Form
990
Return of Organization Exempt From Income Tax
OMB No 1545-0047
545-0047
200
Department of the Treasury
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung
benefit trust or private foundation)
.
~ The organization may have to use a copy of this return to satisfy state reporting requirements .
July
1
,
2pp3,
June
30
,
04
For the 2003 calendar year, or tax year beginning
and ending
20
Internal Revenue Service
A
B Check if applicable
0 Address change
Name change
[] Initial return
Final return
D Amended return
Pwase C Name of organization American National Red Cross & Its
D Employer identification number
label or
print or
type
E Telephone number
use IRS
Specific
Inst
Itons. I
Application pending
Constituent Chapters and Branches
F Accouriting method:
El
Washington, DC 20006
Gross receipts : Add lines 6b, 8b, 9b, and 10b to line 12
Revenue, Expenses and Chan ges in Net Assets or Fund Balances See a e 18 of the instructions .
1
d
d
Contributions, gifts, grants, and similar amounts received :
is
393A
,218 , 246
. . . .
. . . . . ,
a Direct public support .
ib
163 , 835 , 709
b Indirect public support
. . . . . . . . . . . ,
6
is
.
.
. . .
c Government contributions (grants)
~77,96,1 ~5
39,703,14
d Total (add lines 1a through ic) (cash $
noncash $
2
2
Program service revenue including government fees and contracts (from Part VII, line 93)
3
3
Membership dues and assessments . . . . . . . . . . . . . . . . .
4
4
Interest on savings and temporary cash investments
5
5
Dividends and interest from securities
6a Gross rents . . . .
. . . . . . . . . . . . 6a . . . . 5 915 905
6b
3 172 849
b Less : rental expenses . . . . . . .
. . , . .
6c .
. . . . . . , ,
c Net rental income or (loss) (subtract line 6b from line 6a) .
)
7
7
Other investment income (describe "
(A) Secunties
(B) Other
8a Gross amount from sales of assets other
243, 782, 757
8a
than inventory
. . . . . . . , .
235, 796,621
8b
b Less : cost or other basis and sales expenses .
7, 986, 136
8c
c Gain or (loss) (attach schedule) . . . .
d Net gain or (loss) (combine line 8c, columns (A) and (B)) . . . . . . .
9
Special events and activities (attach schedule) If any amount is from gaming, check
of
a Gross revenue (not including $
0
9a
contributions reported on line 1a) . . . . . . .
9b
b Less : direct expenses other than fundraising expenses
c Net income or (loss) from special events (subtract line 9b from line 9a) .
10a
10a Gross sales of inventory, less returns and allowances . .
11
m
16 , 432 , 640
4 , 668, 134
11 , 764, 506
.
he
.
.
.
13
14
15
Other revenue (from Part VII, line 103)
Total revenue (add lines 1d, 2, 3, 4, 5
Program services (from line 44, colu n
Management and general (from line 4,
Fundraising (from line 44, column (
.
.
.
.
.
.
.
.
8d 9c, 10c, and 11) .
cB>PECEIvED
o umn
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0
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,
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8d
45A
, 547, 942
17262700
10b
0
b Less : cost of goods sold . , . . . . . . . , , .
c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) .
12
w
RX Accrual
H(a) Is this a group return for affiliates?
D Yes ON No
H(b) If "Yes," enter number of affiliates o- -------------- H(c) Are all affiliates included?
E] Yes El No
(If "No," attach a list See instructions)
H(d) Is this a separate return tiled by an
organization covered by a group ruling? El Yes XD No
f Group Exemption Number
M Check " 0 if the organization is not required
to attach Sch . B (Form 990, 990-EZ, or 990-PF).
K Check here " El if the organization's gross receipts are normally not more than $25,000. The
organization need not file a return with the IRS, but if the organization received a Form 990 Package
m the mail, it should file a return without financial data. Some states require a complete return .
00
El Cash
Other (specify) 01,
H and 1 are not applicable to section 527 organizations.
* Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable
trusts must attach a completed Schedule A (Form 990 or 990-EZ).
