Saturday, June 28, 2014

When Charity is a Business

The American Red Cross spent over $300 million after Hurricane Sandy and has now hired a law firm to fight a public request  filed with New York state, arguing that information about its Sandy activities is a "trade secret."  The Red Cross releases few details about how it spends money after big disasters. That makes it difficult to figure out whether donor dollars are well spent.

An attorney from the firm Gibson Dunn New York office has lodged an appeal with the attorney general to block disclosure of some of the Sandy information, citing the state Freedom of Information Law's trade secret exemption. The documents requested for scrutiny include "internal and proprietary methodology and procedures for fundraising, confidential information about its internal operations, and confidential financial information," wrote Gabrielle Levin of Gibson Dunn. If those details were disclosed, "the American Red Cross would suffer competitive harm because its competitors would be able to mimic the American Red Cross's business model for an increased competitive advantage,"

So a supposedly NON-PROFIT and HUMANITARIAN organization is worried that it "would suffer  competitive harm because its competitors would be able to mimic the American Red Cross's business model for an increased competitive advantage"? If the Red Cross wanted to help people wouldn't they want other organizations to copy their model and methods and so help more people and not kept as a trade secret or commercial confidentiality? Instead, this supposed humanitarian and non-profit organization is more worried about losing its market share of donor money.

From here

No comments: