I sat on the Board of two non-profit organizations and worked for a college that was also non-profit. In all 3 cases if a donation specified on the check it was to go to a certain area then it did. Now I don't know how it worked and maybe these organizations did it so they could continue to raise funds but I also would think they would have to have some accountability of funds coming in. I am not familiar with Red Cross and what you are referring to.
I will look at guidestar to see if they can explain this legally.
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