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Posts Tagged ‘ProPublica’

Disasters, Donations, Deceptions: Red Cross has another ‘Trade Secret’

Posted by feww on June 27, 2014

Sandy: Another Hurricane from ‘Heaven’ for Red Cross

Most aid organizations, which at any rate only pass on only about FIVE percent of all donations received, run huge cash deficits because of their overheads, especially 6-figure wages to their executives,  and have to pay off their debts before worrying about mundane things like looking after the injured, starved and homeless victims of disasters.

In 2002, the Better Business Bureau temporarily stripped the American Red Cross of its status as one of the nation’s best-run charities while it investigated complaints that the Red Cross mismanaged the $850 million it raised for victims of the September 11 attacks.

Red Cross is now fighting a public records request for information on how it raised and spent money after major disasters caused by superstorm Sandy.

Just how badly does the American Red Cross want to keep secret how it raised and spent over $300 million after Hurricane Sandy?

The charity has hired a fancy law firm to fight a public request we filed with New York state, arguing that information about its Sandy activities is a “trade secret.”

The Red Cross’ “trade secret” argument has persuaded the state to redact some material, though it’s not clear yet how much since the documents haven’t yet been released.

As we’ve reported, the Red Cross releases few details about how it spends money after big disasters. That makes it difficult to figure out whether donor dollars are well spent.

The Red Cross did give some information about Sandy spending to New York Attorney General Eric Schneiderman, who had been investigating the charity. But the Red Cross declined our request to disclose the details.

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