Organization type (check only one) " NJ 501(c) ( 3 ) A (insert no .) 0 4947(a)(1) or El 527
L
(202) 303-5300
17th & D Streets, N.W .
City or town, state or country, and ZIP + 4
G Website : " www.
J
53 : 0196605
Number and street (or P .O. box if mail is not delivered to street address) Room/suite
16
17
Payments to affiliates (attach sched 1~1-. FES .l S 2005 . Q .
Total expenses (add lines 16 and 4 , c
Lr .
.
18
19
20
21
Excess or (deficit) for the year (subt ct li109DENgeLPT. . ', . . .
Net assets or fund balances at beginning o eai'"(TriTTf'~T~TS~C~umn (A)) .
Other changes in net assets or fund balances (attach explanation) .
. .
Net assets or fund balances at end of year (combine lines 18, 19, and 20)
.
.
10c
11
12
13
14
15
76
17
18
19
20
21
617 696293
2 , 311 , 183 ,621
0
135 , 756
54 , 223 , 306
2 ,743 , 056
0
19 ,750, 642
28 ,285,242
0
31 ,523 ,440
3 ,065,541 ,356
2 , 891 ,973,863
170,345,765
111 178153
0
3 , 173,497 ,781
( 107 ,956 ,425)
2 , 166 ,816 ,327
142 121456
2 , 200,981 ,358
Form 990 (2003)
MGA
For Paperwork Reduction Act Notice, see the separate instructions .
Ln.ld-No single contributor gave more than 2% of total contrib,gifts,or grants ; Ln 8c-see Stmt 1 ;Ln 9a-See Stint 2A ; Lo 20-See Stmt 2
Form 990 (2003)
V
Page
All organizations must complete column (A) Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organ¢atwns
and section 4947(a)(1) nonexempt charitable trusts but optional for others (See page 22 of the instructions)
Statement of
Functional Expenses
Do not include amounts reported on line
6b, 8b, 9b, 10b, or 16 Of Pelt l.
22
(B) Program
services
(N Total
Grants and allocations (attach schedule) .
(C) Management
and general
(D) Fundraising
)
22
0
23
Specific assistance to individuals (attach schedule)
23
118,433,399
24
Benefits paid to or for members (attach schedule).
24
0
0
25
Compensation of officers, directors, etc. .
.
Other salaries and wages .
.
.
.
.
.
23
2, 505,152
2,243,129
173,054
88 ,969
.
26
1,251,368,525
1,120,483,525
86 , 443,49 5
44 , 441,505
(cash $
26
noncash $
.
.
.
.
.
27
31 ,974,844
29 ,594,282
1, 493,795
886, 767
28
199,169,482
175,618,345
7310,981
.
.
.
.
.
.
29
107,378 ,536
98,102,807
16 , 240, 156
5, 863,844
3, 411, 885
Professional fundraising fees .
.
.
.
30
8,297,013
0
0
8, 297, 013
31
5,494, 556
2, 348, 263
2,928,997
217, 296
32
12 ,556, 828
11 , 463, 155
1,045,782
47,891
531,613, 789
517, 103, 823
4,328,295
10181671
1,191,002
Pension plan contributions
29
Payroll taxes
30
31
32
33
34
Other employee benefits
.
.
.
.
.
.
.
.
.
.
.
Accounting fees
.
.
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Legal fees
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,
,
.
,
,
Supplies
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.
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,
,
33
Telephone
.
.
.
.
.
.
.
,
34
31377 373
28 , 566, 707
1 619 664
,
35
54 , 797, 755
48 , 132,335
1 063 413
5602,007
,
36
94 , 617,735
91284 761
1,305448
2,027,526
37
28 ,892, 621
25 , 059,031
2,968,858
864,732
38
16 , 918, 575
12 , 386,819
1,231,575
3,300,181
60 , 908,211
55 , 607,311
3,552718
1748182
5, 098,749
3,389,270
1,038, 007
671472
34,598,563
31 ,554,552
2,707, 767
.
