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06-17-2008, 02:52 PM #1
American Red Cross says disaster funds are depleted
American Red Cross says disaster funds are depleted
DES MOINES, Iowa (AP) -- The American Red Cross said on Monday that its Disaster Relief Fund is wiped out and it's being forced to borrow money to help flood victims throughout the Midwest.
Jeff Towers, the organization's chief development officer, said the balance for domestic disaster relief efforts is zero. He said the American Red Cross would borrow to keep workers and volunteers in the field helping flood victims.
"The Red Cross remains committed to providing the scale of services that people expect of the Red Cross when disaster strikes, and the way that we are doing that right now is taking out loans to fund our response," he said during a conference call from Washington. "That's not a position we want to be in; it's obviously not sustainable."
The shortage in the organization's only domestic disaster relief fund comes as it continues flood relief efforts in soaked Iowa and ramps up its work downstream in Illinois and Missouri as more flooding is expected there. Officials said the Red Cross has 2,500 workers on the ground, 89 percent of them volunteers.
Joe Becker, senior vice president of disaster services, said the fund has been depleted over the past few years in the absence of large-scale disasters that bring attention to the relevance of the Red Cross.
"We have had a large number of mid-size disasters or silent disasters that have cost us a considerable amount of money where we've not been able to raise what it's cost us to provide that service," he said.
So far, he said the flood response in the Midwest has cost about $15 million, and Towers said it could reach as high as about $40 million.
"That's putting this in the category of a very significant disaster for the Red Cross, historically, when you would look at what we spend on relief efforts," Becker said.
Towers said the organization has raised only about $3.2 million toward the flooding response. He said it's an especially difficult time to seek funds with a troubled economy and many previous givers now reaching an age that they are on a fixed income.
"With rising fuel prices and food prices people are forced to make a decision and very often in situations like this they cut back on their charitable donations," he said.
Towers reminds that the flooding in the Midwest follows response to a variety of disasters including tornadoes and in anticipation of hurricane season.
"The disaster relief fund makes for great use and is in great demand and is very much in need of funds," he said.
Becker said that while the flooding in Iowa is worse than in 1993, the organization doesn't see the overall impact on the Midwest as being as great as that flood 15 years ago.
"What's different this time is we don't have the rain that we had further south down the river" in southern Missouri, he said during the conference call. "We think this will be a more confined event."
Much of what the Red Cross can expect to spend will depend on what happens down river.
"Frankly, the wild card is whether St. Louis floods or how significantly St. Louis floods," Becker said, adding that the crest there is expected to be 39 feet, about 10 feet lower than in 1993. "We're taking that as good news."
Link"Distrust and caution are the parents of security."
Benjamin Franklin
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06-17-2008, 03:07 PM #2The financial reports begin to document the underpinnings of a drive for dollars that is expected to make 2008 the nation's first billion-dollar presidential campaign. Top-tier candidates are hard at work courting wealthy political enthusiasts who can deliver scores of thousand-dollar donors. Sen. Hillary Rodham Clinton (D-N.Y.) held a gathering for 70 of those "bundlers," as they are known, last night at her Washington home.
Towers said the organization has raised only about $3.2 million toward the flooding response.
Bush wants to give $1.4 billion to Mexico for the Merida Initiative.
"Give til it hurts"....we passed that point long ago."Distrust and caution are the parents of security."
Benjamin Franklin
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06-17-2008, 03:12 PM #3
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Outsource all the good paying jobs and there are few who can donate like they did before. Many underemployed cannot afford to donate, many former high tech folks go to work and say "Welcome to Walmart"
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06-17-2008, 04:04 PM #4
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So true, the source of their financial woes is because of our economy. They can complain all they want, but they need to see that with people now severely limited by either incomes of lack thereof, there will be no more giving. And with our government giving so much to other nations, who IMO could do it for themselves, we will suffer the consequences here in this nation.
The financial lifeblood that was once America is being bled dry. We are dying for other nations to fight their crime and corruption, when they should be doing it themselves.“In the beginning of a change, the Patriot is a scarce man, Brave, Hated, and Scorned. When his cause succeeds however,the timid join him, For then it costs nothing to be a Patriot.â€
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06-17-2008, 04:24 PM #5
You make such a great point MyAmerica. I would also add that, 3 years AFTER hurricane Katrina, the government is spending billions of OUR tax money feeding, housing, and literally wiping the butts of far, far too many able bodied, "victims".
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06-17-2008, 04:59 PM #6
Thank you greyparrot.
Has even ONE other country offered aid to the U.S. for the flood diaster?"Distrust and caution are the parents of security."
Benjamin Franklin
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