The American Red Cross announced plans Monday for major changes to its organizational structure that will allow the 125-year-old organization to more effectively govern itself in a post-Katrina, post-Sept. 11 world.
The national nonprofit’s board unanimously approved multiple recommendations to its governance structure — the first changes in 60 years. Recommendations include explicitly delegating responsibilities for day-to-day operations to full-time, professional staff, cutting the board down from 50 to between 12 and 20 members and reducing the influence of presidentially appointed overseers.
The reforms come after a six-month review of the organization’s operations. The Red Cross was one of the most visible responders during the Hurricane Katrina aftermath, raising $2 billion and mobilizing 235,000 volunteers. But critics charged the nonprofit responded too slowly in some low-income neighborhoods and was unwilling to work with other nonprofit groups. In the wake of Sept. 11, the organization was criticized for earmarking future disasters donations meant for Sept. 11 victims.
The Red Cross itself acknowledged in a recent report that it faltered as a result of overwhelmed volunteers, inflexible attitudes and inadequate anti-fraud measures. Most of the reforms, some of which must be approved by Congress, should be in place by 2012.
Locally, the American Red Cross of the National Capital Area said the reforms won’t make a visible impact on their day-to-day operations.
“We have our own board that we are accountable to,” said Cameron Ballantyne, spokesman for the local chapter.
Ballantyne also said the organization is comfortable with its response to Hurricane Katrina. Local chapters raised more than $2 million in the wake of the disaster and assisted more than 8,000 evacuees in the Washington region. The local chapter also works with area nonprofits on a regular basis to assist disaster victims, he said.
“Here locally we did just fine,” he said. “One of the other criticisms is we stick to our own, but that’s not the case here.
“It really doesn’t matter where they get the help as long as they get it.”
The Associated Press contributed to this report.
