Red Cross ready to help despite budget shortfall

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The American Red Cross is facing a serious shortfall in its disaster-relief fund and, as it prepares to respond to fallout from Hurricane Isabel, officials from the agency are calling on the public to help.

"We're looking for Americans and our corporate partners to help us replenish our funds," said Red Cross spokeswoman Kara Bunte. "They've always found it in the past and we believe they'll do it this time as well."

From 2002 to 2003, the organization spent $114.3 million from its relief fund to assist victims of more than 3,300 disasters, but took in only $39.5 million in donations.

The fund, which is "basically empty" at an 11-year low, Ms. Bunte said, is used to provide shelter, food, clothing, essential medication, first aid and counseling to thousands of disaster victims each year.

Ms. Bunte said a downturn in the economy has resulted in fewer charitable donations. She also said the Red Cross in the past year has responded to many "silent" disasters -- such as a typhoon at Guam, various apartment fires, flooding, windstorms and wildfires -- that do not make big headlines.

Although the Red Cross relies on private donations, many people think it is a government-funded organization. "It's a common misperception," Ms. Bunte said.

In 2001, the Red Cross was criticized for planning to reserve for future disasters some of the flood of donations for the families of September 11 victims. The agency quickly reversed course, but this did not prevent two congressional hearings over its handling of the money and the resignation of Red Cross President Dr. Bernadine Healy.

It is hard to say whether these problems have led to decreased donations and the shortfall in the disaster-relief fund, Ms. Bunte said.

"I really think the Red Cross has gained the trust of the American people back," she said.

The Red Cross is not letting funding problems hamper its response to Isabel. It has 100 emergency-response vehicles in Columbus, Ohio, and Nashville, Tenn., ready to transport relief supplies to affected areas.

More than 700 trained Red Cross volunteers assisted with storm preparations, and thousands of additional volunteers are available to aid the hardest-hit communities.

"We'll have as many volunteers there as necessary," Ms. Bunte said.

The Red Cross is borrowing money internally from the general operating fund to help the disaster-relief fund. They also have created a Disaster Relief Fund Campaign Cabinet of 14 members, including leaders from American Express Foundation, Dell Corp., NBC's "Today" show and State Farm, which are helping raise money and awareness.

So far, Cabinet members themselves have donated $1.3 million in personal or corporate gifts.