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Steve Pope
Mary Gillespie uses a walker as she walks back into the Red Cross shelter after having a
cigarette, Friday June 13, 2008 in Cedar Rapids, Iowa. (AP)
Mary Gillespie uses a walker as she walks back into the Red Cross shelter after having a
cigarette, Friday June 13, 2008 in Cedar Rapids, Iowa. (AP)
Red Cross Runs Low on Disaster Relief Funds
Shrinking donations, scandals and Midwestern floods have stretched the American Red Cross’s financial resources too thin.
30-Second Summary
The American Red Cross, an organization that’s helped countless disaster victims around the United States, is in need of a little help itself.
Since April 2008, the organization has handled more than 30 disaster operations, and currently has thousands of workers helping flood victims in the U.S. Midwest. In this busy time, some of its financial resources have been tapped out.
“The disaster relief fund today is completely depleted. The balance is zero,” warned Jeffrey Towers, chief development officer for the Red Cross. Already, the Red Cross has spent $15 million on the Midwest floods, but raised just $3.2 million in return.
“That’s putting this in the category of a very significant disaster for the Red Cross, historically, when you would look at what we spend on relief efforts,” said Joe Becker, senior vice president of Red Cross disaster services.
Economic struggles have dampened individual willingness to donate to the organization. Also troubling the Red Cross are its string of personnel problems and its handling of past disasters like Hurricane Katrina.
For now, President Bush said he would encourage emergency legislation from Congress to allocate funds to the Midwest; but because that takes time, the Red Cross will be the primary source of money. The group reported that it will need to seek out loans to continue with its efforts.
“That’s not a position we want to be in,” stated Towers. “It’s obviously not sustainable.”
Since April 2008, the organization has handled more than 30 disaster operations, and currently has thousands of workers helping flood victims in the U.S. Midwest. In this busy time, some of its financial resources have been tapped out.
“The disaster relief fund today is completely depleted. The balance is zero,” warned Jeffrey Towers, chief development officer for the Red Cross. Already, the Red Cross has spent $15 million on the Midwest floods, but raised just $3.2 million in return.
“That’s putting this in the category of a very significant disaster for the Red Cross, historically, when you would look at what we spend on relief efforts,” said Joe Becker, senior vice president of Red Cross disaster services.
Economic struggles have dampened individual willingness to donate to the organization. Also troubling the Red Cross are its string of personnel problems and its handling of past disasters like Hurricane Katrina.
For now, President Bush said he would encourage emergency legislation from Congress to allocate funds to the Midwest; but because that takes time, the Red Cross will be the primary source of money. The group reported that it will need to seek out loans to continue with its efforts.
“That’s not a position we want to be in,” stated Towers. “It’s obviously not sustainable.”
Headline Link: Busy months for the Red Cross
The floods in the American Midwest are the largest the Red Cross has handled in nearly 15 years. In a typical relief effort, the Red Cross may offer food, shelter and mental health counseling to those in need. The group also provides almost half of the nation’s blood supply.
Source: Red Cross
Background: Red Cross struggles
Internal problems
Personnel issues have plagued the American Red Cross in recent months. The group laid off approximately 1,000 people to help relieve a $200 million budget deficit, and fired its president for having an affair with a director in Mississippi. Gail McGovern is the agency’s sixth president in as many years.
Source: MSNBC
Sagging economy
The U.S. economy in 2008 has not fit the textbook definition of a ‘recession,’ but most economists say the country is in the midst of a slump.
Source: findingDulcinea
‘Donor fatigue’
Many Americans are donating less money to relief for recent high-profile disasters than they have for past events, possibly due to a phenomenon charities call “donor fatigue.” “Hearing about too many disasters makes some people not give at all, when they would have if it had been just one disaster,” says Michal Ann Strahilevitz of Golden Gate University, who specializes in charitable issues.
Source: findingDulcinea
Related Topics: Midwest flooding; Hurricane Katrina loan
Midwest flooding
The floodwaters in Iowa and across the Midwest are beginning to recede, but the repercussions of the flooding will be substantial. Recent events have demonstrated that levees and bridges across the United States are not prepared to withstand an increased occurrence of flooding and natural disasters.
Source: findingDulcinea
Hurricane Katrina loan
Hurricane Katrina marked the first time the American Red Cross needed a loan to help with disaster relief. The group borrowed approximately $430 million to pay its costs, and repaid the debt with $2.1 billion it raised in the months that followed. Although Congress has chartered the Red Cross to pay for disaster relief, it runs primarily on private donations.
Source: Washington Post
Historical Context: Clara Barton and the American Red Cross
The American Red Cross was founded by Clara Barton, who gained inspiration for the program by participating in relief work in Europe and becoming acquainted with the International Red Cross there.
Source: National Women’s Hall of Fame
Reference: Donate to the Red Cross
The Red Cross responds to both national and international disasters. Learn how to contribute to the organization’s efforts at its Web site.
Source: Red Cross
For a closer look at the organization’s current activities, read the Red Cross Chat.
Source: Red Cross Chat
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