.
.
,
,
.
.
.
.
,
.
.
.
Postage and shipping
36
Occupancy
37
Equipment rental and maintenance .
.
.
.
.
35
38
.
.
.
.
.
.
.
.
Printing and publications
.
.
.
.
39
Travel
.
.
.
.
40
Conferences, conventions, and meetings .
41
Interest
42
Depreciation, depletion, etc (attach schedule)
Other expenses not covered above (itemize) a . . . . . . . . . .
43a
Auto Rental & Maintenance
43c
43
.
.
.
.
.
.
.
.
.
.
.
.
,
,
.
39
40
.
MiuorEquipment
41
42
43b
43d
Other Contractual Services
44
99
.
27
28
118,43 3
43e
Other
Assistance
---------------------
Total functional expenses (add lines 22 through 43) Orgamzabons
completing columns (8)-(D), ca these totals to tines 13-15 .
44
336,244
95 , 235,096
78,873,464
13 ,764,650
2,596,982
26571358
24473480
1659229
438649
0
31 ,550,082
30,974,496
0
437,325
0
138 , 261
415,663,642
380,222,213
19 , 076 , 328
16 ,365,101
3,173,497,781
2,891,973,863
170, 345,765
111,178,153
8,475,897
6,058,696
1,403, 365
1,013 ,836
Joint Costs. Check " [M if you are following SOP 98-2
Are any joint costs from a combined educational campaign and fundraising solicitation reported m (B) Program services? . " X1 Yes El No
2,184,367 ; (i) the amount allocated to Program services $
967,349 ;
If "Yes," enter () the aggregate amount of these ant costs $
(ii) the amount allocated to Mana gement and general $
j/
105, 422 ; and (v) the amount allocated to Fundraisin g $
Statement of Program Service Accomplishments (See page 25 of the instructions)
1,111,596
What is the organization's primary exempt purpose? " _Help_peopleprevent,_prepare&_respond toemergencies. .__, Program Service
Expenses
for
All organizations must describe their exempt purpose achievements in a clear and concise manner . State the number (r~qired sn(dq
(4)0rg.-"49471a)(i)
of clients served, publications issued, etc . Discuss achievements that are not measurable . (Section 501(c)(3) and (4)
°"usm
organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others )
See -Statement
4 and Consolidated Financial Statements
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------- --------------------------------------------(Grants and allocations
$
118,433,399
)
b
-------------- -------------------------------- ---------------------------------------------------------------------------
-------------- -----------------------------------------------------------------------------------------------------------$
)
(Grants and allocations
c
----------------------------------------------------------------------------------------------------------------------------------------
d
-------------------------------
----------------------------------------------------------------------------
(Grants and allocations
$
)
-------------- ------------------------------- ----------------------------------------------------------------------------
-------------- ---------
--------------- ----------------------------------------------------------------------------
e Other program services (attach schedule)
(Grants and allocations
(Grants and allocations
$
$
f Total of Program Service Expenses (should equal line 44, column (B), Program services) .
Line 23 - See Statement 3 ; Line 42 - See Consolidated Financial Statements Note 1
)
)
. "
2,891,973,863
Form 990 (2003)
Form 990 (2003)
Pag e 3
Balance Sheets (See page 25 of the instructions .)
Note :
45
46
Where required, attached schedules and amounts within the description
column should be for end-of-year amounts only.
Cash-non-interest-bearing
. . . . .
Savings and temporary cash investments .
47a Accounts receivable . . . . . . .
b Less: allowance for doubtful accounts .
48a Pledges receivable . . . . . . .
b Less : allowance for doubtful accounts .
49
Grants receivable . . .
. . .
.
.
.
.
.
.
.
.
.
47a
47b
.
.
.
Prepaid expenses and deferred charges .
Investments-securities (attach schedule) .
55a Investments-land,
equipment : basis .
.
buildings,
. . .
,
59
.
and
, ,
b Less : accumulated depreciation (attach
schedule) . . . . .
. . . . .
56
Investments-other (attach schedule) . .
