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Posted By	Discussion Topic: Red Cross changes policy
Canweseeyourstuff	posted on 11-14-2001 @ 2:55 PM
O&A Board Regular Registered: Oct. 00	the red cross had a change in policy regarding the 911 liberty fund WASHINGTON (Reuters) - Stung by criticism of its handling of donations for the Sept. 11 attacks, the American Red Cross said on Wednesday it will spend its entire $543 million Liberty Fund on victims of the assaults. Donors and U.S. lawmakers had questioned the American Red Cross, one of the world's largest charities, after it said only about $300 million of the Sept. 11 fund would go immediately to families while the rest would be used for related projects. "Americans have spoken loudly and clearly that they want our relief efforts directed at the people affected by the Sept. 11 tragedies," Harold Decker, appointed chief executive of the American Red Cross two weeks ago, said at a news conference. "We deeply regret that our activities over the past eight weeks have not been as sharply focused as America wants, nor as focused as the victims of this tragedy deserve." Red Cross officials said they were restructuring the Liberty Fund to provide more money for food, housing, utilities, tuition, health care and child care for families whose relatives were killed or seriously injured in the attacks. By year's end, the fund will have distributed about $275 million, roughly half of the money collected after hijackers flew passenger jets into the World Trade Center, Pentagon and a field in Pennsylvania, killing about 4,600 people. About $137 million has been spent to date, officials said. The charity was providing assistance to survivors of those killed or injured, people whose houses were damaged or businesses affected in the disaster areas, rescue workers and families of those who died from anthrax, officials said. The charity came under fire when it said some of the Liberty Fund money would be used for projects such as a frozen blood inventory, communications improvements to aid processing of donations and preparation for additional attacks. New York's top prosecutor, Attorney General Eliot Spitzer, said last week that legal action was possible if the charity did not distribute all of the Liberty Fund money to families. "Regrettably, it took us too long to hear their message," said American Red Cross Chairman David McLaughlin. Congressional critics applauded the decision. "For people who are looking literally at how they are going to pay their rent payment, or for that matter their car payment or for that matter their tuition payment or for that matter their food, this is going to be really dramatic, positive news," said Rep. Peter Deutsch, a Florida Democrat. Red Cross officials said they expected overhead expenses on the Liberty Fund project would amount to about 9 percent of donations, less than the customary 12 to 15 percent.

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