Former IRS chief appointed to lead the American Red Cross

The American Red Cross, troubled by criticism following its response to Hurricane Katrina that led to the resignation of CEO Marsha J. Evans on Dec. 13, has responded by hiring Mark Everson, the commissioner of the Internal Revenue Service, to become its chief executive effective May 29.

Everson has been praised for modernizing the IRS. His appointment is timely, as legislation to revamp the charity's 60-year-old governance structure now awaits Congressional decision.

"With the arrival of Mr. Everson, the Red Cross will build upon enhancements to all Red Cross operations, particularly continuing to be vigilant custodians of the nation's blood supply, supporting the U.S. armed forces and working to prepare all Americans to respond to future catastrophic events," said Bonnie McElveen-Hunter, red Cross board chair.

One of the organization’s harshest critics, Senator Chuck Grassley (R-Iowa), praised the appointment, saying Everson "gets good marks for his leadership in reforming the tax-exempt community. ... His sense of accountability, his energy, and his respect for institutions while being reform-minded are all attributes the Red Cross needs."

Following an internal effort by the Red Cross to establish governance best practices, the U.S. House of Representatives has passed legislation to modernize Red Cross governance. The bill, which now goes to the Senate, seeks these changes:

• Downsize the 50-member board to 12-25 members by 2009 and to 12-20 members by 2012.
• Clarify the role of the board to focus solely on governance and strategic oversight.
• Reduce three categories of board members to a single category; these individuals will be elected by the full board.
• Establish a new Office of the Ombudsman to address whistle-blower complaints and make annual reports to Congress.
• Redefine and better delineate the roles of the chairman and the president and CEO.
• Transform seven governors appointed by the president into a new advisory Cabinet Council.

As IRS commissioner, Everson modernized the agency's antiquated computer systems, increased enforcement and oversight of nonprofits and improved taxpayer service. Jack McGuire, interim president and CEO, will return to the post of executive vice president for biomedical services.