Despite its failings, the Red Cross is one of the organizations best able to deal with disasters
As with all natural disasters, the public and the business world have reacted with an for people suffering from Hurricane Harvey’s. The usual appeals for Americans and U. S. companies to open their wallets, however, have been accompanied by from some corners urging donors to avoid the American Red Cross, the well-established nonprofit that is part of the worldwide. What’s driving this emerging movement is investigative reporting that documented wasteful spending after the 2010 and irregularities in relief efforts following and other domestic disasters. As an accounting scholar who has researched the finances of charities for years, I’ m usually the first to. But in this case, I believe the Red Cross’s need to be put in context. While being mindful with other people’s money is essential, so is having enough resources in place to do what’s needed during emergencies. And few charities have the resources the Red Cross can muster. Facebook apparently disagrees. Although the social network partnered with Red Cross affiliates during campaigns to aid victims of Typhoon Haiyan in 2013 and the Ebola outbreak of 2014, match donations to the group as a part of its effort to help Harvey victims. Instead, Facebook drummed up support for the, in funds donated to the group for Harvey victims. Facebook’s decision and the recent calls for Harvey donors to steer clear of the Red Cross are part of a troubling pattern. The public often views high-profile charities as infallible until their mistakes come to light. Then, supporters. The, an organization that helps injured veterans, recently experienced this fall from grace when it went from a household name to being called out for excessive spending on advertising and conferences. Despite seeing its, the veterans’ charity is continuing its work and trying to get back on what Eric Miller, its chief financial officer, calls a “growth trajectory.” But the reality is that the vast majority of nonprofits have both critical expertise and fixable flaws rooted in good intentions. Donors may be tempted to bypass the Red Cross and support other charities. Invariably, though, those groups are just as imperfect. It’s best to understand both the expertise and flaws of each charity, push for improvements and support a range of organizations that collectively possess the expertise needed to help people in need.
