American Red Cross Announces New Disaster Fundraising Policy

American Red Cross Announces New Disaster Fundraising Policy

Responding to assertions that the agency misled donors who contributed to September 11 relief and recovery efforts, American Red Cross officials have announced significant changes in the way the relief agency will conduct fundraising appeals in the future, the Associated Press reports.

In a major policy shift, the Red Cross acknowledged that, in the past, it did not clearly explain to donors that funds contributed to a local disaster could be used for disaster relief in other parts of the country. Under its new plan, the agency will notify the public when the costs of a local disaster have been met and will stop using prominent references to such disasters in national fundraising appeals, relying instead on more generalized appeals.

The Red Cross was widely criticized last October when it announced that it planned to hold a significant portion of the money raised to aid victims of the September 11 attacks on the World Trade Center and the Pentagon in reserve for future disasters and terrorist strikes.

"Red Cross Changes Donation Process." Associated Press 06/05/2002.