Red Cross Disaster Fund Is Broke

The American Red Cross, reeling from dealing with catastrophic floods in the Midwest, is facing its own disaster as it runs out of money to pay for relief aid. The charity has raised just $3.2 million to pay for shelters, food, and other costs—a fraction of the $40 million that may be needed in seven states hit by floods, reports the Washington Post.

Donors are giving less because of rising gas and food prices and the collapse of the housing market. The funding crisis is especially acute as hurricane season looms. "The disaster relief fund is completely depleted. The balance is zero," said an organization official. (More American Red Cross stories.)