American Red Cross
Mission
“The American Red Cross, a humanitarian organization led
by volunteers, guided by its Congressional Charter and the
Fundamental Principles of the International Red Cross
Movement, will provide relief to victims of disasters and help
people prevent, prepare for, and respond to emergencies.”
Beginnings of the Red Cross

Henry Dunant, a Swiss man, developed the idea of the Red Cross in
1859 after coming across a bloody battle site in Europe.

October 1863, The International Red Cross and Red Crescent
Movement was created in Geneva, Switzerland, to provide
nonpartisan care to the wounded and sick in times of war.

August 1864, the representatives of 12 governments signed the
Geneva Convention Treaty. Which is incorporated into today’s
Red Cross movement and the societies of 175 countries
The Beginning of the American Red
Cross

Clara Barton was the first person to establish a Red Cross Society in
America. She organized the American Association of the Red Cross
in Washington, D.C., on May 21, 1881. Its purpose was to serve
America in peace and in war and during times of disaster.

1905 saw congress give the American Red Cross an official charter.
American Red Cross Organization

Three primary divisions

National Headquarters
• Coordinates with local chapters to provide centralized planning and
policy
• Offers corporate support such as insurance, marketing, legal
assistance, etc.
• Coordinates with international counterparts

Local chapters (approximately 1000 nation wide)
• Provide the disaster response capability to floods, earthquakes, etc.
• Offer community education and other services
• Responsible for funding and responding to local disasters

Biomedical Services
• Independent of the local chapters
• Consist of 36 regions covering the United States
• Primary purpose is to collect, process and distribute blood and
blood products
Legal Description of the American
Red Cross

The American Red Cross exists by Congressional Charter. The American
Red Cross received its Congressional Charter in 1905.

The charter has been amended 10 times.

The American Red Cross is independent of the government but does work
with government agencies when the need arises

Per the Department of Treasury IRS publication 557 Section 503(c)(3) page
16 the American Red Cross is exempt from federal income tax.

Additionally all states pass individual laws exempting the Red Cross from
state tax. Exceptions to this are New Mexico and Arizona (only partial
exemptions exist). Some states have no specific laws because no local or
sales tax exist.

International Red Cross gains it legal status under the Geneva Conventions.
The American Red Cross is a member of the International Red Cross
American Red Cross Membership




A Red Cross volunteer is an individual who, beyond the
responsibilities of paid employment, freely assists the American
Red Cross in the accomplishment of its mission without
expectation or receipt of compensation.
Over 1.2 million people volunteered for the American Red Cross
in FY2002.
Ninety-seven percent of American Red Cross staff are
volunteers.
• Adults over 25 comprise about 66% of Red Cross volunteers
• Youth and young adults make up about 34%.
2004 saw a 6 percent increase in volunteer training given from
2003
Funding for 2002 ($4.117 billion)


Three primary sources

Contributions 45%
• Includes monetary and in-kind donations

Investment Income and Other 5%

Products and Services 50%
• Course fees and whole blood and tissue services
Funding can fluctuate depending on the year, percentages represent
FY 2002
Expenditures for FY 2002 ($3.571 billion)








Biomedical 52%
International 1%
Disaster Services and Relief 9%
Health, Safety and Community Services 10%
Fund Raising 4%
Management and General 5%
Armed Forces Emergency Services 2%
Liberty Disaster Relief September 11 Response 17%
Disaster Expenditures Over Last 10 Years
(millions of dollars)










FY 93 – 248.2
FY 94 – 220.9
FY 95 – 233.3
FY 96 – 216.5
FY 97 – 214.5
FY 98 – 192.6
FY 99 – 321.5
FY 01 – 286.1
FY 02 – 308.2

w/o liberty funds (disasters not associated with 9/11)
FY 02 – 618.0

Liberty funds (spent only of 9/11 disaster relief)
Those served by the Red Cross
(almost too numerous to list)
-
-
Supported victims of 9/11 during the time of the crisis and with mental
health services for years to come
More recently victims of the deadly hurricanes and internationally victims of
the tsunami
Clients don’t always make the news 92% of all disaster responses by the
Red Cross are supporting families involved house/apartment home fires.
Carolina Lowcountry Chapter, a three county area, responded to 282 single
family house fires in 2004
More than 400 specially trained volunteers are on the critical incident
response team to assist with victims of aircraft incidents
Provide preparedness classes like CPR, water safety and how to prepare
for natural or manmade disasters
Provides assistance to military families world wide
Retired and senior volunteer programs and senior advocacy programs
Provide half the nations blood supply to hospitals each year
Additionally local chapters may choose to provide service not found
nationwide
Challenges Ahead
-
Blood Donations 0.6% increase in donations over past five years compared to a 4%
increase in need
Only 5% of those eligible donate
Greatest contributions come right after a disaster however blood has a shelf
life, red cross needs constant donations
-
Financial donations are needed before or at the onset of a disaster but people are
prone to give immediately after a disaster. Like blood a constant flow of funds are
required
-
Public perception of funds use
This first came to light during 9/11 donations were going to the disaster relief
fund which is a general relief fund. Some donors wanted their funds to go only
towards the 9/11 disaster. This sparked the liberty fund that took donations
specifically for the 9/11 disaster.
This also took place during the tsunami disaster. The Red Cross set a goal of
$400,000,000 when this goal was met they stopped soliciting tsunami
donations. People can still donate to that disaster but are encouraged to give
to the general fund.
How can you help?
Start by going to www.redcross.org this
site alone has useful information and can
put you in touch with your local Red Cross
chapter. Local chapters can help you
donate money, blood or time through a
one time donation or through constant
giving.
References
Duncan, Chris. Communications Associate Carolina Lowcountry Chapter,
American Red Cross. 2005.
State Sales and Use Tax. http://www.redcross.org/pubs/taxexempt/
Our 2003 Report to the American People.
http://www.redcross.org/pubs/car03/annual_rept_insert.pdf
2002 Corporate Annual Report. 2002. http://www.redcross.org/pubs/#report
Carolina Lowcountry Chapter fact sheet
United States Congress. 1999. Congressional Charter of the American
National Red Cross.