Red Cross Liberty Fund Update

Fund to be solely used for people affected by September 11 tragedies
Family Gift Program extended to a full year
Database to be created, making it easier for victims to get help

Worcester, MA. November 14, 2001 - The American Red Cross announced a series of changes regarding its Liberty Disaster Fund to support 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 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 Red Cross officials 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 financial support through its family gift cash program for at least a full year. The forthcoming checks will provide basic living expenses such as housing, food, utilities, tuition, childcare and healthcare. 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 will provide the names of the 25,000 families it has helped to a database that will be shared among other 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 people affected by the September 11 tragedies," said Harold Decker, who was appointed CEO of the American Red Cross two weeks ago. " The individuals affected by 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. " Now we must 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."

"We are moving rapidly to accelerate service delivery to the families of victims," said Bob Bender, chief executive officer of the American Red Cross in Greater New York. "We are hiring 200 case workers to work more closely with affected families and provide the help they need. We also have trained 800 mental health workers in the last two days and are investigating a grant program to help small businesses in the affected areas. And, our Long-Term Recovery Unit will be staffed by several hundred full-time staff to continue working with the families affected by the disaster for as long as they need assistance."

Lisa Piehler-Jones, Executive Director of the American Red Cross of Central Massachusetts added, "Here in Central Massachusetts we continue to support this disaster relief effort by training and deploying volunteers. In fact today, five licensed nurses and mental health professionals left for a two-week volunteer assignment. We also continue to assist local families affected by the events of September 11-- by providing grief counseling, funeral costs, transportation to the disaster site and cash grants to cover monthly living expenses."

Decker reiterated that the Red Cross has ceased active fund raising for the Liberty Fund and that it will remain a separate, segregated fund. He also said that the U.S. Army Audit Agency would be invited to audit the fund along with KPMG LLP and that audit results would be made public.

The American Red Cross is dedicated to saving lives, easing suffering and restoring hope at home and around the world. In the past year, the American Red Cross of Central Massachusetts assisted over 1,000 people affected by house or apartment fires, certified almost 50,000 people in vital lifesaving skills, trained 500 Certified Nursing Assistants and Home Health Aides and provided free 24 hour emergency communications and counseling services for military personnel and their families. To learn more about the American Red Cross of Central Massachusetts log onto www.redcrossworcester.org.

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