The NonProfit Times - January 1, 2008 - (Page 9)

prevent this kind of thing from happening,” she said. “What the board should be commended on is that they’ve taken swift action. Especially when you’re in the kind of situation that the Red Cross is in, the worst thing to do is to prevaricate and to delay taking any action. Because you know it’s going to be kind of devastating to you,” said Crompton. The 53-year-old Everson,who is married with two children, took the top post at the Red Cross in May, 2007 after several years as IRS commissioner. His selection by the board culminated a 15-month search to replace Marsha Evans, who resigned in December 2005 amid friction with ARC’s 50-member board. Evans’ three-year tenure was marked by criticism of the agency’s response to Hurricane Katrina. Jack McGuire, former executive vice president of biomedical services, served as an interim CEO between Evans and Everson and was among those considered for the permanent post. Two weeks before Everson took the helm of the Red Cross last spring, President George W. Bush signed into law major governance reforms for the disaster relief agency. An October 2006 report of the ARC’s Board of Governors set forth recommendations for sweeping changes in governance that Congress approved in May. The most significant reforms included reducing the board from 50 members to between 12 and 25 members by 2009 and 12 to 20 members by 2012, while also creating a Red Cross Cabinet Advisory Council. The board called for the establishment of an Office of the Ombudsman to provide annual reports to Congress. Everson appointed his former chief of staff at the IRS, Beverly Ortega Babers, to serve as ombudsman. The report’s recommendations also sought to clarify the role of the board “to focus solely on governance and strategic oversight,” as well as clarify the three categories of board members into a single category of membership, to be elected by the full board. In years past, the Red Cross has received its share of criticism following a disaster:After the Sept. 11, 2001 terrorist attacks for the way it handled disbursements of the Liberty Fund and donations for victims, and the bureaucratic and slow response to Hurricane Katrina in August 2005. But Everson generally received praise in recent months for the agency’s efforts to aid victims of the Southern California wildfires in October. NPT NPT staff writer Marla E. Nobles contributed to this report. BUSINESS BRIEF Logo Fight Goes To Trial This Month T he battle between pharmaceutical giant Johnson & Johnson (J&J) and the American Red Cross (ARC) over trademark and licensing issues is scheduled to go to trial Jan. 4 to decide the remaining claims in the lawsuit. A federal judge in November dismissed part of the lawsuit brought by J&J against the disaster relief agency seeking to restrict the Red Cross’s use of its emblem on first aid, health, safety and emergency preparedness products. The judge’s ruling dismissed entirely the J&J claim that the Red Cross promised not to engage in the sale of first aid, health, safety and emergency preparedness products. Following an Oct. 29 hearing at the United States District Court for the Southern District of New York, Judge Jed S. Rakoff ruled that the “promissory estoppel” claim, a very significant portion of the pharmaceutical company’s lawsuit against the Red Cross, was “dismissed with prejudice.”The judge’s ruling also means that J&J cannot refile arguments on this claim. A spokesman for J&J,which filed an amended complaint in September,said the New Brunswick, N.J.-based pharmaceutical company was pleased with the court’s decision,“which denies in large part”ARC’s motion to dismiss. “The decision clears the way for Johnson & Johnson to proceed with seven of the eight claims that were originally alleged, allowing the case to move forward as planned,”said Marc Monseau,declining further comment on the case since it’s still in the midst of litigation. The judge’s order came nearly three months after J&J filed suit against the Red Cross for the Red Cross’s use of its emblem on products it sells to the public.The Red Cross helps Americans prevent, prepare for and respond to disasters and emergencies. One way the Red Cross does this is by providing first aid, health, safety and emergency preparedness products at places where people regularly shop.The Red Cross invests the proceeds from the sale of these products into fulfilling its humanitarian mission. NPT www.nptimes.com 9 JANUARY 1, 2008 THE NONPROFIT TIMES http://www.sage360.com/nonprofit http://www.sage360.com/nonprofit http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - January 1, 2008

The NonProfit Times - January 1, 2008 Expenses Continue To Put Stress On Nonprofit Budgets Insuring Donors’ Goodwill Volunteers On Firing Line Contents Who...When...Where...How...What? Red Cross Audit Comes Up Clean Exit Doors Rear And Aft Calendar A Fresh Look Special Report: Accounting APIs Opportunity Is Knocking Middle Management Barrier Memorial NPT Jobs Resource Directory

The NonProfit Times - January 1, 2008

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