Donors outraged by Australian Red Cross’s slow bushfire response
On January 22, Australian Red Cross gave an https://www.redcross.org.au/news-and-media/media-centre/media-releases/statement-on-response-22-jan update on its plans to spend the $115 million in donations received. While the Daily Mail’s headline of 10% budgeted for administrative costs drew knee-jerk reactions, criticisms about delays in distributing aid are valid. In disaster response, speed matters. Skeptics quip that “the cheapest form of charity is just handing the money out”
In the May 2016 Fort McMurray wildfire response, Canadian Red Cross got 30% of donations received out to victims in the first 30 days. Working with Canadian banks, Canadian Red Cross did an initial direct cash transfer on Day 5. With additional donations, it distributed a second cash transfer on Day 25. Through corporate partnerships, Canadian Red Cross e-transferred a total of $75 million to more than 38,000 registered households in less than 30 days.
Australian Red Cross response has been painfully slow. It began raising donations in July 2019 and only 6% has been paid out.
“We are keen to get the money out but we also need to make sure it’s getting where it’s needed. We must manage the money so we are not scammed … we want to make sure we are protecting donors’ funds.”
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“This is not in the spirit of what Australians gave that money”,
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