American Red Cross pocketed $125 million of Haiti earthquake fund
According to a report released by Iowa Sen. Chuck Grassley, American Red Cross pocketed close to $125 million of Haiti earthquake fund.
Based on a yearlong investigation by the Iowa Republican and his staff, Iowa Senator Chuck Grassley has reported that the esteemed charity organization Red Cross received an outpouring of donations after the 2010 quake, nearly $500 million, more than any other nonprofit organization received. But sadly, its all ambitious plans to build housing for the earthquake victims completely failed on the ground in Haiti. The Red Cross says it has provided homes to more than 130,000 earthquake victims. But the actual number of permanent homes the group has built in all of Haiti is just six. As per the charity organization's report, they spent $70 million on "program expenses" which include funds spent to oversee and evaluate its Haiti programs. In its earlier reports, Red Cross's had repeatedly told that, of the total funds it receives on humanitarian programs, it spends up to 9% (in recent case, it should be $45 million) on internal expenses. However, Grassley's office found that 25% of the total donations ($500 million) sent to Haiti or about $125 million were spent as fundraising and management expenses.