The U.S. General Accounting Office just released a report, American Red Cross: Disaster Assistance Would Benefit from Oversight Through Regular Federal Evaluation, following an eighteen-month investigation requested by Congressman Bennie Thompson (D-MS), the senior member of the House Committee on Homeland Security. The report finds that while the Red Cross has a mandate from the government to respond to disasters, “no regular, independent evaluations are conducted of the impact or effectiveness” of its work. The GAO report cites examples of failures in the response of the Red Cross to SuperStorm Sandy and misleading statements by the Red Cross leadership as to how the organization has spent funds raised for disaster relief work.
Indeed, this is nothing new. Following the terrorist attacks of 9-11, the Red Cross broadcast national appeals for aid for the “Liberty Fund” which appeared to suggest that all funds raised would be donated to those who lost family members or were left homeless as a result of the terrorist attacks. When the organization was slow to distribute the aid, public outcry forced the Red Cross to change its practices and begin more proactive outreach to Lower Manhattan communities impacted by the events of 9/11. Other critics of the Red Cross, such as Senator Charles E. Grassley (R-IA), questioned the efficacy of the organization’s work in Haiti following a devastating earthquake.
In response to the findings of the GAO report, Congressman Thompson has drafted the American Red Cross Sunshine Act, legislation that would require regular audits of the financial operations of the Red Cross and evaluations of its response to disasters in the United States and abroad as well as other reforms. The American Red Cross has pointed out that that it is not a federal agency, its disaster relief efforts are privately funded and its work is performed almost entirely by volunteers. These are all valid points and all underscore the need for transparency and oversight of the Red Cross – no other organization has a government mandate for disaster relief work in the United States. Clear accountability and oversight gives donors the confidence that their contributions will be used in the most effective way, consistent with the donor’s intent and the organization’s mission. Congressman Thompson’s bill deserves support and all Americans owe thanks to Pro Publica, the non-profit journalism organization that provided an in-depth look at the response of the Red Cross to SuperStorm Sandy.
