In the uncertainty that followed September 11, the American Red Cross created the Liberty Fund as a separate and distinct fund from the domestic Disaster Relief Fund and the International Relief Fund to respond to the immediate and emerging needs of victims of the terrorist attacks as well as preparing for future attacks.

Why a separate fund? For many reasons. This was a disaster unlike any other in United States' history. This was not a regional disaster; it was not only about the hideous events that occurred in New York City, Pennsylvania, and at the Pentagon. Rather this was a disaster that affected the entire nation, now and well into the future.

The Liberty Fund was intended to support an integrated response that involved virtually all of the Red Cross lines of service and all of our responsibilities under our Congressional Charter and the Federal Emergency Response Act. The response would include our traditional disaster relief efforts expanded into new programs of aid never before required. It would be about preparing for appropriate response to weapons of mass destruction. It would be about managing America's blood supply and creating a strategic reserve for future attacks or military action.

It would mobilize our services to support the armed forces and their families for possible military action. It was about practicing stringent accounting measures, doing audit testing, and being totally transparent on the amount of money raised and what it would be used for.

Somehow in the course of all of the unprecedented events following September 11, confusion on the use of the Liberty Fund caused heavy national media and policy makers scrutiny, as well as some donor concerns.

What caused this confusion over use of funds? It seems there were several dynamics at work: possible confusion over other relief organization messages suggesting 100% of all funds they raised would go directly to families; the inability of the American Red Cross to get the original messages about the proposed use of the Liberty Fund to the public; the resignation of the National President, Dr. Bernadine Healy; and finally, misleading reports that became "facts" in the eyes of the public.

It became clear that the media, policy makers, and some donors did not feel that Red Cross efforts were in line with the public expectations and desires for the Liberty Fund. America spoke loudly and clearly. The National Red Cross Board of Governors, a group of 50 volunteers from around America, made an assessment of the proposed use of Liberty Funds and determined that a course correction was necessary. Therefore, the Red Cross recently announced that it was changing the direction of the Liberty Fund and is honoring the national call for relief efforts to be directed solely toward the people affected by the September 11 tragedies. Programs that had been part of the Liberty Fund such as the strategic blood reserve, community outreach and preparedness, and our services to the Armed Forces will continue but must be funded from other sources.

Whatever the reasons for the confusion, the issue is a case of well-meaning people trying to do the right thing for America, rather than misappropriations of funds and scandal. The decisions made in those terrible hours and days immediately following September 11 were based on uncertainty, fear, and the need to do as much as possible. The initial decision by the American Red Cross Board of Governors for the use of the Liberty Fund had the best interests of America in mind. Time will tell whether these decisions were appropriate, but for now the overwhelming need to help the victims of this tragedy will be the number one priority of the Liberty Fund.

The Red Cross is continuing to provide massive support and relief including the following:

• Expanding the Family Grant Program which helps families with mortgage or rent payments, utility bills, transportation, food, clothing, funeral and other expenses for a full year while we work to address their even longer term recovery needs.
• Creating a common database of victims in conjunction with other relief agencies to enhance coordination of relief efforts.
• Expanding our on-going outreach efforts to contact anyone who has been affected by the tragedy.