57a Land, buildings, and equipment : basis . .
b Less : accumulated depreciation
schedule) .
. . . . . . .
58
Other assets (describe "
.
.
.
,
.
,
,
6,984,922
132,759,992
1 .763.078
. . . . . . .
and
50
Receivables from officers, directors, trustees,
key employees
(attach schedule) . . .
. . . . . .
. . . . . . . . .
51a Other notes and loans receivable (attach
51a
0
schedule) . . . . . . . . . . .
51b
0
b less : allowance for doubtful accounts . .
, , ,
52
Inventories for sale or use . . . . . .
. . . . .
53
54
.
.
241,261,621
VMR
48a
48b
.
.
.
(A)
Beginning of year
.
. .
. "
El . cost D . FMV
55b
. 57a .
(attach
, , ,
.
, , , , ,
1 , 794,300,918
792,380,425
57b
-
Total assets (add lines 45 through 58) (must equal line 74) .
y
v
m
c
LL
0
12
Total liabilities (add lines 60 through 65) .
Organizations that follow SFAS 117, check
67 through 69 and lines 73 and 74
87
Unrestricted
, , . , . . . .
88
Temporarily restricted
. . . .
.
89
Permanently restricted . . .
578,520,602
544,882,723
239, 218 , 332
47c
234,276,699
140, 659 , 982
0
48c
49
130,996,914
0-
0
0
0
169,353,654
74,297,120
0
1,026,460,817
55c
56
0
1,101,546,685
hiii
57c
58
1,001,920,493
)
.
3,333,188,647
.
371 ,792 ,965
0
0
0
223,291,949
197, 125,402
374,162,004
0 -
59
60
61
62
63
64a
64b
65
3,374,468,233
365,254, 173
0
0
0
220,616,743
222 , 703,331
364,912,628
1, 166,372 ,320
66
1 , 173 , 486 9 875
1 , 292 , 937,231
470,273,486
403,605,610
67
68
69
1 ,359 , 126 , 009
412,800,255
429,055,094
here " 0 and complete lines
.
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,
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,
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,
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.
.
,
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.
,
,
,
,
,
,
,
,
Organizations that do not follow SFAS 117, check here " 0 and
complete lines 70 through 74 .
70
Capital stock, trust principal, or current funds . .
. . . . .
71
Paid-in or capital surplus, or land, budding, and equipment fund
72
Retained earnings, endowment, accumulated income, or other funds
73
50
///
51c
52
53
54
0
170,920,391
89,567,004
930,109,637
Accounts payable and accrued expenses . . . . . . . . . .
Grants payable
. . . . . . . . . . . . . . . . . .
Deferred revenue . .
. . . . . . . . . . . . . . .
Loans from officers, directors, trustees, and key employees (attach
63
schedule) . . . . . . . . . . . . . . . . . . . . .
64a Tax-exempt bond liabilities (attach schedule)
. . . . . , , ,
, ,
b Mortgages and other notes payable (attach schedule)
~
65
Other liabilities (describe " pastreNrement benefits, other liabilities
66
117,193 945
45
46
55a
60
61
62
-
157,731,882
(B)
End of year
Total net assets or fund balances (add lines 67 through 69 or lines
70 through 72 ;
column (A) must equal line 19 ; column (B) must equal line 21) . .
Total liabilities and net assets / fund balances (add lines 66 and 73)
70
71
72
2,166,816,327
3,333,188,647
73
I 74 I
2,200,981,358
3,374,468,233
I
74
Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a
particular organization . How the public perceives an organization in such cases may be determined by the information presented
on its return . Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's
programs and accomplishments .
Ln 56- See Con . F/S Note 1 ;Ln 57b-See Con . F/S Note 3 ;Ln 64a-See Stmt 5 ; Lns . 64a & 64b represent the amt . in Con F/S Note 4
Pie 4
Form 990 (2003)
'-
Reconciliation of Revenue per Audited
Financial Statements with Revenue per
Return (See page 27 of the instructions.)
a
b
Total revenue, gains, and other support
per audited financial statements . . "
Amounts included on line a but not on
line 12, Form 990 :
(1) Net unrealized gains
on investments . . $
(2) Donated
services
and use of facilities $
(3) Recoveries of prior
year grants
(4) Other (specify) :
Rental expense
a
3 179 514 f
b
22,782,188
Line a minus line b. . . . .
