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Thursday, July 26, 2007

IRS Take-Over of Red Cross Now Complete

I wrote yesterday that Kevin Brown, Acting Commissioner of the IRS, felt that the IRS was "largely ineffective" at regulating charities. This apparently won't be his problem anymore. He has followed his former boss, Mark Everson, to the Red Cross, where he will now serve as COO. This makes at least 4 former IRS alums at the top of the Red Cross org. chart.

I know new leaders like to surround themselves with people they can trust, but I wonder how this placement of IRS staffers at the highest levels of the Red Cross is playing at the chapter level of the non-profit. They're the ones that, as Mr. Everson told me, "do the real work at the Red Cross."

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7 Comments:

Anonymous Toby said...

since when did the IRS become the place from which to recruit innovative and smart managers, quick to react to unpredictable situations. ugh.

8:18 AM  
Anonymous Hill Watcher said...

I think there's a bigger issue here, Trent, than what the field personnel think about all these outside hires, and it is this. All of these new hires are not just IRS alums, but Republican Bush appointees. They are part of this administration, maybe not in the same way Karl Rove is, but in a way that matters in this town. And if/when Hillary or Obama takes over next year, I think it's fair to say that they will look at the Red Cross as an organization being run not just by Republicans, but by Bush administration Republicans. This cannot possibly help the Red Cross when it comes to appropriations, cooperation, funding, etc. The Red Cross is supposed to be non-partisan, but I don't think it will be perceived that way with a bunch of Bush's guys running the show.

8:22 AM  
Blogger GREG FISHER said...

Right.

And all of us will remember clearly how the Bill Clinton Administration viewed the Red Cross as an organization run by Republicans when Elizabeth Dole was at the helm...and, what confusion and lack of cooperation THAT caused.

It DID happen, didn't it?

9:18 PM  
Blogger Charley said...

As one of those Red Cross chapter executive directors at the local level, I'm looking forward to leadership from the new national CEO, who is by all accounts highly respected on BOTH sides of the political isle. The provocative, but untrue headline asserting an IRS “takeover” of the Red Cross does not serve the discussion of the topic well, nor the reputation of the writer for considered opinion. Whether those under Mark Everson's level were Bush political appointees or not has not been established, to my knowledge. I can understand skepticism on this matter, however criticism seems highly premature. There is concern on the chapter level about the nationwide changes that are occurring in our operating methods. I share some of that concern. But, having served as the statewide CEO of three national health agencies, and a university development officer, I know that there is always tension between the national and local organizations. Let’s give the guy (and his three- person “take-over” army) a chance.

In response to one of the blog responses, apparently Hill Watcher is not as informed as he/she would like to think. Otherwise he/she would know that the Red Cross is funded by public donations and does not receive federal appropriations or funding, except in extremely rare circumstances. Yet, due to our congressional charter we are one of the very few nonprofits, which essentially have monitoring and regulation as called for by Charity Navigator. The Red Cross is a big target and an easy hit for critics, but on balance, I believe it is an excellent organization --worthy of at least occassional acknowledgement of all the huge positive impact it produces, as well as criticism.

12:14 PM  
Anonymous Laura said...

Charley has some very good points. May I add an historical perspective?

Clara Barton had similar criticisms when she led the formation of the American Red Cross. She faced not only political criticisms but personal criticisms as well; and that lasted her entire career up until the time of her death. She spent a lifetime in fighting for a compassionate impact on the world. I am sure that those in the organization today can stay focused on that mission.

Being an outsider, I do not know the specifics of the internal triumphs and frustrations of the organization on the national level or at the local chapters. But, being an executive NFP coach and having worked in the for-profit sector at large corporations, I know the types of enormous issues they face. Thanks to all who work for the greater good and to Charity Navigator for helping to bring transparency to the philanthropic world. It can only help us all in the long run.

7:39 AM  
Anonymous Anonymous said...

Hill watcher is right. Who is the fourth IRS person. Everson (gone), Brown, Babers, and....

8:27 PM  
Blogger Kirby Sommers said...

Sean McLaughlin completes the group.

11:26 PM  

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