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How the Red Cross Raised Half a Billion Dollars For Haiti and Built 6 Homes

An anonymous reader points out an investigation from NPR and Propublica into how the Red Cross spent the $500 million in relief funds they gathered to help Haiti after the country was devastated by an earthquake in 2010. They found "a string of poorly managed projects, questionable spending and dubious claims of success." While the organization claims to have built homes for 130,000 people, investigators only found six permanent homes they could attribute to the charity. The Red Cross admitted afterward that the 130,000 number included people who had attended a seminar on how to fix their own homes.

"Lacking the expertise to mount its own projects, the Red Cross ended up giving much of the money to other groups to do the work. Those groups took out a piece of every dollar to cover overhead and management. Even on the projects done by others, the Red Cross had its own significant expenses – in one case, adding up to a third of the project’s budget." The Red Cross raised far more money for Haiti than any other charity, but is unwilling to provide details on where the money went. In one case, a brochure that extolled the virtues of one project claimed $24 million had been spent on a particular area — but residents of that area haven't seen any improvement in living conditions, and are unable to get information from the Red Cross. The former director of the Red Cross's shelter program said charity officials had no idea how to spend the money they'd accumulated.

8 of 235 comments (clear)

  1. They throw money at shit they don't need... by kiphat · · Score: 5, Insightful

    Having witnessed first hand how the Red Cross spends its money on IT infrastructure it doesn't need, I refuse to give them a single dime.

    1. Re:They throw money at shit they don't need... by ShanghaiBill · · Score: 5, Insightful

      All they ended up doing was teaching English. Waste, waste, everywhere.

      How is teaching English a waste? Haitians speak a creole, that is unintelligible to even standard French speakers. This isolates them from the world economy, and is part of the reason they have 15% of the per capita GDP as the neighboring Dominican Republic, where standard Spanish is spoken. English lessons should be very useful.

  2. Not donating to private charities is easy by mi · · Score: 4, Insightful

    That's the advantage of benevolence based on private charities — the mismanaged ones lose donations and disappear. I too stopped donating to Red Cross long ago — my charity money goes to the IRC.

    I refuse to give them a single dime.

    Try that attitude with public charities — financed by monies taken from you and me at gunpoint (taxes)... Whatever you may feel about their goals and methods, you can not simply stop paying them — your only recourse is to raise awareness hoping for the eventual healing to begin.

    Oh, and they are unconstitutional too, but that stopped bothering anybody long ago.

    --
    In Soviet Washington the swamp drains you.
    1. Re:Not donating to private charities is easy by kenj123 · · Score: 5, Insightful

      you could move to a paradise country with no taxes. I think Somalia doesn't have a national tax.

    2. Re: Not donating to private charities is easy by thesupraman · · Score: 4, Insightful

      No.. He was quite clearly attacking the idea of taxes as a source of charity and wealth redistribution.. Not all taxes.
      If you cannot see the difference then you have no place in any discussion about taxes.. Except as an example of the problem.
      The point is very clearly that poorly run private charity is easily fixed (move your donations). Publicly run charity is next to impossible to fix and rapidly devices into a self serving politically motivated disaster.

  3. Local charity by vivaoporto · · Score: 5, Insightful

    This and many other examples like

    - PETA euthanizing more animals than they shelter
    - UNICEF expenses of 52 million dollars (pdf) in expenses related to management and fundraising (out of a 600 million dollars budget, and that's one of the best managed ones out there)

    show that it is much more efficient to donate time or money locally instead of to big organizations.

    Donate to your local food bank, soup kitchen, volunteer some time in the retirement home, the satisfaction will be the same and the effects will be much more efficient. Or, at the very least, don't screw people over, it is more than enough if you can do that.

    Why should you donate anything to help someone in the other side of the world while people needs your help in your own neighbourhood?

  4. Re:Never give to any charities by Anonymous Coward · · Score: 2, Insightful

    And as soon as the tornado rips your trailer park to shreds, you'll be the first one with your hand out looking for donations.

  5. Re:Haiti Money went through the Clinton Foundation by sheetsda · · Score: 4, Insightful

    This is the woman people want for president

    Here in the USA we do not have the luxury of voting for the person we want for president. We have to vote against the person that we don't want to be president.

    See also