Amounts included on line 12,
(3) Losses reported on
. "
(4)
b
113 , 973 , 493
c
3 065 541 356
(1) Investment expenses
(2) Other (specify):
22,782,188
$
(54,103,000)
3145 349.
line 20, Form 990 .
Other (specify) .
b
c
28 147963
3 173 497 781
d
0
Rental expense
----------------------
c
d
$
3,172,849
---------------------Add amounts on fines (1) through (4)"
Line a minus line b . . . . . "
Amounts included on line 17,
Form 990 but not on line a:
(1) Investment expenses
not included on line
6b, Form 990 .
$
---------------------- $
e
$
a
reported on line 20,
Form 990 .
Form 990 but not on line a:
not included on line
6b, Form 990 . . .
Total expenses and losses per
audited financial statements . . "
Amounts included on line a but not
on line 17, Form 990:
(1) Donated services
and use of facilities
(2) Prior year adjustments
88.018,456
3,172,849
------ '------- ----- $
Add amounts on lines (1) through (4) "
c
d
a
Reconciliation of Expenses per Audited
Financial Statements with Expenses per
Return
Add amounts on lines (1) and (2) "
Total revenue per line 12, Form 990
d
0
(2) Other (specify):
---- - --- - - - -- - --- - ---- - --- $
Add amounts on lines (1) and (2) "
e
Total expenses per line 17, Form 990
----------------- -
3,173,497,781
.
. "
(line c plus line d)
. "
e
e 3,065,541,356
List of Officers, Directors, Trustees, and Key Employees (List each one even if not compensated ; see page 27 of
the instructions .)
(line c plus line d) .
(l) Name and address
(B) Trtle and average hours per
week devoted to position
See Statement 10
--------------------------------------------------------------
(N) Comp
Contribution s
not
id, enter employee
pl ans ~ account aped other
-0-.1
deferred compensation
allowances
1
18
----------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------
75
Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your
organization and all related organizations, of which more than $10,000 was provided by the related organizations? "
If "Yes," attach schedule--see page 28 of the instructions .
Part IV-A, b(1) - amount represents unrealized gains on investments.
E] Yes D No
Form 990 (2003)
Form 990 (2003)
Page rJ
FOM Other Information See page 28 of the instructions .
76
77
78a
b
79
80a
b
Sia
b
82a
b
83a
b
84a
b
85
b
Yes
76
Did the organization engage in any activity not previously reported to the IRS? If "Yes," attach a detailed description of each activity .
77 X
Were any changes made in the organizing or governing documents but not reported to the IRS? . . .
If "Yes," attach a conformed copy of the changes .
W®RWE
78a X
Did the organization have unrelated business gross income of $1,000 or more dunng the year covered by this return? .
78b X
If "Yes," has it filed a tax return on Form 990-T for this year? . .
. . . . .
. . . , , ,
79
Was there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement
Is the organization related (other than by association with a statewide or nationwide organization) through common ~~
SOa X
membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organization? . . ,
Pathogen
Removal
&_
Diagnostic
Technologies_(PRDT)
If "Yes," enter the name of the organization " - --------------- ------------------------------------------See_Part
IX - IRS Form
990
_ . _ _ _ _ _ _ and check whether it is D exempt or N nonexempt.
--------------------------------------81a
Enter direct and indirect political expenditures . See line 81 instructions . . .
81b
Did the organization file Form 1120-POL for this year?. . . . . . . .
. . . . . . . . .
Did the organization receive donated services or the use of materials, equipment, or facilities at no charge
82a X
or at substantially less than fair rental value? . . . . . . . . . . .
. . . . . . . , .
