BBB Wise Giving Report for
American Red Cross

BBB Wise Giving Report issued March 2012
BBB Wise Giving Report expires March 2014


This BBB Accredited charity meets all 20 Standards for Charity Accountability and is a Seal Holder. Find out more...


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Charity Contact Information

Name: American Red Cross
Address: 2025 E Street, NW
  Washington, DC 20006
Phone: 202-303-5000
Web Address: www.redcross.org
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1905, District of Columbia
Affiliates: Boardman Indemnity, Ltd., and 581 chapters

Stated Purpose: "to prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors."

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Evaluation Conclusions

              

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Programs

              

In order to help individuals and families prevent, prepare for and respond to emergencies, ARC provides disaster preparedness information and health and safety instruction, including first aid/CPR/AED; aquatics (lifeguarding, water safety); caregiving (babysitter’s training and nurse assistant training); and HIV/AIDS prevention education. During disasters, the organization provides food, shelter, bulk distribution items, emergency assistance, health services, crisis intervention and community mental health debriefings, as well as other related emergency care to persons in need, and supports people recovering from disasters. Internationally, ARC provides humanitarian assistance to those in need. The organization’s international work includes disease prevention, disaster preparedness and response, restoring family links, and dissemination of international humanitarian law. Furthermore, ARC reports providing safe blood products to hospitals and other facilities across the country. According to ARC, it also collects, tests, and distributes nearly half of the nation’s blood and blood components and operates 36 regional blood service centers throughout the country. The organization also provides emergency communications and other assistance to U.S. service members and their families as well as delivers emergency financial support; programs and services for the sick, wounded and recovering at veterans and military medical facilities; education; and other services for U.S. military families around the world.

For the fiscal year ended June 30, 2011, the ARC's program expenses were:

  
Biomedical services 2,195,108,000
International relief and development services 340,106,000
Domestic disaster services 282,974,000
Health and safety services 203,735,000
Community services 90,558,000
Services to armed forces 57,403,000
Total Program Expenses: $3,169,884,000
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Governance

              

Chief Executive : Gail J. McGovern, President and CEO
Compensation*:
$561,210

Highest Paid Executive: James Hrouda, Executive Vice President, Biomedical Services
Compensation*: $621,779

Chair of the Board: Bonnie McElveen-Hunter
Chair's Profession / Business Affiliation: Founder and CEO, Pace Communications

Board Size: 20

Paid Staff Size: 32000

*2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

Direct mail, telemarketing, special events, print advertisements, television, radio, grant proposals, Internet appeals, door to door, planned giving, cause-related marketing, and membership appeals.
Fund raising costs were 14% of related contributions. (Related contributions, which totaled $914,040,000, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on the ARC's audited financial statements (consolidated with affiliates) for the fiscal year ended June 30, 2011.

Source of Funds  
BioMedical products and services 2,189,663,000
Corporate, foundation, and individual giving 685,947,000
Program materials 139,222,000
Contracts, including federal government 112,804,000
United Way and other federated 111,273,000
Legacies and bequests 81,548,000
Other revenues 65,222,000
Investment income 49,584,000
Services and materials 35,272,000
Total Income $3,470,535,000


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Uses of Funds as a % of Total Expenses

Programs: 92%  Fund Raising: 4%  Administrative: 4% 

Total income   $3,470,535,000
  Program expenses $3,169,884,000
  Fund raising expenses 127,019,000
  Administrative expenses 142,682,000
 
Total expenses   $3,439,585,000
Income in Excess of Expenses   30,950,000
Beginning net assets   1,958,887,000
Other Changes in Net Assets 202,086,000
Ending net assets   2,191,923,000
Total liabilities   2,061,658,000
Total assets   $4,253,581,000

Note 1: According to the ARC, the organization received in-kind contributions in the amount of $35,272,000 which includes services ($14,857,000), materials($13,273,000), miscellaneous ($4,759,000), space and utilities ($1,594,000), and property and equipment ($789,000).

Note 2: In the above financial summary, "other changes in net assets" represents net nonoperating gains ($193,157,000) and pension-related changes other than net periodic benefit cost ($8,929,000).

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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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