Advertisement

Archive for Friday, September 12, 2008

Red Cross deep in debt after recent storms

September 12, 2008

Advertisement

In this Sept. 6, 2005, file photo, American Red Cross volunteer Maurrie Sussman, right, comforts a New Orleans resident at the Veterans Memorial Coliseum in Phoenix.

In this Sept. 6, 2005, file photo, American Red Cross volunteer Maurrie Sussman, right, comforts a New Orleans resident at the Veterans Memorial Coliseum in Phoenix.

— The wave of storms battering the U.S. has plunged the American Red Cross deep into debt as it rushes to prepare for Hurricane Ike, prompting a searching look at how to stabilize its finances.

Gail McGovern, who became the embattled charity's president in June, said even a request for federal funding is under consideration as the Red Cross seeks to become less dependent on spontaneous donations that arrive only in the wake of huge disasters.

"We are going to explore every avenue we can to ensure we have a healthy Red Cross," McGovern said in an interview Thursday as her organization deployed 1,000 out-of-state volunteers to Texas to await menacing Ike.

As of last week, when Ike was still a distant threat, the Red Cross said it has raised only $5 million to cover costs from Hurricane Gustav that will total at least $40 million, possibly more than $70 million. It has borrowed money to meet those bills, and now is incurring more expenses as it shifts response teams to Texas and readies its shelters.

McGovern said Red Cross officials were calling Gustav a "silent disaster" because it entailed sizable costs for sheltering displaced people, yet did not trigger the flood of donations that often follows more deadly and destructive storms.

With Ike, McGovern said, the Red Cross wants to be ready even though it has no idea how costly the storm will be. It launched a new fundraising appeal Monday, and will get a plug this weekend when the NFL encourages donations with on-air and in-stadium announcements during its games.

Comments

Use the comment form below to begin a discussion about this content.

Commenting has been disabled for this item.