If "Yes," you may indicate the value of these items here. Do not include this amount
22 ,782,188
as revenue in Part I or as an expense in Part II . (See instructions in Part III.) . . 82b
83a
Did the organization comply with the public inspection requirements for returns and exemption applications?
83b
,
_
Did the organization comply wrth the disclosure requirements relating to quid pro quo contributions?
84a
,
.
.
.
.
,
Did the organization solicit any contributions or gifts that were not tax deductible? . .
If "Yes," did the organization include with every solicitation an express statement that such contributions
84b
or gifts were not tax deductible? . . . . . . . . . . . . . . . . . . . . . . , . _
85a
501(c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members?
. , , .
85b
, .
Did the organization make only in-house lobbying expenditures of $2,000 or less? .
. , .
If "Yes" was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization
received a waiver for proxy tax owed for the prior year.
85c
N/A
Dues, assessments, and similar amounts from members . . . . . . . .
85d
N/A
Section 162(e) lobbying and political expenditures . . . . . . . .
85e
N/A
Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices . .
85f
N/A
Taxable amount of lobbying and political expenditures (line 85d less 85e) . .
c
d
e
f
g Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? .
h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its
reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax
year?. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . .
. . .
N/A
86 501(c)(7) orgs . Enter: a Initiation fees and capital contributions included on line 12 . . 86a
87
b Gross receipts, included on line 12, for public use of club facilities . .
501(c)(T2) orgs. Enter : a Gross income from members or shareholders .
.
.
.
.
,
,
86b
87a
No
X
r.
X
X
85h
N/A
N/A
b Gross income from other sources . (Do not net amounts due or paid to other
87b
N/A
. . . . . . . .
sources against amounts due or received from them .)
88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or
partnership, or an entrty disregarded as separate from the organization under Regulations sections
301 .7701-2 and 301 .7701-3? If "Yes," complete Part IX . . . . . .
89a 501(c)(3) organizations . Enter: Amount of tax imposed on the organization during the year under:
0
0
0
section 4911 "
; section 4912 "
; section 4955 "
b 501(c)(3) and 501(c)(4) orgs. Did the organization engage in any section 4958 excess benefit transaction
during the year or did it become aware of an excess benefit transaction from a prior year? If "Yes," attach
a statement explaining each transaction . . . . . . . . . . . . . . . . . . . . . . .
c Enter: Amount of tax imposed on the organization managers or disqualified persons during the year under
sections 4912, 4955, and 4958 . . . . . . . . . .
. . . . . . . . . . . . . "
d Enter: Amount of tax on line 89c, above, reimbursed by the organization .
. . . . . . . . "
90a List the states with which a copy of this return is filed " NONE
1 90b 1
b Number of employees employed in the pay penod that includes
12, 2003 (See instructions .)
- March
------ -----------91
92
89b
N/A
N/A
Telephone no " 002) _303-_5300
The books are in care of " Financial Management
025 E Street, N :W:, Washington, DCZIP
--------------------------------Located at "
+ 4 " __20006
Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041-Check here
and enter the amount of tax-exempt interest received or accrued during the tax year
.
Line 77 - See Statement 11 ; Line 78b - Extension granted ; Form 990-T to be tiled by February 15, 2005 .
" 1 92 1
X
35,820
N/A
Form 990 (2003)
Form 990 (2003)
MIM
Note: Enter gross amounts unless otherwise
indicated.
93
Page s
Analysis of Income-Producing Activities See page 33 of the instructions.
Program service revenue :
Biomedical Services
b Cost Recovery Programs (supplies/textbooks)
Fees & Contracts from Private Agencies
Unrelated business income
(A)
Business code
(B)
Amount
Excluded by section 512, 513, or 514
(C)
Exclusion code
(D)
Amount
(E)
Related or
exempt function
income
2,119,297,388
145,060,665
5,882,603
d
e
f Medicare/Medicaid payments .
Fees and contracts from government agencies
94
Membership dues and assessments
95
Interest on savings and temporary cash investments
86
Dividends and interest from securities . . .
