Much of Red Cross fund for Sandy aid still unspent

By Jennifer Peltz

Associated Press

Published: Tuesday, May 28 2013 6:58 a.m. MDT

FILE - In this Jan. 4, 2013, file photo, Sen. Charles Schumer, D-N.Y., right, accompanied by Sen. Kirsten Gillibrand, D-N.Y, enter a news conference on Capitol Hill in Washington, to discuss Superstorm Sandy aid. Conservatives and watchdog groups are mounting a "not-so-fast" campaign against a $50.7 billion Superstorm Sandy aid package that Northeastern governors and lawmakers hope to push through the House the week of Jan. 14, 2013. Their complaint is that lots of that money actually will go toward recovery efforts for past disasters and other projects unrelated to the late-October storm. The measure bill includes $150 million for what the Commerce Department described as fisheries disasters in Alaska, Mississippi and the Northeast, and $50 million in subsidies for replanting trees on private land damaged by wildfires.

Jacquelyn Martin, Associated Press

Enlarge photo»

NEW YORK — Seven months after Superstorm Sandy, the Red Cross still hasn't spent more than a third of the $303 million it raised to assist victims of the storm, a strategy the organization says will help address needs that weren't immediately apparent in the disaster's wake.

Some disaster relief experts say that's smart planning. But others question whether the Red Cross, an organization best known for rushing into disasters to distribute food and get people into shelter, should have acted with more urgency in the weeks after the storm and left long-haul recovery tasks to someone else.

"The Red Cross has never been a recovery operation. Their responsibility has always been mass care," said Ben Smilowitz, executive director of the Disaster Accountability Project, a nonprofit group that monitors aid groups. "Stick with what you're good at."

Storm victims could have used more help this past winter, said Kathleen McCarthy, director of the Center for the Study of Philanthropy and Civil Society at the City University of New York.

"People were cold. Homes mildewed. There wasn't enough decent housing," she said. "Given the lingering despair, it's hard to understand the argument that 'We are setting that money aside.'"

As Americans open their wallets to assist tornado victims in Oklahoma, the Red Cross is again emerging as one of the most important relief organizations on the ground and also one of the most prodigious fundraisers for victims. As of Thursday, it had raised approximately $15 million in donations and pledges for the tornado response, including a $1 million gift from NBA star Kevin Durant and numerous $10 donations, pledged via text.

The Red Cross was also the No. 1 recipient of donations after Sandy. The organization said it still had $110 million remaining from its pool of storm donations as of mid-April, which were the most recent figures available.

Red Cross officials pledged that all the money in its Sandy fund will eventually be spent on the storm recovery and not diverted to other disasters or used to support general Red Cross operations.

Over the next few months, the Red Cross expects to spend as much as $27 million of its remaining Sandy donations on a program providing "move-in assistance" grants of up to $10,000 to families displaced by the storm. About 2,000 households have been assisted by the program so far, with an additional 4,000 waiting for an eligibility determination.

Part of the delay in spending, officials said, is to wait to see how the hardest-hit states allocate a $60 billion pot of federal relief dollars and address gaps in the government aid package.

"We are waiting to see where the greatest need is going to be over time," said Josh Lockwood, CEO of the Red Cross Greater New York Region. "We are more concerned with spending our resources wisely rather than quickly."

Some disaster relief experts said holding funds in reserve was indeed a smart move.

Much of the toughest and most expensive relief work after a natural disaster comes not during the initial months but during the long-term rebuilding phase after the public's attention has waned and new donations have stopped flowing, said Patrick Rooney, associate dean at the Indiana University Lilly Family School of Philanthropy.

"It would be splashier, perhaps, to spend the money right away while the media is still there and the donors are still looking," he said. "But the important needs, from the cost perspective and the recipient perspective, take place after the headlines are gone and after the cameras are gone."

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