Friday, July 8, 2016

Government Oversight of Red Cross Bill Introduced

By Gary Snyder

Three weeks after publishing a report critical of the American Red Cross, Sen. Charles Grassley introduced a bill Wednesday that would grant the federal government clearer authority to access the charity’s records.
The "American Red Cross Transparency Act of 2016" would also require the charity’s-internal investigations unit to report directly to the board, instead of the general counsel, which would make it more independent.
The bill, S. 3128, is a direct response to what the senator has characterized as the charity’s refusal to cooperate with an audit by the Government Accountability Office about its disaster-response work.
The American Red Cross has a congressional charter that grants the head of the GAO authority to "review the corporation’s involvement in any federal program or activity the government carries out under law."
The charity asserted that the GAO could only access its records regarding decisions that directly involve federal funds or work it does in partnership with the Federal Emergency Management Agency, according to the report by Sen. Grassley, a Republican from Iowa. The senator has accused chief executive Gail McGovern of trying to thwart the GAO’s audit.

Government Rights

The new bill would make clear that the GAO has the right to access any American Red Cross information about internal governance and programs connected to "national preparedness," plus the right to interview any board member, employee, or volunteer.
Adding staff members to the internal-investigations unit is the only step that Board of Governors chair Bonnie McElveen-Hunter said the board would take in response to Sen. Grassley’s report, according to an interview with The Chronicle three weeks ago.
The bill was referred to the Senate Judiciary Committee, which Sen. Grassley chairs.
A spokesperson for the American Red Cross said the nonprofit "will review the proposed legislation and make our views known to Congress at the appropriate time."

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,, 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,, CORP! Magazine, Crain’s Michigan Nonprofit,, PhilanTopic, Nashville Free Press, Nonprofit Law Blog, Seniors World Chronicle, Carnegie Reporter, Assoc. of Certified Fraud Examiners Examiner,, Worchester (MA) Telegram and Gazette, Carnegie Corporation of America, EO Tax Journal, Wikipedia: Non-profit Organizations; Parent: Wise Austin, Accountants News, Veterans Today,, Far-roundtable, #Nonprofit Report, nonprofithelpnews, nonprofit news; National Enquirer, Northwest Herald, The HelpWise Daily, The #Nonprofit Report, Wikipedia (Nonprofit Organization),, Nonprofits: On the Brink (2006) Silence: The Impending Threat to the Charitable Sector (2011)
Post a Comment