Just how badly does the American Red Cross want to keep secret how it raised and spent over $300 million after Hurricane Sandy?(emphasis mine)
The charity has hired a fancy law firm to fight a public request we filed with New York state, arguing that information about its Sandy activities is a "trade secret."
The Red Cross' "trade secret" argument has persuaded the state to redact some material, though it's not clear yet how much since the documents haven't yet been released.
As we've reported, the Red Cross releases few details about how it spends money after big disasters. That makes it difficult to figure out whether donor dollars are well spent.
The Red Cross did give some information about Sandy spending to New York Attorney General Eric Schneiderman, who had been investigating the charity. But the Red Cross declined our request to disclose the details.
So we filed a public records request for the information the Red Cross provided to the attorney general's office.
That's where the law firm Gibson Dunn comes in.
An attorney from the firm's New York office appealed to the attorney general to block disclosure of some of the Sandy information, citing the state Freedom of Information Law's Trade Secret Exemption.
The documents include "internal and proprietary methodology and procedures for fundraising, confidential information about its internal operations, and confidential financial information," wrote Gabrielle Levin of Gibson Dunn in a letter to the attorney general's office.
If those details were disclosed, "the American Red Cross would suffer competitive harm because its competitors would be able to mimic the American Red Cross's business model for an increased competitive advantage," Levin wrote.
Trade Secret Exemption? Proprietary Methodology? Competitive Harm? Business model? Competitive Advantage?
Seriously?
You are asking us to give you money on the vague promise that you won't blow it all on salaries and severance packages for senior executives (and, you know, give thousands of Hemophiliacs AIDS ……… Oops, too late on that one).
The American Red Cross, and the Susan G. Komen foundations are not charities should be our first choices for donations.
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