American Red Cross must explain $175 million in unallocated Haiti donations

Discussion in 'The Okie Corral' started by maynardwix, Feb 23, 2010.

  1. maynardwix

    maynardwix Notre Dame Fan!

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    http://www.sfgate.com/cgi-bin/blogs/abraham/detail??blogid=95&entry_id=57227#ixzz0fuAKJU8Y

    One month ago, singer Wycef Jean's "NGO" (for"Non-Governmental Organization) called "Yelle Haiti" raised just over $1 million to help victims of the 7.0 Haiti Earthquake. At the time, scores of non-profit organizations sprang up to announce some kind of effort to assist the quake-damaged country. But of all of them, Yelle Haiti received the most attention because of alleged past spending patterns, leading to the awful and unfounded accusation that Wycef Jean was using the money for personal use. In this video made one month ago, Wycef Jean answered his critics:

    Just after The Smoking Gun and The Washington Post blog posts were issued (and with no evidence of having attempted to personally contact Wycef Jean to give him a chance to respond to the accusations) and the rescue efforts ramped up, suddenly the American Red Cross became mentioned in commercial after commercial as the "go-to" nonprofit for donations.

    Ok, but where's the $175 million?

    Some newspapers, like The San Francisco Chronicle, included the American Red Cross in a list of recommended organizations to donate to in the effort to help Haiti. The message, and thus the common assumption or "conventional wisdom", was that the American Red Cross was the "safe" organization to donate to.

    It's not.

    According to CNN Money, The American Red Cross had to ask for a $100 million cash infusion after its emergency fund was depleted. Today, reports are that the American Red Cross spent or committed nearly $80 million to "meet the most urgent needs of earthquake survivors."

    But wait. Where did the cost of $80 million come from? Or is it that the American Red Cross received that much in donations and while all of it is committed, only part of it is spent? According to the American Red Cross' own one month report, it has raised $255 million for the Haitian Relief effort.

    That's as much money as was raised to finance the upgrade construction of the Miami Dolphins' stadium for Super Bowl XLIV.

    But here's where the reports gets really confusing and disturbing. While $255 million was raised, only $80 million was spent or committed, leaving $175 million in donations that's neither spent nor committed to Haiti.

    Where's the $175 million the American Red Cross collected? Where's The Washington Post and The Smoking Gun to look at this?

    The complete American Red Cross Haiti one month report does not help because it fails to even mention the $175 million collected but not spent or committed to Haiti.
    Why?

    The logical mind would think that if the American Red Cross gained $255 million in money that donors believed was going to the Haiti effort, then all of the $255 million should be committed to Haiti, not some of it.

    This is a major outrage. But more outrageous is the media's blind eye to the American Red Cross' activities. One would think a reporter would not be so lazy that they could avoid subtracting $80 million from $255 million, get $175 million, read the Red Cross' online documents, and start asking about the unallocated $175 million?

    But that's what's happened in the case of the only mainstream media organization to look at donation spending progress to date, The Miami Herald. The report in the business section mentions the $255 million and the $80 million in one sentence - this one:
    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.
    But disturbingly, The Miami Herald fails to ask the "What happened to the $175 million in donations" question.

    Everyone deserves an answer, especially Wycef Jean and those who've ran Yelle Haiti, and who continue to be dogged by a PR attack that seems to have benefitted organizations like the American Red Cross and allowed them to submit sloppy reports of their own.

    Indeed, The Miami Herald picked up the "something's wrong with Yelle Haiti" theme and repeated it in the same story where they give the American Red Cross a blind pass. That is awful and must be explained ASAP.
     
  2. Adjuster

    Adjuster

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    Obviously this article or whatever it is is biased and slanted against the Red Cross. The quote makes perfect sense to me and does not leave any concerns or questions:

    "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."

    It clearly states that 250mil has been raised and 80mil of it is allocated 'so far'. This tells me that the rest will be allocated to Haiti as the needs are recognized. You can't just throw 250mil at the country. Especially given the well known criminal aspect of the Haitian government.

