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November 8, 2001
EDELMAN PROVIDES CRISIS PR
TO RED CROSS
 

The Red Cross has turned to Edelman PR Worldwide in the wake of the controversy triggered by its decision to withhold $264 million of the $564 million pledged or contributed to its Liberty Fund set up for victims of terror attacks.

Darren Irby, director of disaster PA at the Red Cross, said the group hired Edelman because it was swamped by media inquiries.


Red Cross ad says organization has responsibility for 'future terrorist threats.'

Leslie Dach, vice chairman/ general manager of Edelman's Washington, D.C., office, is leading the account. He is assisted by Jere Sullivan, executive VP/deputy GM in D.C., and Loretta Ucelli, who heads Edelman's crisis group in New York.

The Red Cross maintains that contributions made to the Liberty Fund also were intended to deal with future terror victims.

President Bernadine Healy, who is stepping down at yearend, told Congress on Nov. 6 that it would be fiscally irresponsible to just cut a check for the families of victims of Sept. 11 without putting aside funds for future attacks.

The organization points out that Liberty Fund ads stated that the "American Red Cross has a responsibility to participate in civilian preparedness for future terrorist threats. This is a focus of our fund raising and our programs. The aftermath of Sept. 11 will be with us well into the future."

Congress doesn't buy that pitch. Rep. Billy Tauzin (R-LA), chairman of the House Committee on Energy and Commerce, accused the organization of misleading donors who believed they were helping victims of the World Trade Center, Pentagon attacks and the Pennsylvania hijacked plane crash.

Bart Stupak (D-MI) accused the Red Cross of taking advantage of a very tragic situation.

New York Attorney General Elliot Spitzer said the monies in the Liberty Funds should be distributed equitably so than no victim is left unassisted.

 

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Mike Paul, president, MGP & Associates PR (11/8):
The American Red Cross seems a bit "bloodied" these days. Edelman PR will have trouble spinning this one because ARC's charter has always allowed it to raise money during a large tragedy and use a portion of those funds raised for future needs - inlcuding overhead. It's amazing what the public learns when the media microscope is pointed on a large nonprofit organization. Bottom line: it's time for ARC's charter to change.


 

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