Tuesday, July 21, 2015

American Red Cross May Not Know How It Spent Its Donations

by Gary Snyder


 On the heels of a report to Sen. Charles Grassley about how the American Red Cross spent it money as a result of the Haiti Earthquake in 2010, internal documents newly obtained by ProPublica and NPR call into question whether the Red Cross itself has an accurate accounting of how money was spent.

The report concluded that the Red Cross’ figures on the number of people helped in a hygiene promotion project were “fairly meaningless.” 

The reports, assessments from 2012 of some of the group’s health and water projects, conclude that the charity failed to properly track its own spending, oversee projects, or even know whether or not they were successful.

 As ProPublica detailed in an earlier story, the Red Cross took much of the nearly $500 million donated for Haiti and passed it on to other aid groups, keeping a portion to cover its overhead.

The Red Cross’ oversight of some of those grants – $10 million for cholera projects – was so poor that “at least one partner mismanaged their funds unbeknownst to ARC,” one report says, using the acronym for the American Red Cross. The Red Cross also did not assess whether the cholera projects were effective. “None of the cholera program partner’s work has been evaluated by ARC and ARC doesn’t know for sure if the objectives were achieved.”

The internal assessments lay much of the blame on American Red Cross headquarters in Washington. (ProPublica )




Nonprofit Imperative gathers its information principally from public documents...some of which are directly quoted. Virtually all cited are in some phase of criminal proceedings; some have not been charged, however. Cites in various media: Featured in print, broadcast, and online media outlets, including: Charity Navigator, Vermont Public Radio, Miami Herald, National Public Radio (NPR), Huffington Post, The Sun News, Atlanta Journal Constitution, Wall Street Journal (Profile, News and Photos), “Betrayal”, (a movie), NBC (on Charity Fraud…TBD), FOX2, ABC Spotlight on the News, WWJ Radio, Marie Claire, Ethics World, Aspen Philanthropy Newsletter, Harvard Business Review, Current Affairs, Charity Navigator, The Chronicle of Philanthropy, St. Petersburg Times, Board Room Insider, USA Today Topics, Accountants News, Newsweek.com, Responsive Philanthropy Magazine, New York Times, Portfolio Magazine, The Virgin Islands Daily News, NANKAI (China) BUSINESS REVIEW, National Religious Broadcasters newsletter, The Charity Governance Blog, American Chronicle, Palm Beach Post, Detroit Free Press, Oakland Press, Nonprofit World, Socially Responsible Business Forum, PNNOnline, Ohio Nonprofit Resources, Nonprofit Good Practice Guide, Nonprofit Startup Guide, Nonprofit Blog, National Coalition of Homeless Newsletter, Finance and Administration Roundtable Newsletter, MichiganNonprofit.com, CORP! Magazine, Crain’s Michigan Nonprofit, ncrp.org, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner, msnbc.com, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today, Answers.com, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization), Answers.com, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
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