NONPROFIT NEWS

All Red Cross volunteers and board
members undergo background checks

BEGINNING in late 2006, the American National Red Cross has mandated that all Red Cross volunteers, including directors on local Red Cross boards, undergo background checks.

According to a story in the Wednesday, Feb. 7, Honolulu Star-Bulletin the new requirement follows allegations of impropriety following the hurrican Katrina relief effort in 2005. The newspaper quoted Red Cross Hawaii board member Don Carroll: "Some people really struggled with it. Given that we've had certain problems, at least on a national scale, it's probably just one of those governance issues you've got to deal with – it's happening in the corporate world and nonprofit world. Life is changing."

John Flanagan, president and CEO of the Hawaii Alliance of Nonprofit Organizations, told the newspaper there is a heightened interest in nonprofit accountability and transparency. "The trend is that board members are having an increasing level of responsibility, and they're being held responsible more and more for financial reports and statements," he said.

The Red Cross initiative represents a considrable investment. Nationally, the organization's 775 chapters have a total of 1.12 million volunteers, including some 2,000 in Hawaii. The background checks are done online and cost about $3.50 apiece.

The background check web site describes the process in these terms: "The nature and scope of this disclosure and authorization is all-encompassing, however, allowing RED CROSS to obtain from any outside organization all manner of consumer reports and/or investigative consumer reports now and, if you are hired, throughout the course of your employment or volunteer service to the extent permitted by law. As a result, you should carefully consider whether to exercise your right to request disclosure of the nature and scope of any investigative consumer report."