Where Should the Red Cross Money Go?

The American Red Cross has announced that it expects to spend a sum of $2 billion to provide relief to Hurricane Katrina victims, almost as much as it made in response to the September 11 terrorist attacks. But that money is earmarked for short-term aid, and some charities are asking: Where will the money for long-term rebuilding come from?

According to an article by Nicole Wallace on the Chronicle of Philanthropy website, the $2 billion will “far surpass the $1.3-billion donated to U.S. relief groups for the December tsunamis.” The Red Cross told Wallace that some four million people could require meals, shelter, financial assistance and other services.

But Wallace says many charities are questioning where the donations for long-term rebuilding will come from, and whether or not any one organization should receive such a large share of the donations that follow a major crisis.

“Charities in Louisiana, Mississippi, and Alabama are all vying for donations in the belief that they have the local knowledge that will be crucial to rebuilding cities and towns torn asunder by the storm,” Wallace says. “But many are struggling as they try to raise money on the national stage, often for the first time.”

Still, Wallace says that no matter what the case, “private donations will pale in comparison to the federal government's investment in the region.” Philanthropy, instead, can fill in any gaps in aid.

To read the full article, click here: http://philanthropy.com/free/articles/v17/i24/24000901.htm