Press Release - Grassley Comments on Red Cross Governance Reforms
Press Release - Grassley Comments on Red Cross Governance Reforms
Sen. Chuck Grassley, Chairman of the Committee on Finance, issued a comment on the announcement today by the Board of Governors of the American Red Cross regarding changes it plans to make to modernize its governance structure and better support the charitable mission of the Red Cross.
Sen. Grassley began his scrutiny of the Red Cross in the months following the 9-11 terrorist attacks when questions were raised about how the organization was using donations made to assist with recovery efforts. As chairman of the Senate Committee responsible for tax policy, Sen. Grassley has continued to conduct a broad-based review of the non-profit sector and has won approval of legislative reforms aimed at certain abuses. He continues to examine where policy changes may be needed to improve the governance of such tax-exempt organizations by their boards of directors.
Grassley comment
"I'm pleased with the vote by the board of the Red Cross to make real changes to the governance at the American Red Cross. The board has followed the recommendations of the Independent Governance Advisory Panel to make the changes necessary that will help ensure that the Red Cross has the necessary leadership and governance to succeed. Certain incidents have shaken public confidence in the Red Cross, and the Red Cross needs to go the extra mile with governance reforms to ensure public confidence.
"My work on oversight of nonprofit organizations has made it clear that getting the governance right is critical if a charity is going to succeed in its mission. It's good news that the Red Cross' board recognized that a Band-aid won't do, and that the American people expect the best from an organization that so many have supported with time and money.
"The Red Cross also has taken good steps to support whistleblowers who are speaking out at problems they are seeing at the Red Cross. Encouraging and acting on the reporting of whistleblowers will make the Red Cross a stronger institution. Going forward, I want to make certain that the Red Cross also has in place reforms that will contribute to greater transparency and openness to the Congress and the public. The Red Cross and Congress should give strong consideration to creating an ombudsman at the organization.
"I look forward to meeting with the Chairman of the Red Cross, Bonnie McElveen-Hunter, as well as Karen Williams, the Chairman of the Independent Governance Advisory Panel, on November 15 to go over the details of the governance changes. My hope is that we can move quickly and have Congress act to pass the necessary statutory changes to change the governance and board of the Red Cross in keeping with the board's actions."
http://grassley.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=5207&Month=10&Year=2006