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American Red Cross Case Study

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In naming some of the problems the American Red Cross has encountered with handling donation money, the first would be the mishandling of the more than $543 million in pledges that was donated during and after the September 11th attacks. There was a fund that was setup and structured just to help the victims of September 11th, this fund was called the “Liberty Fund”. Unfortunately, only one-third of the funds had been released to actual September 11th efforts (Ferrell, Fraedrich, & Ferrell, 2015). Instead it was said that the American Red Cross used more than half the money to prepare for future catastrophes. Many felt that this money should have been used for the millions of people that needed the help during September 11th time. An outrage prompted a U.S. hearing in November 2001, …show more content…
These Hurricanes were categorized as the largest national emergencies in the history of the American Red Cross. First, there was Hurricane Katrina which hit New Orleans on August 23, this storm was known to be the most costly hurricane in history. Then Hurricane Rita hit Louisiana and Texas one month later and was said to be larger than Hurricane Katrina. The American Red Cross brought in donations of more than $2 billion in private donations for these disasters. The money which was donated to help with the relief efforts of these hurricanes, but again the American public was unsatisfied with the inadequate and untimely relief efforts that was depicted by the media. The media spoke of a host of fraudulent, questionable, and inefficient decisions that was made by the American Red Cross, and its federal, states, and local disaster relief counterparts. After which the Government Accountability Office (GAO) wrote a report detaining the inadequacies of the American Red Cross and the Federal Emergency Management Agency (FEMA) (Ferrell, Fraedrich, & Ferrell,

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