I must admit that I'm very confused about charities. After reading several articles by Richard W. Walden [example], it seems that the American Red Cross isn't? what most people think it is:
This skewed giving to Red Cross would be justified if the organization had to pay the cost of the 300,000 people it has sheltered. But FEMA and the affected states are reimbursing the Red Cross under preexisting contracts for emergency shelter and other disaster services. The existence of these contracts is no secret to anyone but the American public. The Red Cross carefully says it functions only by the grace of the American people - but "people" includes government, national and local. What we've now come to expect from a major disaster is a Red Cross media blitz.
Many people prefer to give to faith-based organizations. But then this comes out: FEMA Plans to Reimburse Faith Groups for Aid.
The Federal Emergency Management Agency said yesterday that it will use taxpayer money to reimburse churches and other religious organizations that have opened their doors to provide shelter, food and supplies to survivors of hurricanes Katrina and Rita.
FEMA officials said it would mark the first time that the government has made large-scale payments to religious groups for helping to cope with a domestic natural disaster.
So what do these charity groups actually do with the money they receive? [via]
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