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Red Cross halts donations appeal
Wednesday, Oct. 31, 2001
 
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By DARLENE SUPERVILLE
Associated Press Writer

WASHINGTON — The American Red Cross is halting its appeals for donations to a fund created to help victims of the Sept. 11 terrorist attacks, its interim chief executive officer said Tuesday.

The Liberty Fund held $547 million in pledges as of Monday.

Contributions received after Wednesday will be deposited in the charity's Disaster Relief Fund, a general account servicing all kinds of emergencies, unless donors specify the money is for the Liberty Fund, said Harold Decker, the organization's interim leader.

Liberty Fund money also will continue to be held separately from other funds, Decker said, and will be spent on aid to victims' families and other relief efforts arising from the attacks.

``That is the way the fund was set up. That is what donors expect,'' he told reporters.

During a weekend meeting of the Red Cross' governing board, Decker was chosen to succeed Bernadine Healy, who resigned Friday, until a committee finds a permanent replacement.

In her resignation, Healy cited differences with the board, including her decision to keep those Liberty Fund dollars separate from the organization's main relief fund.

Decker said charitable groups that are raising money to help those affected by the terrorist attacks should read nothing into the American Red Cross' decision to close the Liberty Fund.

``We're not trying to send signals to other people,'' he said.

One factor in the decision is that fund raising for the Liberty Fund apparently has contributed to a drop in its Disaster Relief Fund, which held $26 million as of Sept. 30, said chief financial officer Jack Campbell. The fund's target is about $57 million, he said.

Decker said it was recognized from the beginning that the Liberty Fund was created for a specific event and would eventually be closed.

He said the decision shouldn't hamper future fund raising.

``If we need to come up with support and relief for our fellow citizens in another time, in another place, in another manner, the American Red Cross will do it,'' Decker said.

As for criticism of the handling of the Liberty Fund and Healy's abrupt departure from the nation's largest charity at such a critical time, Decker said the ``American people understand the Red Cross is doing its very best under very difficult circumstances.''

``This is not a one-person operation and the Red Cross will go forward,'' he said.

Since the Sept. 11 attacks, which killed more than 4,800 people in New York and Washington and touched thousands more, the Red Cross has spent more than $140 million on related disaster relief.

Of that amount, nearly $44 million has been distributed to more than 2,200 affected families to help cover housing, child care, food and other expenses for about three months.

About $67 million was spent on immediate disaster relief needs, such as onsite food, shelter and other support for rescue workers and victims' families.

More than $11.5 million has been spent on blood donor programs, $14.7 million on nationwide community outreach and $2.5 million on indirect support costs, such as fuel for emergency response vehicles and maintaining a toll-free information hot line.

The Red Cross expects to spend about $300 million over the next year on these efforts. The remaining funds, more than $200 million, will be held and used for future needs arising from the attacks and their aftermath, including subsequent terrorist assaults.

The charity also is contacting victims of anthrax sent through the mail and has given money to the families of a tabloid photo editor in Florida and two Washington postal workers who died after being infected with the bacteria, Campbell said.

Decker, 56, joined the Red Cross as deputy general counsel in February after a 21-year career with drug maker Pharmacia Corp. He became Red Cross general counsel in September.

At its weekend meeting, the Red Cross board also affirmed support for full membership for its Israeli equivalent in the global Red Cross network and for withholding administrative dues from the International Federation of Red Cross and Red Crescent Societies.

Healy, who is to continue as president until Dec. 31, cited differences over this issue in her resignation.

The American Red Cross also has hired accounting firm KPMG to audit the Liberty Fund. The findings will be released publicly once the audit is completed, Decker said.

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On the Net:

American Red Cross: http://www.redcross.org

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