Red Cross Chairman Confers with Senator Grassley’s Office on Proposed Governance Changes

Organization Has Asked Congress to Act Quickly To Amend Its Congressional Charter

WASHINGTON, Wednesday, November 15, 2006 — Bonnie McElveen-Hunter, the Chairman of the Board of the American Red Cross Board of Governors, and Karen Hastie Williams, the Chair of the Red Cross Independent Governance Advisory Panel, met today with the office of Senator Chuck Grassley, Chairman of the Senate Committee on Finance, and discussed the recent governance recommendations the Red Cross Board unanimously approved. This continues the ongoing dialogue between Senator Grassley and Red Cross leadership over the past six months.

The Red Cross requested Senator Grassley’s assistance to ensure swift passage of these proposed governance changes through amendments to its Congressional Charter. The last comprehensive governance overhaul of the Red Cross Congressional Charter was 1947. The organization appreciates Senator Grassley’s leadership on governance reform and looks forward to working with members of Congress in the coming days.

After a six-month long comprehensive governance review, the Board unanimously approved transformational changes to its role, size and composition, and other significant governance practices. The Board will strengthen its audit function, and has directed management to expand the organization’s “whistleblower” process and to create an organizational Ombudsman. "These recommended changes in governance and structural relationships build on a strong foundation of best practices in both the public and private sectors," according to Karen Hastie Williams, Chair of the Independent Advisory Panel.

Chairman McElveen-Hunter said, “I thank Senator Grassley for his strong leadership on issues related to Red Cross governance, oversight and performance. As the Senator noted in March of this year, ‘the American Red Cross is America’s charity in times of crisis.’ The Red Cross will do everything in its power to continue to be worthy of America’s sacred trust.”

McElveen-Hunter continued, “For these reasons, the Red Cross turns again to Senator Grassley, members of the Senate Finance Committee and other key members for the House and Senate for their bipartisan leadership to amend as soon as possible our 106-year old Congressional Charter for the third time in its history.”

Commenting on the Red Cross Board’s recent decisions, Senator Grassley noted, "I'm glad to see the Red Cross taking action on the important recommendations made by an independent panel. Public confidence has been shaken, and the reform effort needs to go the extra mile to help restore it. Continued independent oversight from an ombudsman-type figure would make a positive contribution to this effort. I appreciate the Chairman of the Red Cross, Bonnie McElveen-Hunter, as well as Karen Williams, the Chairman of the Independent Governance Advisory Panel, coming to Capitol Hill today. I hope Congress will act quickly to pass the legislation that's needed to change the governance and board of the Red Cross."

To review the Red Cross Board of Governors complete governance recommendations, “American Red Cross Governance for the 21st Century,” please go to http://www.redcross.org/report/bogoct2006.

The American Red Cross helps people prevent, prepare for and respond to emergencies. Last year, almost a million volunteers and 35,000 employees helped victims of almost 75,000 disasters; taught lifesaving skills to millions; and helped U.S. service members separated from their families stay connected. Almost 4 million people gave blood through the Red Cross, the largest supplier of blood and blood products in the United States. The American Red Cross is part of the International Red Cross and Red Crescent Movement. An average of 91 cents of every dollar the Red Cross spends is invested in humanitarian services and programs. The Red Cross is not a government agency; it relies on donations of time, money, and blood to do its work.

Related Links:

• AMERICAN Red Cross Board Report: Governance for the 21st Century [PDF]