time, in another place, in another manner, the American Red Cross will do it,'' Decker said.

As for criticism of the handling of the Liberty Fund and Healy's abrupt departure from the nation's largest charity at such a critical time, Decker said the ``American people understand the Red Cross is doing its very best under very difficult circumstances.''

``This is not a one-person operation and the Red Cross will go forward,'' he said.

Since the Sept. 11 attacks, which killed more than 4,800 people in New York and Washington and touched thousands more, the Red Cross has spent more than $140 million on related disaster relief.

Of that amount, nearly $44 million has been distributed to more than 2,200 affected families to help cover housing, child care, food and other expenses for about three months.

About $67 million was spent on immediate disaster relief needs, such as onsite food, shelter and other support for rescue workers and victims' families.

More than $11.5 million has been spent on blood donor programs, $14.7 million on nationwide community outreach and $2.5 million on indirect support costs, such as fuel for emergency response vehicles and maintaining a toll-free information hot line.

The Red Cross expects to spend about $300 million over the next year on these efforts. The remaining funds, more than $200 million, will be held in trust to help victims in future years.

The charity also is contacting victims of anthrax sent through the mail and has given money to the families of a tabloid photo editor in Florida and two Washington postal workers who died after being infected with the bacteria, Campbell said.

Decker, 56, joined the Red Cross as deputy general counsel in February after a 21-year career with drug maker Pharmacia Corp. He became Red Cross general counsel in September.

At its weekend meeting, the Red Cross board also affirmed support for full membership for its Israeli equivalent in the global Red Cross network and for withholding administrative dues from the International Federation of Red Cross and Red Crescent Societies.

Healy, who is to continue as president until Dec. 31, cited differences over this issue in her resignation.

The American Red Cross also has hired accounting firm KPMG to audit the Liberty Fund. The findings will be released publicly once the audit is completed, Decker said.

-- Anonymous, October 30, 2001

Answers

Of the Liberty Funds, the Red Cross also spent $14.7 million on nationwide community outreach. Does that mean making those commercials and creating print advertising to solicit more money? If they had handled this thing properly from the beginning, appearances on all the talk and news shows would have raised just as much money without the "outreach." But maybe it's ot as much work to make one commercial shown all over than it is to do the rounds of the talk shows.

I notice RC is sending money to the anthrax victims too. Bet they wouldn't have without all this adverse publicity.

-- Anonymous, October 30, 2001

Boy oh boy! O'Reilly is absolutely furious about the Red Cross breakdown of its spending, especially since his guest, who's written a book on charities, told him that some of that "community outreach" went for "education" and what sounds like touchy-feely sensitivity training. O'Reilly wants the Red Cross charged with fraud. This show will be repeated at 11, I think it is. Also, tomorrow night, he's going to talk about all the Hollywood celebs begging for money for the Red Cross. There will be follow-up programs PDQ.

His point is that people are generous enough that if the Red Cross asked for money for phone bills, they would give it--the RC doesn't need to be taking phone bill and computer money from the attack fund. He also wants to know why so mmuch was spent on blood collection that wasn't needed--and was known not to be needed within a couple of days of hte attack.

-- Anonymous, October 30, 2001

O'Reily has made a good point and I hope the Red Cross does get charged with fraud. People gave money for those people who lost loved ones not to pay for Hollywood Big Wigs to do a commercial to generate More money! The Red Cross played on peoples soft heart for a Horrible event in our country and they are Not living up to the Expectations of those Donating the money.(There recent statement says they are..Right!" Everyone who had donated Money should file a complaint on fraud. Better yet, call up the damn Red Cross and insist that the money go directly to the victims families and if it is not Demand your money be returned! If they refuse then call The Better Business Bureau.. It's your money! My feeling is the people who gave the money all should call everyone they can with a complaint..And Keep it up Bill.. "The Squeaky Wheel gets the Grease!" A proud Squawker.

-- Anonymous, October 30, 2001

We're in the middle of our annual United Way campaign at work. I've pissed off the employee campaign reps by telling them I don't think it would be responsible of me to give money this year to U.W., given the way that its sister organization (U.W. of NYC) managed its money either.

-- Anonymous, October 30, 2001