Fund to be solely used for people affected by September 11 tragedies

The American Red Cross has announced a series of sweeping changes regarding its Liberty Disaster Fund to increase support for people affected by the September 11 terrorist attacks while also making it easier for them to access needed help. The Red Cross established the Liberty Fund shortly after the September 11 tragedies as a separate, segregated account to fund relief services related to terrorism.

The changes adopted by the American Red Cross National Board of Governors at the recommendation of the organization's new leader and CEO Harold Decker will make the immediate and long-term needs of the people affected by the September 11 terrorist attacks the sole focus of the Liberty Fund, which has received $543 million to date. Top officials at Red Cross national headquarters said programs that had been part of the Liberty Fund such as the Strategic Blood Reserve, community outreach and Armed Forces services will continue but will be funded from sources other than the Liberty Fund.

The Red Cross will provide families whose loved ones were lost or seriously injured in the September 11 attacks approximately $111 million in additional financial support before the end of the year through its family gift cash program, extending financial support from the initial three-month period to a full year. The forthcoming checks will provide another six months of basic living expenses such as housing, food, utilities, tuition, childcare and healthcare. The Red Cross projects that it will have spent about $275 million overall by year's end to help people affected by the disasters, half of what has been received in the Liberty Fund. In January 2002, the organization will present a plan detailing how the remaining funds will be spent consistent with the changes announced recently. Because victims of disasters often require years of support before they are able to resume relatively normal lives, funds must be distributed prudently and in the manner that meets the needs of all the people and takes into account all relief resources.

The Red Cross also has decided to provide the names of 25,000 families it has helped to a database that will be shared among relief agencies. This step will build on coordination already underway among the agencies and public officials. These coordinated efforts will make it easier for families of victims to get the help they deserve. In order to protect the confidentiality of these families, the organization said the database will be restricted to participating relief agencies and that affected individuals will be given an opportunity to opt out of the program without jeopardizing any help from the Red Cross.

"Americans have spoken loudly and clearly that they want our relief efforts directed at the victims of the September 11 tragedies," said Harold Decker, who was appointed CEO of the American Red Cross two weeks ago. "We deeply regret that our activities over the past eight weeks have not been as sharply focused as America wants, nor as focused as the victims of this tragedy deserve. The victims of this terrible tragedy have been our first priority, and beginning today, they will be the only priority of the Liberty Fund."

"The people of this country have given the Red Cross their hard-earned dollars, their trust and very clear direction for our September 11 relief efforts," said David T. McLaughlin, chairman of the American Red Cross Board of Governors. "Regrettably, it took us too long to hear their message. Now we must change course to restore the faith of our donors and the trust of Americans and, most importantly, to devote 100 percent of our energy and resources to helping the victims of the terrorist attacks."

In another change, the Red Cross board also decided that the operating costs for the Liberty Fund, including the toll-free lines that have been used to locate victims, will be funded to the extent possible by the interest earned on the fund balance.