The Australian Red Cross has faced criticism after revealing that nearly A$10 million ($6.87 million) of the A$115 million in funds donated to support bushfire relief will go towards administration costs.
It also said that up to 10 per cent of every dollar raised will go towards “administration support costs,” to cover tasks such as managing grants and notifying donors how their money would be spent.
“Up to 10 cents in each dollar will be spent on administration support costs, including tracking donations, managing grants, collecting and analysing information, reporting to donors and meeting legal, privacy and protection obligations. Interest earned will stay in the fund,” it said.
“This ensures we can pay grants promptly, collect and analyse information from communities, meet legal, privacy and protection obligations to meet immediate needs as well as scaling up to support our recovery work.
"We’re doing everything we can to keep these costs to an absolute minimum, including seeking pro bono support,” the organization added.
Elsewhere in its news release, the organisation said it had already paid out 690 emergeny grants worth A$6.9 million of the A$30 million allocated. Another A$1 million is available to families who had lost a relative and A$5 million has been allocated to providing disaster services.
The statement indicated that another A$18 million has been allocated to be used over three years to support community recovery, and A$61 million allocated to "further immediate and long term support" with no deadline, as well as the formation of an “expert advisory panel” that has been appointed to help the charity allocate the remaining money.
The decision not to release all the funds right away to those who need it has sparked anger across the country by those who accuse the charity of stockpiling donations for future emergencies.
He said that the volunteers on the ground have been "exceptional," but that "people are on their knees and we can't have a drip feed" as he urged charity managers to make the right decision.
“Meet me in Batemans Bay at 8:00 a.m. on Saturday and I'll drive you the 300 kilometres of devastation on the far south coast,” he said in an emotional plea.
“The money is needed now, not sitting in a Red Cross bank account earning interest so they can map out their next three years and do their marketing.
"How dare they say publicly they’re only going to spend a third of the donations on people when people are traumatised and in crisis,” he remarked.
“I can assure you we're not withholding money for future disasters,” Clement said.
“We know that there is immediate support needed and we're doing all we can to get money out there now … But we also know there are phases to this recovery and communities will need money as they're ready to rebuild, they'll need money at various points.”