Experts said there is virtually no way to monitor how nonprofits operate, nor for governments or disaster victims to hold them accountable for mismanagement
New York, June 5.─ International aid groups largely operate in a “black hole” of accountability, charity watchdogs have said, as fresh allegations emerged this week of the Red Cross’s misrepresentations of its accomplishments after Haiti’s devastating earthquake in 2010.
Officials at nonprofit watchdogs were not surprised by a ProPublica and NPR investigation which found the Red Cross had misrepresented its efforts in Haiti and delivered only a portion of the $488m it raised to Haitians, in spite of a pledge to give “91 cents” of every dollar.
The Red Cross disputes the report, saying the accusations are overblown and unfair characterizations of a program beset by the challenges that all aid groups face in Haiti. But the organization has faced accusations of mismanagement before, including withholding funds after 9/11, delays of emergency supplies after hurricane Katrina and disarrayed and selective relief after hurricane Sandy. Indeed, members of Congress are currently waiting for the results of an audit into the American Red Cross’s disaster relief efforts.
Experts said there are virtually no ways to monitor how nonprofits operate, nor for governments or disaster victims to hold them accountable for deliberate or accidental mismanagement.
“There’s a lot of waste and abuse that’s allowed to go on just because there is no accountability,” said Daniel Borochoff, president of the nonprofit CharityWatch. They exist in “a black hole” of accountability, he said, especially in the realm of international grants ...
[ Full text ]