The local chapter of the American Red Cross has voluntarilygiven up its charter and disbanded in order to clear outstandingdebts dating back to Hurricane Katrina in 2005, current and formerofficials said.

Former chapter director Layla Edwards, who resigned from theorganization in August, said the newly dissolved chapter was facinga more than $20,000 debt to the national American Red Cross. Thelocal chapter, which covered Lincoln, Lawrence, Pike and Franklincounties, cashed and used donation checks during Hurricane Katrinathat the national organization claimed for its own during an auditthe following year.

Edwards said the donations were made by local businesses thatwished for the donations to remain local and that all nationallydesignated donations were passed up the chain.

“When national came in and did their audit, they said, ‘No, thiswas supposed to go to us,'” she said. “National charged the localchapter for the checks.”

Edwards said the hanging debt combined with decreased donationslocally and nationwide made it impossible for the chapter tocontinue operating.

Edwards said the chapter’s monthly expenses totaled more than$4,000, including a monthly $1,000 assessment to the nationalAmerican Red Cross, approximately $1,800 per month for staffpositions and $400 per month rent for the chapter’s office on CourtStreet. Also factored into the total are utilities, fuel andgeneral operation costs.

Melton McMorris, treasurer of the disbanded chapter’s board ofdirectors, said the chapter’s dissolution would allow the debt tobe passed on to the national Red Cross, clearing the slate for apossible reorganization of the chapter in the future.

“If you give up your charter, then you have a chance probably ina year to build back up and get your charter back,” he said. “Wevoted to give it up and try to operate without some of theexpenses. We just couldn’t finance it with the lack of support – wecouldn’t raise enough funds to pay our expenses.”

The former Brookhaven-headquartered Mid-South MississippiChapter will now operate entirely on a volunteer basis as theMid-South Service Delivery Area under the direction of the SouthCentral Mississippi Chapter – a regional authority – inHattiesburg.

The previous issues with the destination of local donationsapparently have been resolved under the Hattiesburg leadership.South Central Mississippi Chapter Executive Director JaniceVannatta said local donations will be earmarked for the localservice area.

Vannatta also said the chapter’s volunteers will attempt tocontinue operating small offices – in donated space – in each ofthe four former Mid-South chapter counties, with Brookhaven andMcComb offices looking to be opened first. The plan would eliminatethe overhead costs that comes with office rent and paid staff.

Vannatta said the disbanded chapter’s volunteers would stillserve the American Red Cross, and the board of directors will bekept as an advisory board for the Hattiesburg office’s decisions inLincoln and surrounding counties.

“We’re going to be working with the volunteers to set up somevital committees,” she said. “They will advise me and thevolunteers that are in place and will be sort of the eyes and earsof the community to help us guide this process.”

Vannatta said the advisory board would be open for input frommembers of the communities in each of the four counties as part ofthe Red Cross’ upcoming drive to increase membership on the locallevel and to reorganize before possibly reforming the chapter inthe future.

Even though the Mid-South Mississippi Chapter has beendissolved, its office abandoned and all paid positions eliminated,the organization will continue to provide disaster relief.

Vannatta said local Red Cross operations would continue underthe direction of Hattiesburg, and donations specified for theformer chapter’s four-county territory will still be used in thosecounties.

“All of the donations, whether they be county donations from theboard of supervisors or donations from individuals, are restricteddonations that will stay in those counties,” she said. “If it comesto us with a Brookhaven address, we’ll know those donations are forthat area. Donations for a specific area will remain in that area -we want the folks in the Mid-South chapter area to know that.”