FEMA to Reimburse Red Cross

While looking for something else I came across a story that said that FEMA would reimburse the American Red Cross $100 million dollars that the Red Cross spent to put victims of Hurricane Katrina up in hotel rooms. I also found articles about the Red Cross applying for reimbursement for expenses for medical care that it provided in shelters because this was a duty normally handled by public health agencies. The Red Cross is considered a first responder, the same as fire and police departments by the Federal Government. The Red Cross itself admits that long term aid and rebuilding are not part of it’s mission. Yet it is estimated that over 75% of donations will go to the Red Cross. My questions are simple. What does the Red Cross do with our donations? Is the Red Cross a true non-profit organization? Could the money donated to the Red Cross do more good if it was donated to other groups?

This is not the first time that the Red Cross has been criticized about what it does with donations. In the aftermath of 9-11 the organization stated that they would withhold some of the donations for what they called “long term effects from 9-11” and that they would use some to upgrade their computer and communications systems. The public outcry from this led to the resignation of the organization’s president and CEO.

Richard Walden of the LA Times wrote this about the Red Cross.
“The Red Cross expects to raise more than $2 billion before Hurricane Katrina-related giving subsides. If it takes care of 300,000 people, that's $7,000 per victim. I doubt each victim under Red Cross care will see more than a doughnut, an interview with a social worker and a short-term voucher for a cheap motel, with a few miscellaneous items such as clothes and cooking pots thrown in.”

The State of Alabama is requesting that the Federal Government allow it to be the operator of shelters in the state instead of the Red Cross.

When the Attorney General of New York asked the Red Cross for documentation of 9-11 expenditures he was told that the Red Cross was Federally chartered and not answerable to state government.

I have seen FEMA hauled over the coals over it’s response to Hurricane Katrina, maybe it is time to invite the Red Cross to the barbeque as well.

Hotel Reimbursement

Medical Expenses

The Red Cross Money Pit

Red Cross Response


Alabama Seeks Responsibility for Shelters


Red Cross Double Cross

Red Cross Double Cross