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Report: Red Cross Spent 25 Percent Of Haiti Donations On Internal Expenses
Published:
Very revealing article, suggested reading.
Report: Red Cross Spent 25 Percent Of Haiti Donations On Internal Expenses
By: Laura Sullivan Source: NPR
"....The Red Cross, including McGovern, repeatedly has told the public that all but 9 percent of donations spent go to humanitarian programs. But Grassley's office found that 25 percent of donations sent to Haiti — or nearly $125 million — were spent on fundraising and management, a contingency fund and the catchall category the Red Cross calls "program expenses."
The Red Cross sent the bulk of the remaining donated money to other nonprofits to do the work on the ground. Those other nonprofits then took their own cuts — as high as 11 percent — for their own expenses.
"The most important thing [from the report] is an unwillingness to level with the people exactly where the money went," Grassley says. "There's too many questions in regard to how the money was spent in Haiti ... it gives me cause to wonder about other money being donated for other national disasters." ....."
"....The Red Cross, created by a congressional charter more than a century ago, receives a range of special benefits from the U.S. government. ......"
"....In meetings and email correspondence over several months, Red Cross General Counsel David Meltzer questioned GAO's legal authority to look at the Red Cross.
The Red Cross argued that investigators' "requests for internal decision-making, internal oversight, and internal funding allocation are outside of GAO's authority," according to the GAO's account....."
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This has been a growing problem in recent times exacerbated principally by way overpaid $$$ CEO & staff :-(
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