Arlington, VA, August 15, 2002 -- The BBB Wise Giving Alliance (the Alliance), the national charity monitoring organization affiliated with the Better Business Bureau system, released a report on the American Red Cross today that shows the organization does not meet two of the charity watchdog's 23 accountability standards.

The report, which focuses on Red Cross 9/11 activities, is the result of an analysis of more than 1,000 pages of materials that were provided by the Red Cross in response to a request by the Alliance to complete its standards evaluation. The BBB Wise Giving Alliance concluded that based on a review of 9/11 related Red Cross appeals, the Red Cross did not meet the BBB standards* addressing (1) misleading solicitations and (2) disclosures in cause-related marketing promotions. (See the full text of the report at www.give.org for the complete explanation of these findings.)

"Both of our findings refer to incomplete information being provided to donors at the point of appeal, that could have led to public confusion over how Red Cross 9/11 donations were used," notes H. Art Taylor, BBB Wise Giving Alliance president and CEO. "The Alliance appreciates the fact that the Red Cross has already begun to take proactive measures to address these concerns. We will revisit these issues at the beginning of next year to determine if these findings can be amended based on these actions."

Taylor emphasized that the Alliance evaluates a charity against various financial, governance, fund raising and other accountability standards. Its reports do not render judgments about the importance of an organization's mission or the quality of its programs. "We recognize the valuable service that the American Red Cross provides. Our concerns here are focused solely on full disclosure to potential donors."

In response, the Red Cross has provided the following comment. "We appreciate the need for accountability and the important role played by the BBB Wise Giving Alliance in ensuring that charities are held to the highest possible standards," said Marty Evans, American Red Cross president and CEO, "The events and aftermath of September 11 were an unprecedented challenge to our organization and all other charities that responded to these attacks. They pointed the way to new and improved practices we adopted on June 5, 2002, that better inform donors while honoring their wishes. We are confident that these new practices comply fully with the BBB standards, and we look forward to future BBB evaluations."

Note to Editors:
The full text of the BBB Wise Giving Alliance Report on the American Red Cross is posted on the Alliance website: http://www.give.org/reports/arc.asp. Individual copies are also available on request by writing to the BBB Wise Giving Alliance, 4200 Wilson Blvd., Suite 800, Arlington, VA. 22203.

* The Red Cross does not meet the following two BBB charity standards:
(1) Solicitations and informational materials, distributed by any means, shall be accurate, truthful and not misleading, both in whole and in part.
(2) Solicitations in conjunction with the sale of goods, services, or admissions shall identify at the point of solicitation the actual or anticipated portion of the sales or admission price to benefit the charitable organization or cause.