Red Cross faces questions about Sept. 11 fund raising
By Jonathan D. Salant
Associated Press
WASHINGTON — The Better Business Bureau, acting on complaints from donors to the American Red Cross and critical reports about post-Sept. 11 fund raising, has asked the group for information to help determine whether it still meets bureau standards for charities.
Associated Press
"Certainly, the information we're asking for is out of the routine," H. Art Taylor, president and chief executive officer of the bureau's Wise Giving Alliance, said in an interview Saturday.
The Red Cross raised $850 million for its Liberty Fund. After initially saying it would use some money for projects not directly related to Sept. 11, the organization in November reversed course and said the entire fund would help those affected by the attacks. The issue played a part in Bernadine Healy's decision to resign as Red Cross director.
"We want to make sure that the public can be confident in what's going on at the Red Cross."
Red Cross officials said yesterday they would provide a response, but none was offered by late afternoon.
The alliance made the request last month for information about the $850 million donated for its terrorist relief fund. The Red Cross was criticized for initially saying it would use some money for projects unrelated to the attacks.
Taylor said his organization decided to investigate one of the nation's largest and most respected charities after hearing from several givers.
"We've been getting a lot of complaints from donors that their intentions haven't been honored," Taylor said. "We need to do an evaluation to determine if the Red Cross activities match donor intention."
It is the first time the bureau has questioned the Red Cross, although the bureau has sent similar letters to other charities, said Bennett Weiner, chief operating officer of the alliance, a merger of the National Charities Information Bureau and the BBB's Philanthropic Advisory Service.
In an attempt to help donors decide if an organization is reputable, the alliance rates national charities by 23 standards. They include spending at least 50 percent of donations on the activities promoted when raising money, and clearly specifying which programs and activities the contributions will pay for.
The reports are posted on the group's Web site, www.give.org. The Red Cross entry at that site now says the bureau is seeking more information "to complete a more current report."
The Red Cross raised $850 million for its Liberty Fund. After initially saying it would use some money for projects not directly related to Sept. 11, the organization in November reversed course and said the entire fund would help those affected by the attacks. The issue played a part in Bernadine Healy's decision to resign as Red Cross director.
The charity said last month that it planned to give away 90 percent of the money by Sept. 11 of this year.
The Red Cross has already spent $490 million on aid to victims' families, on aid to people who lost their jobs or homes because of the attacks, and on disaster relief services.
Former Senate Majority Leader George Mitchell was named in December to oversee a plan to hand out the rest of the money.
