The American Red Cross (ARC) has encountered challenges with handling donation money. These challenges have cast doubt regarding the ability for the ARC to take donations and disburse them appropriately. I will describe some of the money problems observed in the case.
First, after the September 11th attacks the ARC create a separate fund to receive donations marked to the victims. However, the money from this fund was utilized to increase the American Red Cross’s infrastructure to respond to disasters. According to Ferrell, Fraedrich, and Ferrell (2013), “the ethical issue of asking for funds for 9/11 relief efforts, and then appropriating those funds for other purposes, created an explosive debate” (p. 488).
Second, the Hurricane