‘The difference between the real number and the one the Red Cross has been repeating “would be very stark,” says Daniel Borochoff of the watchdog group CharityWatch. “They don’t want to be embarrassed.”
The 17 percent the Red Cross has spent on average for fundraising expenses is below the ceilings set by nonprofit watchdogs. The Better Business Bureau Wise Giving Alliance, for example, says that fundraising expenses should not exceed 35 percent of related contributions.
Of the more than $3 billion that the Red Cross spent last year, two-thirds was spent not on disaster relief but rather on the group’s blood business.
The charity spent $2.2 billion on the blood business, most of which went to employee wages and benefits. By contrast, the charity spent $467 million, or 14 percent of total spending, on its famous domestic disaster response programs, including the expensive Sandy relief effort.’