Summary
Group raised lots of money but spent it all and must borrow for first time in its history WASHINGTON - The American Red Cross says its response to hurricanes Katrina and Rita has depleted its Disaster Relief Fund, forcing it to borrow $340 million to cover costs - the first time in its 124-year history that the charity has sought a loan for disaster relief.
Of the $2 billion in donations the organization said it needs to handle relief efforts from the Gulf Coast hurricanes, it has received $1.3 billion and spent all of it.See the full content of this document
Extract
Disasters Put Red Cross in the Red
"Our best projections indicate we're going to have a shortfall of about $400 million," said spokeswoman Carrie Martin. "We're still determining how much Wilma will cost."
The financial problems come as some members of Congress and other relief agencies have begun to ...See the full content of this document
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