Red Cross’ local chapter reports no surplus funds

Thursday, Nov. 15, 2001 | 10:03 a.m.

The American Red Cross Clark County Chapter does not have the dilemma of its national office, which has scrapped a much-maligned plan to create a huge money reserve from donations made in the wake of the Sept. 11 terrorist attacks.

In fact, donations from direct mail pleas are down this month for the local chapter that has, at donors' requests, sent $3.5 million to the organization's Washington headquarters to help terrorist victims, mostly in New York.

"No, we do not have a surplus," local Red Cross spokeswoman Trish Williamson said Wednesday. "After Oct. 30, we gave donors the option of whether they wanted their donations to specifically help local displaced workers.

"What it comes down to is donor intentions being the No. 1 priority. If they want the money used here, it stays here. If they want it to go elsewhere, it goes to where they want it to go."

As a result, some local individuals and businesses that had made donations to national efforts through the local Red Cross office have asked that some or all of their gifts be diverted back to Las Vegas.

For example, the MGM-Mirage got $100,000 of its $1 million donation to national efforts back to help out-of-work Las Vegans make their rent payments.

Days after making the huge donation to East Coast victims, the gaming giant was sharply criticized for joining other resorts in laying off large numbers of workers in the wake of diminished visitor volume.

Nevada Power asked that its $25,000 gift earmarked for New York stay at home to help displaced Las Vegas workers, Williamson said. Entertainer Danny Gans did the same thing with his $75,000 pledge, as did the Las Vegas Chamber of Commerce with a $10,000 donation, Williamson said.

Still, Williamson said, the diverted funds do not create a big pool of reserve money, which was the case with money sent to the national headquarters. The local Red Cross is looking for additional gifts heading into the busy Christmas season.

"We don't know yet what it (the unspecified drop in direct mail donations) will mean to us," Williamson said. "We are going to have to wait and see. I just hope that people will continue to make donations, not only to the American Red Cross but to all charities, to help the community."

Donated money intended for use in Las Vegas can be spent not only to help locals affected by the terrorist attacks and the subsequent economic slowdown, but also for victims of current and future local disasters, such as fires, she said.

The national office of the American Red Cross, perhaps concerned that record incoming donations would slow or stop, had decided to set aside $200 million from the Liberty Fund, which had collected $543 million.

The Red Cross had planned to use that money to help victims of future terrorist attacks or other disasters. However well meaning that plan was, it drew heavy criticism from those who argue that the money was donated with specific intent to help only people affected by the Sept. 11 attacks.

The Red Cross has stopped accepting donations to the Liberty Fund, saying the amount already collected is sufficient.

The charity has distributed about $121 million in direct aid to Sept. 11 victims and their families. About 2,500 families have received Liberty Fund benefits, averaging about $25,000 per household.

The Red Cross national office has said it will return donations to any contributor who requests a refund.