Grassley, chairman of the Senate Finance Committee, sent a letter Thursday to American Red Cross Chairwoman Bonnie McElveen-Hunter questioning the way the organization is run and how it handles money given for disaster relief, The New York Times (NYSE:NYT) reported Friday. The Red Cross issued a release saying it would have an answer to the senator's letter within a week.

The Red Cross has come under scrutiny by Congress after the charity's efforts to help those affected by Hurricane Katrina. Further question arose after Red Cross President Marsha Evans on Dec. 13 announced her resignation effective at the end of the year. The Times said these are among events that have led Congress to consider changing the Red Cross charter.

Rep. Bennie Thompson, D-Miss., told the Times: "As the case continues to be made that this congressionally chartered organization is dysfunctional, it would be foolhardy of Congress not to consider everything it can do to fix the problems that have been identified, including revising that charter."