American Red Cross establishes "Donor Direct" program. (Fundraising).

The American Red Cross, Washington, D.C., has overhauled its disaster fundraising practices in response to the controversy that developed over its September 11 Liberty Fund, which raised $967 million on behalf of victims. Some donors were surprised and upset to subsequently learn that the charity intended to use some of the contributions for needs unrelated to the attacks. The public outcry made it clear that the organization had to "do a better job of educating donors about how we fund disaster relief services," says David McLaughlin, chair of the American Red Cross, which provides relief services for more than 67,000 disasters each year from contributions made to its Disaster Relief Fund.

The new Donor Direct program makes four key changes in fundraising practices:

1. All Disaster Relief Fund solicitations (advertising, direct mailings, Web sites, telemarketing, etc.) will now use the following specific language: "You can help the victims of [this disaster] and thousands of other disasters across the county each year by making a financial gift to the American Red Cross Disaster Fund, which enables the Red Cross to provide shelter, food, counseling, and other assistance to those in need."

2. Donors to this fund will be asked to confirm that they understand how their contributions will be used before donations are accepted.

3. Once contributions have been received, donors will receive an acknowledgement that reconfirms their intent as well as the purposes for which contributions will be used, and provides instructions on what to do if they still have questions about how their donations will be used.

4. The Red Cross will implement a transition policy in situations where "contributions made around the time of a specific disaster may exceed the cost of the anticipated disaster assistance the organizations customarily provides." Potential donors will be informed that sufficient funds have been raised for the current disaster; they will be encouraged to contribute to their local chapter or to the Disaster Relief Fund to support victims of future disasters.

"The unprecedented response by the American people following the September 11th attacks--many from donors new to the Red Cross and other charities--has given most Americans a vested interest in how their donations are spent and for what purpose," says George Mitchell, former U.S. senator and independent overseen of the Liberty Fund. "The Donor Direct program is responsive to this new environment by helping to clarify donor intent, and will reassure contributors that their donations are being used in a manner consistent with the best traditions of the Red Cross." (To read more about best fundraising practices, see "Let Ethics Be Your Fundraising Guide" in the July 2002 issue of ASSOCIATION MANAGEMENT.)