Misuse Of Funds By An Administrator In Essay

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¶ … misuse of funds by an administrator in a human services organization. Then, explain how the example affected public trust. Be specific, and use examples to illustrate your point. The Red Cross has been under fire more than once for its alleged misappropriation of its funds and for gaps in its accountability of its money as well as for its inability to adequately deal with emergencies. The result is that the Red Cross has been experiencing a steady declension in its reputation and prominence.

In 2007, the U.S. Senate Finance Committee, in charge of and monitoring nonprofit organizations, released thousands of pages of internal Red Cross documents that point to the agency's inability to effectively manage billions of dollars in donations releasing a flurry of public and private protest. Volunteers too, according to U.S. Senator Charles Grassley (Iowa) who chaired the Committee, complained about misuse of funds and property, and even...

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Survivors of hurricanes Katrina and Rita had similar complaints as did victims of the string of disasters in Haiti all claiming that the Red Cross not only misappropriated funds but…

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Charity Navigator, a watchdog group that provides information on charities to potential donors, [reported that] the organization spent more than $170 million on administrative costs and about $111 million on fundraising expenses in 2004. Interim CEO Jack McGuire makes a salary of $416,010. The organization spent about $2.8 billion on programs. (http://newstandardnews.net/content/index.cfm/items/2873)

Criticisms like these have caused high-ranking personnel from the Red Cross to either resign or be fired. Marsha Evans quit after Hurricane Katrina, citing problems with the board of directors, whilst her predecessor Bernadine Healy, resigned as a result of accusations that alleged that she mismanaged the September 11 funds that had been specifically earmarked for families of victims killed in the attack.

The Red Cross has irretrievably and possibly irreversibly damaged its reputation with the public- at least with those who are aware of its misdemeanors. Had the Red Cross committed errors of competence, it may have been able to reverse its reputation -- or it may be able to do so in the future. However, since its errors involve


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