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Red Cross Raises Half a Billion After World Trade Center Disaster, Then Announces It Won'tspend All of the Money On Its Victims

October 31, 2001
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The American Red Cross announced yesterday it will stop asking for donations for victims of the Sept. 11 attacks andThe Red Cross’ Liberty Fund, established after Sept. 11, held an unprecedented $547 million in pledges as of Monday.

The Red Cross came under harsh criticism in the past week after revealing that it would not use all of the money ithad raised to meet the needs of victims of the WTC attacks and their families. Many families and attack survivorshave complained about the difficulty of negotiating the maze of different groups and report they have still notreceived assistance six weeks after the attacks.

The scandal over the Red Cross’s use of funds, and the way in which it appealed for them, helped force theresignation of Red Cross President Bernadine Healy. The controversy surrounding the enormous amounts of money raisedby the Red Cross also highlights the impact that the Sept. 11 attacks has impacted charities around the country thatattempt to meet the needs of the country’s poorest and most vulnerable citizens.

Guests:

  • Stacy Palmer, Editor, Chronicle of Philanthropy.
  • Daniel Borochoff, Director, American Institute of Philanthropy, a charity watchdog group based inMaryland.

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