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President Bush Signs Legislation To Modernize American Red Cross Governance
Legislation Enhances Governance Oversight and Transparency
WASHINGTON, May 11, 2007 - Today, the President signed legislation that will modernize the governance structure of the American Red Cross and enhance the Red Cross Board of Governors' ability to support the critical mission of the Red Cross in the 21st century.
"The American Red Cross is very grateful to President Bush, Members of Congress, our Governance Advisory Panel, other non-profit and for-profit governance experts and the entire Red Cross family for their outstanding support throughout this transformational process," said Bonnie McElveen-Hunter, Chairman, American Red Cross. "This day and this legislation are truly historic for the Red Cross as we better prepare ourselves to meet the challenges facing us not only today but most importantly, for tomorrow."
Last year, the Red Cross initiated a comprehensive assessment of its governance structure that culminated in the publication of a 156-page report entitled, "American Red Cross Governance for the 21st Century." Throughout the review process, a group of independent governance experts, led by Karen Hastie Williams, generously donated their time and expertise to the Red Cross Board.
"This is an historic day for the American Red Cross and for all people who rely on this vital organization," said Patricia McGuire, President of Trinity (Washington) University and member of the Red Cross's Governance Panel. "President Bush's signature on this legislation opens a new era for more effective Red Cross governance, which will surely result in even better delivery of Red Cross services and support to the public in times of crisis. I salute Bonnie McElveen-Hunter and the Red Cross board for their courage to undertake difficult change as part of their tireless commitment to excellence in Red Cross services."
Based on this report and its unanimously approved recommendations, the Board sought urgent Congressional approval of its recommendations of which the most significant reforms included:
- To downsize the 50-member Red Cross Board to 12-25 members by 2009 and to 12-20 members by 2012, and the creation of a Red Cross Cabinet Advisory Council.
- To clarify the role of the Board to focus solely on governance and strategic oversight.
- To clarify the three categories of board members into a single category of membership; these individuals will be elected by the full Board.
- To establish a new Office of the Ombudsman that will provide annual reports to Congress.
"The American people need the Red Cross," said Senator Charles Grassley (R-Iowa). "We just saw tornadoes devastate parts of Kansas. People left homeless by natural disaster look to the Red Cross for immediate relief, and they receive it. In turn, the Red Cross needs the financial and moral support of the American people. By embracing reform, and wanting to improve its performance, the Red Cross is ensuring that its trust from the public is well-deserved."
"I applaud the President's signing into law today these much-needed reforms of the governance structure of the American Red Cross. This legislation, which I co-authored with the House Committee on Foreign Affairs ranking member, Ileana Ros-Lehtinen (R-FL), makes the Red Cross more accountable to its employees and volunteers, and to the American people," said Congressman Tom Lantos (D-California), Chairman of the House Committee on Foreign Affairs. "For over 125 years, the American Red Cross has been on the scene lending a helping hand in the immediate aftermath of any disaster, natural or otherwise. With these reforms, the organization will be in a better position to maintain the good name it has developed through its good work."
To review the Red Cross Board of Governors complete governance recommendations, "American Red Cross Governance for the 21st Century," please visit http://www.redcross.org/report/bogoct2006.
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