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501(c)Files | Nonprofit News

A White Flag for the Red Cross

by Tom Durso on June 23rd, 2008

You knew this one was coming, right?

Stretched thin by scandal, under new leadership, and hurting for funding during the economic downturn, the American Red Cross can’t keep up with need in the flood-ravaged Midwest.

The agency said its domestic Disaster Relief Fund had been wiped out by flood relief expenses that had reached $15 million by Monday. With a balance of zero in the fund, the Red Cross will now seek loans to support its 2,500 staff workers and volunteers on the ground in Wisconsin, Iowa, Illinois and Missouri, the officials said.

The Red Cross has done a nice job raising money when Americans could see the effects of the disasters that funding seeks to counterbalance. But it has done a poor job in the intervening periods, and as a result, it has no funds at a time when they’re most needed. How much, one has to wonder, has the organization’s leadership failures contributed to this awful situation? | 501(c)

Hat tip to the Nonprofit Law Prof Blog.

POSTED IN: Fundraising, Leadership

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