21). When pressed, the Red Cross said they did not know if any of their recipients had received aid from other agencies, or even actually lived in the affected areas (O'Meara, 2004, p. 21). There was a controversy after the facts became known, and after the controversy hit the news, the President of the organization, Dr. Bernadine Healy resigned in October 2001 after allegations that the organization did not use all the funds collected for victim relief. In December 2005, Marsha J. Evans also resigned her position as the President And CEO, after new allegations surfaced over the terrorist attacks and problems with the relief effort in the Gulf Coast area after the 2005 hurricane season. Today, the organization posts their tax returns and annual reports on their Web site, and has a list of commonly asked questions about where their funding comes from and where it goes.
Funding may be one of the most controversial aspects of the Red Cross and their leadership. The American Red Cross receives literally billions of dollars in donations each year (in 2005 their annual report states they receive $1,424 million in contributions). They also receive about five percent of their income from investments, and fifty-eight percent of their income from the sales of products and services ("American Red Cross," 2006). The organization also relies on a huge volunteer staff to keep costs as low as possible. They claim 91 cents of every dollar they raise goes to disaster relief in some way ("American Red Cross," 2006). There have been studies that show this may not always be the case, as the questions over the terrorist attacks indicate.
The Red Cross responds to each disaster situation as necessary. Often, they do not respond directly to the disaster site, but rather set up a response center near the site where victims can find clothing, food, and shelter. For example, during Hurricane Katrina and afterward, the Red Cross and Red Cross volunteers traveled into the region and set up over 1,000 shelters across the Gulf Coast area. They distributed food, clothing,...
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