7 On Your Side takes criticism of Red Cross to local CEO

Wednesday, September 23, 2015
7 On Your Side takes criticism of Red Cross to local CEO
After hearing complaints about the Red Cross' handling of donations, 7 On Your Side's Michael Finney sat down with the local Red Cross CEO.

LAKE COUNTY, Calif. (KGO) -- People in the Bay Area have donated tens of thousands of dollars to the American Red Cross following the devastation of the Valley Fire in the North Bay. But with that money, comes criticism over how the organization has handled the relief effort.

7 On Your Side received dozens of emails and messages on my Facebook page and on Twitter from people upset with the Red Cross response and questioning how the donations would be spent. We took several of those messages to Bay Area Red Cross CEO Trevor Riggin, who was in Middletown, to see what he had to say.

DONATIONS: How to help victims of the Valley Fire where you live

Finney: "Ryan G. says, 'They keep the majority of the money.' Jim Y. says, 'He's heard reports that only 8 percent of the donations go to programs and services.' I looked up Charity Navigator and they say a tad over 90 percent goes to goods and services. What are the facts?"

Riggin: "For the Red Cross as a whole, an average of 91 cents of every dollar spent is going to our services in the community and it will be the same for this disaster."

Those writing to me are also concerned on where that money is being spent.

"We are committed that any money that is designated to be spent on California wildfires, will be spent in supporting the wildfires here in California," Riggin said.

PHOTOS: Crews battle massive Valley Fire

Another issue voiced in social media was Red Cross' rejection of volunteers and material donations.

Finney: "Kim M. says, 'Ask Red Cross why they're returning away donations left and right? They won't let anyone drop off donations at their fire sites."

Riggin: "So, we have changed that. So obviously we did put that messaging out and I think that fell into the category of we didn't have the right communication, the right coordination going on, especially at the fairgrounds."

The Red Cross admits it failed to build partnerships before the disaster occurred.

"Over the last several days, we've worked with the county and the fairgrounds to identify a partner - the center for volunteer and non-profit leadership is now taking a leadership role," Riggin said.

For instance, the Red Cross doesn't take donations of physical goods like blankets, but instead tries to partner with other charities that do. It is also pointed out that Red Cross is accused of having problems, not just at the Valley Fire, but around the country and around the world.

Finney: "Why is it that every time there is a major disaster, it seems like the Red Cross ends up in a major scandal? Hurricane Sandy a most recent one. Trucks -- you guys are accused of driving trucks around for PR purposes and not delivering goods. Haiti -- accused of wasting tens of millions of dollars. In San Francisco after the 1989 quake -- the mayor had to threaten to sue to get some of the money he felt that had been raised in quake victim's names. Why the history?"

Riggin: "So some of those past disasters, there's inaccuracies in those reports. But in every big disaster, there are huge challenges, they're disasters, there are struggles to meet the needs of enormous populations."

When given an opportunity, what Riggin really wanted to talk about was his volunteers. He said, "Our volunteers are just incredibly dedicated and they're working just amazing hours, they're working 14, 16 hours a day tirelessly, looking for opportunities to serve."

We asked about the salary for the organization's CEO. According to Charity Navigator records, you'll see

president and CEO of the American Red Cross, Gail McGovern, made $562,000 last year. Many viewers also asked us about this, so we asked Riggin. He said that figure is about right and said it was normal for an organization of this size.

Click here for full coverage on the Valley Fire.

PHOTOS: ABC7 News reporters at the Valley Fire

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