Topic > Changes at the American Red Cross - 971

(1)Changes at the American Red Cross have led to greater transparency at the agency. These changes include publishing your position on governance and ethics policy. Additionally, each board member is required to sign the Board Member Service Statement, which requires each member to actively participate for a minimum of 15 days per year with the organization, read the Code of Ethics, and abide by the politics. Other changes include the increased use of the Office of the Ombudsman since its implementation. During fiscal year 2012, 833 voters contacted the office compared to 354 in fiscal year 2008 (Ombudsman, 2012). This increase reflects an increase in the number of internal matters as the office continues to increase awareness of its function to ensure impartiality in all organizational business concerns. (2) The American Red Cross has encountered various problems regarding the management of the donation money. The lack of effective systems and policies has led to many missteps and opportunities for improvement. This essay will focus on the issues surrounding 9/11 relief donations, Hurricane Katrina donations, and ultimately the organization's appropriation of funds. First, the organization was hit with an unprecedented amount of donations due to the September 11 attacks. As a result, a separate fund was set up in an effort to track donations and expenses for the event. Due to the lack of systems to manage the money, less than half of the funds went to the intended victims. The remaining money was spent on infrastructure improvements within the organization for future tragedies. This angered many donors whose funds did not reach their intended recipients. Second, Hurricane Katrin… focus of the document… ombudsman for ARC dents, work still needs to be done regarding standardization of requirements for transparency among non-profit organizations receiving government assistance . Similar approaches to the organizational structure in place at ARC need to be used in other organizations. The attempt here is not to impede the progress of existing institutions, but to level the playing field for all organizations competing for monetary donations. As the number of organizations operating on donations increases, there is a limited pool of actual money for donations, especially in today's economy. Standardization of such organizational structures and commitments to transparency can provide greater assurance to donors that their funds will be used for their intended purpose and will reach those affected in need of assistance.