Red Cross runs short of money

NEW YORK — The wave of storms battering the U.S. has plunged the American Red Cross deep into debt as it rushes to prepare for Hurricane Ike.

Red Cross President Gail McGovern said even a request for federal funding is under consideration as the Red Cross seeks to become less dependent on donations that arrive after huge disasters.

Last week, when Ike was still a distant threat, the Red Cross, www.redcross.org, said it has raised only $5 million to cover costs from Hurricane Gustav that will total at least $40 million, possibly more than $70 million. It has borrowed money to meet those bills, and now has more expenses as it shifts teams to Texas and readies its shelters.

McGovern said officials call Gustav a “silent disaster” because it entailed sizable costs, yet did not trigger the flood of donations that often follows more destructive storms.

Despite the depleted funds, and Ike’s approach, McGovern said she was not anxious.

“The reason I’m calm and cool and collected is because the American public always comes through for us — always,” she said. “I just believe that this country will not let harm come to the American Red Cross.”