Red Cross Deep in Debt After Storms
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
The wave of storms battering America has plunged the American Red Cross deep into debt as it rushes to prepare for Hurricane Ike, prompting a searching look at how to stabilize its finances.
Gail McGovern, who became the embattled charity’s president in June, said even a request for federal funding is under consideration as the Red Cross seeks to become less dependent on spontaneous donations that arrive only in the wake of huge disasters.
“We are going to explore every avenue we can to ensure we have a healthy Red Cross,” Ms. McGovern said in an interview yesterday as her organization deployed 1,000 out-of-state volunteers to Texas to await menacing Ike.
As of last week, when Ike was still a distant threat, the Red Cross said it has raised only $5 million to cover costs from Hurricane Gustav that will total at least $40 million, possibly more than $70 million.
