Dear Colleagues:

 At an 11:30 a.m. EST press conference today in Washington, D.C., David
 McLaughlin and I will announce sweeping changes aimed at increasing our
 level of support-and the speed with which it is provided-to the people
 affected by the September 11 terrorist attacks. Since becoming the CEO, I
 have worked closely with David McLaughlin, our chairman, and key
 volunteers and staff to refocus the Liberty Fund. We believe that these
 changes, which have been adopted by the American Red Cross Board of
 Governors, will preserve the confidence of the American public and our
 donors in the American Red Cross and its life-saving role in times of
 need:

 *     The Liberty Fund, which has received $543 million, will be used
 solely to meet the immediate and long-term needs of the people affected by
 the September 11 terrorist attacks. The other essential services that were
 originally supported by the Liberty Fund-such as the Strategic Blood
 Reserve, community outreach and armed forces services-will continue, but
 will be funded from other Red Cross sources.
 *     The Family Gift Program-which covers basic living expenses such as
 housing, food, utilities and healthcare for families that lost loved ones
 on September 11-has been extended from three months to a full year. By
 year's end, we expect to spend an additional $111 million in these family
 gifts and will present a plan at the beginning of the new year detailing
 how the remaining funds will be spent.
 *     We will provide the names of the 25,000 families the American Red
 Cross has already helped in response to the September 11 terrorist attacks
 to a database that will be shared by other relief agencies. This step will
 make it easier and quicker for families of those directly affected by
 these tragedies to get the help they deserve. In order to protect the
 confidentiality of these families, access to the database will be
 restricted to participating relief agencies; additionally, individuals
 whose personal information may be subject to disclosure, will be given an
 opportunity to opt out of the program without jeopardizing any help from
 the Red Cross.
 *     We will work even more closely with the American Red Cross in
 Greater New York to further improve the delivery of short- and long-term
 services to victims. Also, the modest operating costs, which include
 toll-free lines that have been used to locate victims, will be funded to
 the extent possible by the interest earned on the Liberty Fund balance. 
 Detailed information regarding today's announcement-including talking
 points and a press release-will be available early this afternoon on
 CrossNet. In addition, I invite you and your volunteers to view today's
 press conference, which will be broadcast live on ARC-TV. Details on
 watching this program can be found on CrossNet
 

 Every effort is being made to communicate proactively with the national
 media. With the assistance of the local chapters-and the communications
 tools we have created-we are also working to communicate effectively with
 local media, donors and citizens throughout the country. As we express our
 regret to the American people today, with these changes, please know that
 we are most regretful that you, our volunteers and staff on the frontline,
 were put in this difficult situation. 

 The Board of Governors joins me in expressing our profound appreciation
 for your tireless dedication and support during this unprecedented
 national crisis. By year's end, we expect to spend $275 million on relief
 efforts. Yet again, Red Cross employees and volunteers have made heroic
 personal efforts to save lives, ease suffering and restore hope. Having
 returned just yesterday from the site of the American Airlines Flight 587
 crash, I have seen firsthand Red Crossers provide aid and comfort in that
 disaster. Not only do you make our great organization proud, you make it
 better.

 Sincerely,
 Harold Decker
 CEO