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The Red Cross CEO Has Been Misleading About Where Donors' Dollars Are Going
Key Excerpts from Article on Website of MSN News
Posted: December 7th, 2014
http://www.msn.com/en-us/news/us/the-red-cross-ceo-has-been-...
The American Red Cross regularly touts how responsible it is with donors' money. "We're very proud of the fact that 91 cents of every dollar that's donated goes to our services," Red Cross CEO Gail McGovern said in a speech in Baltimore last year. The problem with that number: It isn't true. After inquiries by ProPublica and NPR, the Red Cross removed the statement from its website. In recent years, the Red Cross' fundraising expenses alone have been as high as 26 cents of every donated dollar. But even that understates matters. The charity spends additional money on "management and general" expenses. That means the portion of donated dollars going to overhead is even higher. After being contacted by ProPublica and NPR, the charity changed the wording on its website to another formulation it frequently uses: that 91 cents of every dollar the charity "spends" goes to humanitarian services. But that too is misleading to donors. The charity spent $467 million, or 14 percent of total spending, on its famous domestic disaster response programs, including the expensive Sandy relief effort. The Red Cross doesn't break down its spending on overhead and declined ProPublica and NPR's request to do so. Other figures the Red Cross frequently cites also appear to be unreliable.
Note: This ongoing NPR/ProPublica investigation has also found that the Red Cross used courts to hide its spending habits, and diverted funds from disaster relief to manipulate the media. For more along these lines, see concise summaries of deeply revealing articles about corporate corruption from reliable sources.
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