    And lets not forget that there was a multiple millions surplus of funds following 9/11. More money was donated than was needed. I can assume with all the publicity the Haiti situation is getting from around the world that this will be the case currently as well.
     
    Last edited: Feb 23, 2010

  3. Ragnar

    Ragnar

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    And lets not forget that the Red Cross got into some hot water then for not spending all of the donations for 9/11 on 9/11 stuff.

    http://www.cbsnews.com/stories/2002/07/30/eveningnews/main516886.shtml
    http://archives.cnn.com/2001/US/11/06/rec.charity.hearing/

    There is an issue here. How big an issue is yet to be seen.
     
  4. ray9898

    ray9898

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    Seems like a huge non-story. They have given $80mil to Haiti in these early stages. There is no reason to use all the potential aid up front.
     
  5. mitchshrader

    mitchshrader Deceased

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    it wouldn't hurt to throw a spot light on 'adiminstrative costs/perks' out of donations.

    If the truth hurts, it oughta.

    people steal. charities, politicians, bankers, preachers, they ALL DO STEAL, and only transparency and open books prevent it SOMEWHAT.. for a while, till they can be fiddled with. Any other answer works less well. Diogenes is still wearing a barrel and holding up a lantern looking for that first honest man.

    We are imperfect. Pretension otherwise is a red flag of the most alarming order.
     
    Last edited: Feb 23, 2010
  6. fistpoint

    fistpoint

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    That's what I got out of it...
     
  7. slaytera666

    slaytera666

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    If it were my call, I'd use American Red Cross funds on Americans.
     
  8. berto62

    berto62

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    Thats why I choose to give my time to an organization where almost all of what they get goes to helping people.Not paying big salaries the top executives.
    http://compassionatealliance.org/Home/

    Good people that care
     
  9. shavedape

    shavedape

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    Hmm, I'm actually agreeing with Mitch. Good job! ;)

    What bothers me about modern "charity" is that it's a business like anything else nowadays. The overhead and high dollar paychecks for people who are supposed to be doing charity work is sickening. I'll save my charitable donations for local hands-on type of organizations I can participate in, thanks very much.
     
  10. maynardwix

    maynardwix Notre Dame Fan!

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    This may not sound like a big scam now, but wait five years from now and then look to see what happened to the money. You say this looks like a non-story, but when you add up what the Red Cross has done over the years with this "non-allocated" money, it screams of corruption. You look back into any disaster that the Red Cross raised a ton of money, the 1989 SF earthquake, tsunami in Indonesia, Hurricane Katrina, 9/11 and you see how much money the Red Cross actually spent on disaster relief compare to what they took in, it will seriously make you sick.

    It doesn't bother me either way, this is just another example of their corruption, I just thought I would bring it up. If you don't belive this, that's fine, you can keep sending them donations, I just think this shows that you really need to look in to the charities you donate to, and make sure the money is going to the cause.
     
  11. Adjuster

    Adjuster

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    Isn't there some charity rating system I have seen? All charities have to provide a percentage number of how much goes to administration and how much goes to actual charity assistance.
     
  12. maynardwix

    maynardwix Notre Dame Fan!

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    I wish I knew, I heard all the stats just recently about how much they have given to all these disasters, compared to what they took in, but I can't find the info online. My google skills suck.
     
  13. hi480volts

    hi480volts

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    Ha,ha,ha You're kidding right? Use money from American's to help solve problems at home? That's crazy talk. Why would we want to help anyone here? We rush to help everyone else but when we need something we stand by and watch them thumb there nose at us.
     
  14. M&P Shooter

    M&P Shooter Metal Member

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    "For Haiti, the Red Cross has raised more than $250 million
    ___________________________________________________________

    I'm pissed off, why not do this for homeless Americans. I may sound cruel but I don't care about Haiti when Americans are starving in the streets right now. Take care of your own first.