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I think the Red Cross has been doing this kind of stuff for a while. My understanding is that most of what they raise actually eventually gets spent on helping people, but in the fine print it says that when they raise money it is for their general fund and they will spend it as they see fit.
In this particular case the Red Cross came out today and said that they never promised to build houses for people, but they promised to provide housing. They claimed that because of corruption they were not able to buy land to build houses so they put people in temporary housing and helped build shelters etc while they look for a long term solution.
I personally think the Red Cross does a lot of good, but to me this one looks like a situation where people thought they were getting one thing when they gave money only find out later they were getting something else.
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