Oct 30, 2006 8:36 am US/Pacific
Red Cross Announces Major Management Overhaul
NEW YORK (AP) ―
Sparked by criticism of its response to Hurricane Katrina, the American Red Cross released plans Monday for sweeping changes in the way it governs itself -- measures that include slashing its 50-member board by more than half and reducing the influence of presidentially appointed overseers.
Some of the changes in the 60-year-old governance structure can be implemented unilaterally. Others will require approval from Congress for revisions in the organization's congressional charter.
The changes, approved unanimously by the existing 50-member board of governors, result from an unprecedented six-month review spearheaded by a panel of outside experts.
Highlights of the changes that would need congressional approval include:
--Explicitly delegating responsibility for day-to-day operations to the Red Cross' full-time professional management, with the board focusing primarily on longer-term strategic oversight.
--Reducing the board to between 12 and 20 members by March 31, 2012.
--Creating a single category of board members. Now, some are nominated by local chapters, others, including the board chairman, are appointed by the U.S. president.
--Shifting seven of the presidentially appointed governors into a newly created Cabinet Council that will be advisory.
The board would also ask management to improve and expand awareness of the organization's "whistleblower" process among Red Cross employees and volunteers.
The 125-year-old charity was by far the biggest player in responding to Hurricane Katrina, raising $2 billion, mobilizing 235,000 volunteers and helping hundreds of thousands of displaced people.
Yet it was sharply criticized for responding too slowly in some low-income, minority areas, for over-reliance on inexperienced staff, and for reluctance to work closely with other nonprofits. Critics included experts from overseas Red Cross groups, members of Congress and nonprofit executives.
The Red Cross itself, in a candid report of its own, acknowledged that shortcomings included overwhelmed volunteers, inflexible attitudes and inadequate anti-fraud measures.
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