Friends will tell you all kinds of stuff. I'm not sure that I believe this one.
Believe it. My own personal experience (not Katrina) plus reports from those I know & trust who were on the ground post-Katrina as emergency relief workers - including two who packed up and left the ARC when instructed to collect money for blankets and comfort packs. They walked over to the Sally Army and were welcomed as grunt labor hauling cots and blankets.
To be as fair as possible, I understood that the ARC was "asking for donations" rather than outright selling relief supplies. My point of reference is that disaster "survivors" arw going to need all the cash they can muster for stuff that did not start down the pipeline as donated/donatable supplies. No matter how you phrase it, asking for money for basics is just wrong.
stay safe.