Red Cross revisted
A few people have commented on the provocative nature of my Boo for the Red Cross post. Aren’t they a motherhood and apple pie charity? Aren’t they the first people on the ground providing essential services around the world in disaster situations? They certainly do and thank goodness they are there, undoubtedly saving thousands of lives every year.
I was being glib but there are many people disappointed in the American Red Cross (creators of the Blood Saves campaign I wrote about) and concerned for their future.
Why? Since 9/11 they have had constant leadership turmoil (three interim CEOs and three CEOs), they have been criticized for not informing donors that their gifts would not be spent on the disaster they donated to (particularly for the September 11 Liberty Fund), and they have been accused of providing inadequate emergency services and being unwilling to work with local charities in dealing with Hurricane Katrina. Recent Congressional hearings have been investigating their response to Katrina and their lack of accountability to the public.
(The Canadian Red Cross has had their share of problems too – remember the criminal charges in the hepatitis C and HIV tainted blood scandal that resulted in blood supply services being entirely removed from their purview. The American Red Cross still has responsibility for a significant portion of the US blood supply, although they have paid millions of dollars in fines for safety violations in tracking and distributing blood.)
The American Red Cross operates under a Congressional charter as the primary provider of humanitarian relief and emergency services during a large disaster. Thirty of their 50-member Board of Governors are local chapter representatives. Many, including former Red Cross CEOs, say those board members protect their local chapter interests at the expense of the larger mission. The US President appoints eight other positions. Can you say governance problem?
The Chronicle of Philanthropy had a special feature on the American Red Cross earlier this month to look at the organization’s complex challenges in meeting their important mission. They have interesting advice from 16 experts for whoever is brave enough to become their next CEO (available to subscribers only).
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