Please, Give to Charity. Just Not the Red Cross.

The Red Cross money pit
By Richard M. Walden, Richard M. Walden is president and CEO of Operation USA, a 26-year-old international disaster relief agency based in Los Angeles. Website: www.opusa.org.

WITH HURRICANE RITA now making news, it's time for Americans to take a more disciplined look at their tremendous generosity. As of last week, the American Red Cross reported that it had raised $826 million in private funds for Hurricane Katrina victims. The Chronicle of Philanthropy has the total figure at more than $1.2 billion for all relief groups reporting. So the Red Cross received about 70% of all giving.

This percentage was no doubt bloated by the Federal Emergency Management Agency's mystifying release to the media of the names of 19 faith-based charities (plus the Red Cross, Humane Society and three lesser-known groups) to which the public should donate — rather than the much wider group of established relief agencies.

This skewed giving to Red Cross would be justified if the organization had to pay the cost of the 300,000 people it has sheltered. But FEMA and the affected states are reimbursing the Red Cross under preexisting contracts for emergency shelter and other disaster services. The existence of these contracts is no secret to anyone but the American public. The Red Cross carefully says it functions only by the grace of the American people — but "people" includes government, national and local. What we've now come to expect from a major disaster is a Red Cross media blitz.

The national Red Cross reports it spent $111 million last year on fundraising alone. And it's hard to escape the organization's warning of Armageddon if you don't call in a credit card number or send a check or donate blood (which it resells to the tune of more than $1.5 billion annually, part of its $3 billion in income)....

The Red Cross expects to raise more than $2 billion before Hurricane Katrina-related giving subsides. If it takes care of 300,000 people, that's $7,000 per victim. I doubt each victim under Red Cross care will see more than a doughnut, an interview with a social worker and a short-term voucher for a cheap motel, with a few miscellaneous items such as clothes and cooking pots thrown in.

The Red Cross' 3 million unpaid volunteers, 156,000 of whom it says are deployed in Hurricane Katrina, are salt-of-the-Earth Americans. But asking where all the privately collected money will go and how much Red Cross is billing FEMA and the affected states is a legitimate question — even if posed by the president of a small relief agency.

I gave my Katrina donation to Second Harvest.