Red Cross Scandals
Hurricane Katrina
During the aftermath of Hurricane Katrina, there were 49 people indicted on accounts of theft from the American Red Cross. It was said that 14 of those had filed false claims for money which, which six had pleaded guilty. There was at least $200,000 taken from the fund and the total could be more as the investigation continues. Even though none of these people indicted worked directly for American Red Cross, they were still very involved with the non-profit organization. The interim President of the ARC says the $200,000 is a small percentage of the $1.4 billion donated.
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9/11
After the 9/11 disaster people united to raise $530 million. The American Red Cross decided to put over $200 million of that money into long-term goals or administrative costs. Shouldn’t this money be used in aiding disaster efforts instead of using it for future plans? This is a strange way of distributing money. It is said that only $40 million of the $530 million has been distributed to families of victims. Donors thought the money donated was going straight to families but more than 6 weeks after the disaster, thousands of families affected had not received any help from American Red Cross. The American Red Cross used this money donated from a huge catastrophe to make their non-profit organization stronger.
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