Monday, February 22, 2010

American Red Cross $175 million in unallocated Haiti donations - update

On the matter of the American Red Cross and the $175 million in unallocated Haiti donations, this update: there's still no word from the American Red Cross on how the $175 million in donations was handled. Initial attempts to gain an answer have been ignored as of this writing.

Meanwhile, the issue is gaining attention. This blogger was on a Fairfield, Iowa radio broadcast last Friday and more radio talk shows have expressed unsolicited interested in the matter of the American Red Cross and the $175 million in unallocated Haiti donations.

For background, it's simple: the American Red Cross reported it collected $225 million in donations over the first month of the Haiti Relief Effort. But of that, $80 million was spent or earmarked for Haiti. The American Red Cross does not explain what happened to $225 million minus $80 million, or $175 million?

On Friday, I was on KRUU, "The Voice of Fairfield" in Fairfield, Iowa, on James Moore's Planet Erstwild Show to talk about the American Red Cross donation problem. Here's the recording of that radio show: Zennie Abraham on KRUU.

This is the Zennie62 video on the issue:



Stay tuned.

5 comments:

  1. I saw your post in SFGate.com and your video criticizing the American Red Cross collection and allocations of donations for the Haiti earthquake. I also saw the response posted from the Red Cross Chief Public Affairs Officer. What I haven't seen is any follow up from you either providing any further evidence of malfeasance or acknowledging the Red Cross position that the funds will be used as stated. Wouldn't a responsible journalist want to provide the facts instead of just ringing (false) alarms and waving his arms in the air?

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  2. Evidence? Can't anyone do math? What's $225 million minus $80 million? It's $175 million. That's -- again -- not explained in the American Red Cross' Haiti Report. As for the public affairs official, that comment post is just that. I don't read SFGate.com comments; the public affairs officer's job is to follow up directly with me. Also, I'm a blogger which is more than a journalist. I present my findings, view, and opinion. I find it funny that people use the word "journalist" whenever I write something they disagree with.

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  3. Blogger or journalist, one should provide facts to support a story or opinion.

    I don't disagree with you. I also believe the ARC should be more transparent and detailed in the reporting of the funds and how they are used. But absent any evidence to support any misappropriation, I find it hard to accuse the ARC of misusing the donated funds. (BTW, check your arithmetic: $255 million minus $80 million equals $175 million.)

    Additionally, I've also read in a couple of reports where an ARC representative stated quite clearly that the funds donated for Haiti relief will be used only for Haiti relief and that they are being very judicious and speedy in doing so. The funds that have not yet been spent will be spent in the coming months.

    Perhaps the phrase used in the ARC report "committed $80 million" is not the best way to state it.

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  4. Time out! I did provide "the facts" it's just that there's no need to write the blogging equivalent of "War and Peace" to make the point. Moreover, ARC really screwed this one up.

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  5. I'm curious to know what the ARC screwed up. Yes, it was a goofy way to state the financials in the monthly report, but subsequent statements have made it clear that the balance of the funds are intact and available and ready to be expended in Haiti in the coming months.

    Nowhere have I read that there is any question of inappropriate use of funds. And nowhere have I seen the ARC is concealing how funds are allocated.

    I don't doubt that the ARC, like many organizations, is seeing a significant increase in donations and volunteering due to the crisis in Haiti. Clearly, as I said before, a more transparent view of how the ARC manages the finances is welcome. And perhaps the ARC web pages could be organized differently too. But I don't think the disclosures so far rise to a level of a "major outrage."

    Perhaps no one from the Miami Herald or Washington Post found anything unusual to report. Perhaps they checked with the ARC and were satisfied with the way in which the funds are managed. In the quote you cited from the Herald "For Haiti, the Red Cross has raised more than $250 million and has plans for some $80 million of that so far, said Red Cross spokesman Jonathan Aiken" the phrase "so far" makes it clear the rest of the funds are awaiting allocation. Not that they have disappeared.

    I didn't see in your blog or comments above that you contacted the ARC for clarification of the facts. (You did say it's up to the ARC to contact you - but why would they even think to contact any blogger that might have an agenda?)

    And no, I'm not paid by the ARC to make comments on your blog! I just happened upon it from a post by a friend on Facebook.

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