Issues with The Red Cross: The Need to Abandon Old Practices

Emergencies and natural disasters can strike at any time, anywhere. Added to the list of natural disasters like floods, fires, and hurricanes is a growing list of tragedies orchestrated by man. According to an infographic shared by the Business Insider, states with a low risk of weather-related events are not immune to disaster as they are typically ill-prepared. Although technology allows certain disasters to be predicted, they typically cannot be prevented. In case a disaster does occur, the governor of the affected state can request assistance from the Federal Government, who in turn implements the Recovery Support Functions (RSF) under the National Disaster Recovery Framework. The framework details the roles of the coordinating agencies, the primary agencies, and the supporting organizations. The American National Red Cross (ANRC) is named as a supporting agency; however, they are not a government agency. They are an independent, nonprofit institution pursuant to a congressionally issued charter. The charter designated the ANRC to carry out the terms of relief under the Geneva treaty, coordinate efforts for domestic and international disaster relief, uphold obligatory functions in support of the Department of Homeland Security’s (DHS) National Response Plan (NRP) and provide support to current and past military personnel and their families. Since the establishment of the Red Cross, the organization has made a tremendous impact in disaster-affected communities worldwide; however, frequent reports of poorly managed operations, inadequate response to disasters, and financial indiscretion raises questions about the organization’s credibility. This paper examines the current organizational structure, leadership, disaster response efforts, and financial management in order to make improvements and regain the trust of the American public.

This review was written to address concerns regarding the conduct of the American National Red Cross (ANRC) during the emergency response to Hurricane Katrina. It seeks to determine if the provisions of the federal charter may have played a role in the organization's poorly orchestrated relief efforts. It provides a historical summary of the ANRC charter including causes for past revisions. Congress decided to review the actions of the ANRC after the Federal Government received harsh criticism for their role in the failed emergency response. Accusations included inaccurate data handling and a gross miscalculation of how many evacuees were staying in hotels, racially insensitive gestures by organizational volunteers, and distributing financial assistance to individuals who did not qualify. A committee was appointed to review the governance and reporting of the Red Cross. The committee found faults in the organization's capacity to coordinate and execute plans, and the poorly organized shelter process. Another report scrutinized the lack of effort taken to provide assistance to victims in minority areas. Two bills were introduced and later signed to improve governance structure and clarify the role of the Board of Governors. The author of the report, Kevin Kosak, worked for eleven years doing nonpartisan congressional research. He does not show any bias in his reports as they are purely informational. It will be useful in identifying past mistakes of the ANRC to prevent them from happening in the future.

This book describes the controversy surrounding the ANRC’s management of charitable donations following the September eleventh terrorist attacks. The Red Cross once again found itself at the center of controversy after they were accused of soliciting donations for the victims of 911, and subsequently squandering the funds for future needs. Making matters worse, New York has a law prohibiting the use of charitable funds for anything other than what it was raised for. Donations collected by the Red Cross exceeded one billion dollars, of which a substantial amount was allocated for future projects. People who donated money to help the victims of 911 accused the Red Cross of being deceptive in their plan for the funds. In the following days, the president of the Red Cross resigned her position but was still subject to a congressional hearing in which Congress denounced the organization’s decision to withhold over two million dollars meant for victims of 911. Under mounting pressure, the Red Cross ensured the public that their donations would be used to help the families and victims of 911. The book was written by American economist, Eugene Streuerle, as an economic view of philanthropy. Streuerle has served on numerous boards, authored 18 books, and was a recipient of the TIAA award for exceptional scholarly writing. This book is a good example of why Americans are losing confidence in nonprofits. It is important to see how the damage was done so it can be repaired.

