Red Cross Misrepresented How Donors’ Dollars Are Spent
December 4, 2014 | Read Time: 1 minute
The American Red Cross has misrepresented to donors how their dollars are used, claiming it spends less on fundraising and other overhead costs than it does, according to an investigation by ProPublica and NPR.
On its website and in public comments by top executives, the Red Cross said that 91 cents of each dollar donated goes directly to services. But a review of financial statements shows that fundraising costs averaged 17 cents per donated dollar during the last five years. One year, the fundraising expenses alone were 26 cents of every donated dollar.
The Red Cross issued a statement saying it stood by the figure and that was no attempt to mislead the public.
