BEND, Ore (CNN/Money) – Hurricane Isabel is speeding toward the East Coast, and the American Red Cross is asking for donations for its Disaster Relief Fund, which is now empty.
More on Isabel
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"A comfortable place for the relief fund is around $55 million," said spokesperson Darren Irby. "But it's at zero -- it's empty," explaining that "silent" disasters, such as fires and floods, have depleted the relief fund but haven't attracted the kind of attention (and donations) that come from high-profile events.
According to the National Hurricane Center's latest estimates, Isabel will make landfall near North Carolina's Outer Banks some time Thursday.
When it does, the Red Cross will be on the scene with food, clothing, shelter and medicine, among other things. "We're going to still be there," said Irby. The Red Cross would borrow from its other funds to pay for these basic needs.
But without donations, the Red Cross won't be able to provide the longer-term services victims of disasters often depend on -- such as first month's rent, furniture, pots and pans, and linens.
"If the storm continues to be as powerful as it looks like it will be we're talking hundreds of shelters that will be set up," said Irby.
In August, the Red Cross warned that its relief fund, which peaked in May 2002 at $84 million, was at an 11-year low, with only $1.2 million available.
Between July 1, 2002 and June 30, 2003, the Red Cross spent $114 million on disaster relief, while taking in only $39.5 million. One large disaster could easily cost $80 million, according to Irby.
The Red Cross spent $81 million, in 1992 dollars, on Hurricane Andrew, and is bracing itself for an even higher price tag for Isabel. (See "Isabel still packing dollar punch".)
Tough time for fundraising
Like many non-profits, the national Red Cross, along with its local chapters, has been struggling to bring in donations during a weak economy.
The organization has also had to deal with a few public relations disasters, including criticism of how it handled the $1 billion fund to aid victims of the Sept. 11, 2001, terrorist attacks, and Food and Drug Administration findings that its blood-collection unit had violated safety standards.
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The American Red Cross says there is no money in its disaster relief fund. Bob McDonald, CFO of the organization, talks about the hard times and preparations for the arrival of Hurricane Isabel.
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"We've had our share of public findings but we have also done a lot over the past two years to make sure we're on the right track," said Irby.
The Red Cross's nearly $3 billion annual budget covers far more than just disasters. Blood donations, CPR training, and water and sanitation are just a few of the other services administered by the Red Cross, which depends almost exclusively on public donations.
Although donations are often their highest following a disaster, how much is donated depends on the nature of the disaster, where it takes place, and the amount of media coverage, among other things. "Following all of those tornadoes in the Midwest this spring we took in something like $7 million," said Irby, adding that it was far less than he would have expected for that kind of disaster.
The organization is asking individuals to make cash donations via the American Red Cross Web site or by calling 800-HELP-NOW. Those interested in giving blood -- which is also in short supply -- should call 800-GIVE-LIFE
Corporations interested in making bulk donations should call 866-GET-INFO.
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