Smith shares findings from her research on how volunteers for the Red Cross gain satisfaction from their experiences and conversely, what experiences caused them dissatisfaction. The findings correlate with reports of unorganized relief efforts experienced by the public. When asked about dissatisfaction, the top responses included disorganization and poor communication, and lack of instruction. According to some volunteers, a debriefing is supposed to be done before and after relief efforts, but they claim they have never witnessed it in practice. Surprisingly, there were several complaints by managers and volunteers about the mistreatment of the volunteers. On one occasion, a volunteer reported spending the night in a broom closet because he was asked to give his to a Red Cross management team, and others claim they rarely hear “thank you” from their leadership team, and do not feel appreciated by their managers. The findings are significant as they demonstrate unhealthy behaviors known to cause organizational dysfunction. If the seemingly minute problems of poor communication and lack of leadership are not corrected, the Red Cross will continue to perform poorly in emergent situations. The study was conducted by Smith and Grove less than three years ago, therefore the information should still be applicable. The importance of this study was affirmed when it was presented at a research association for Nonprofits, and at the Public Administration's 2016 Annual Conference.

Repeat allegations of the ANRC’s inability to adequately respond to disasters prompted the Government Accountability Office (GAO) to conduct a review of their response procedures. Although the ANRC is subject to government oversight, it does not include disaster response performance. The GAO reviewed three different weather-related disasters that occurred in varying regions so that their findings would be generalized. The report identifies factors that most likely led to ineffective response services including: poor communication regarding a plan, unclear policies, unprepared, inefficient coverage in rural areas or no coverage at all, and a deficient number of volunteers. Metrics are available for the purpose of evaluating the performance of disaster response; however, the Red Cross is not required to use them. Agency officials claimed that they have an internal performance review process, but results are not shared publicly. The GAO recommends that Congress to establish an external review board to oversee the performance of the ANRC, and those findings to be shared with the public. The finding and suggestions made by the GAO will benefit the process improvement strategies. The GAO is a credible source as they are required by Congress to supply nonpartisan feedback. 

The Mississippi Center for Nonprofits is a management training and resource center who makes it their mission to help other nonprofits be successful. Their training topics include but are not limited to program effectiveness, accountability, finance management, transparency, technology, and public policy. They developed a certification program that uses best practices to educate members of other nonprofit organizations. The resource guide can be used as a reference tool for any nonprofit agency that struggles with poor organization and or public dissatisfaction. The center has established several notable partnerships including the National Council of Nonprofits.

Hager makes a point in his editorial about the need to abandon old practices as society shifts and the expectations of volunteers change. He argues that current volunteer engagement is merely mediocre, and suggests that nonprofit administrators consider using “emergent strategy.” An emergent strategy is based on change; it develops regardless of the intended strategy. They give organizations the ability to modify their current plan to accommodate and adapt to social change. The idea is not to abandon policies, it is to review them, and update them according to what works. There seems to be a general problem of communication between ANRC employees, and between employees and volunteers. The idea of an emergent strategy for the Red Cross is one that emphasizes building relationships among volunteers and between volunteers and their managers. Strong relationships foster better communication. This insight will be helpful in developing new ways to communicate based on what works for the volunteers. Hager is an associate professor in the School of Community Resources and Development at ASU where he co-directs studies in nonprofit leadership and management. He is an expert in organizational behavior and nonprofit organizations and the recipient of multiple awards for his scholarly contributions.

References

1. Career Path Profile: Kevin R. Kosar. (2017). Retrieved from http://www.kevinrkosar.com/RL33314_Kosar_Congressional_Charter_of_the_Red_Cross_03-15-2006.pdf
2. Fema.gov. (2011). FEMA Disaster Declaration Process. [online] Available at: https://www.fema.gov/pdf/media/factsheets/dad_disaster_declaration.pdf [Accessed 9 Feb. 2019].
3. Mark Hager | iSearch. (2019). Retrieved from https://isearch.asu.edu/profile/1271574
4. Our Federal Charter How The American Red Cross Achieved its Current Role. Retrieved from https://www.redcross.org/content/dam/redcross/National/history-federal-charter.pdf
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8. Summary of the Geneva Conventions of 1949 and their Protocols. (2011). Retrieved from https://www.redcross.org/content/dam/redcross/atg/PDF_s/International_Services/International_Humanitarian_Law/IHL_SummaryGenevaConv.pdf
9. This Eye-Opening Infographic Shows How Prepared Every State Is for A Natural Disaster. (2014). Retrieved from business Insider.com