Yep, good point. The Attorney General stated today in the new conference that we must go through reputable organizations and the Red Cross is definitely the way to go. What a shame there are people out there taking advantage of other's suffering.
Also, just a FYI to those who are Catholic. The American Conference of Catholic Bishops has designated a second collection at all Masses this week and local Bishops have issued statements confirming this effort. So if you are Catholic, you will have an opportunity to make a difference at Mass. All money will be sent directly to Catholic Charities USA. Their offices in areas effected by Katrina have obviously been effected. Catholic Charities has always been a key player in disaster relief around the globe. Most recently the Sunomi effort.
If you would rather donate directly, they have a website here with the Federal ID in which you can send your cash donation.
http://www.catholiccharitiesusa.org/news/katrina.cfm