97
Net rental income or (loss) from real estate:
a debt-financed property . . . . , . , ,
40,942,965
g
331120
96,714
b not debt-financed property . . . . . . .
98 Net rental income or (loss) from personal property
99 Other investment income
100
101
102
103
Gam or (loss) from sales of assets other than inventory
Net income or (loss) from special events . .
Gross profit or (loss) from sales of inventory .
Other revenue : a Purchases/refunds/etc.
Charitable gaming
Parking garage
d S-Corporation income
Other
713200
812930
513100
541800
1,593,334
300,006
56,461
37,222
2,083,737
14
14
135,756
54,223,306
16
2,646,342
18
01
19,750,642
28,285,242
15
10,845,179
18,691,238
~115,886,467 ~ 2,329,874,859
104
Subtotal (add columns (B), (D), and (E))
2,447,845,063
105 Total (add line 104, columns (B), (D), and (E)) . , . . . . . . . . . . . . . . . "
Note: Line 105 plus line 1d, Part l, should equal the amount on line 12, Part I.
Relationship of Activities to the Accom plishment of Exempt Purposes See p a g e 34 of the instructions .
Line No.
Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment
of the organization's exempt purposes (other than by providing funds for such purposes) .
See Statement 12
Information R egardin g Taxable Subsidiaries and Disre garded Entities See page 34 of the insti
A
s
(C)
(p)
Name, address, and EIN of corporation,
Perce~ta9e of
Nature of activities
Total income
p artnershi p , or disre garded entity
ownership interest
PRDT, Washington, DC ; EIIV : 010587732
51.00 % Research & Development
0
intormation rsegarding i ransters associates witn Personal ttenetrc contracts (5ee page 34 c
(a) Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?
(b) Did the organization, during the year, pay premiums, direc
Note : If "Yes" to (b), file Form 8870 and Form 4720 (see inst
Please
Sign
Here
Paid
Preparer's
Use Only
4,249
D Yes D No
SCHEDULE A
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Name of the organization
Organization Exempt Under Section 501(c)(3)
X003
Supplementary Information-(See separate instructions .)
" MUST be completed by the above organizations and attached to their Form 990 or 990-EZ
Employer identification number
American National Red Cross & Its Constituent Chapters and Branches
''
OMB No. 1545-0047
(Except Private Foundation) and Section 501(e), 5010, 501(k),
501(n), or Section 4947(a)(1) Nonexempt Charitable Trust
53 : 0196605
compensation or the rive rngnest raja tmpioyees vmer ii nan wmcers, uirectors, ana i rusiees
(See page 1 of the instructions. List each one . If there are none, enter "None.")
(a) Name and address of each employee paid more
than $50,000
(b) Title and average hours
per week devoted to position
(c) Compensation
(d) Contributions to
employee benefit plans &
(e) Expense
account and other
See Statement 13
--------------- -----------------------------------------
--------------------------------------------------------
---------------------------------------------------------
------------------------------------ -------------------
Total number of other employees paid over
$50,000 . . . . . . . . .
. .
"
IMM
6,430
Compensation of the Five Highest Paid Independent Contractors for Professional Services
(See page 2 of the instructions . List each one (whether individuals or firms) . If there are none, enter "None.
(a) Name and address of each independent contractor paid more than $50,000
(b) Type of service
Northrop Gruman Federal Civil Systems, Inc.
IT consultant on biomedical
---------------------------------------------- ----------------------------------------computer systems & maint.
8110 Gatehouse Road, Falls Church, VA 22042
Chimes,
Incorporated
--------------------------------------
I
(c) Compensation
22,356,744
Provides temporary staff for
information technology
5455 Corporate Drive, Suite 303, Troy, MI 48098
18,124,148
Quintiles,Incorporated______________
.________________________________ ._______,_______IAssurance/control consulting
--- - ----------------on regulated functions
1801 Rockville Pike, Suite 300, Rockville, MD 20852
Nerve,
- Incorporated
---------------------------------
Provides preparedness
campaign advertising pieces
600 NW 14th Avenue, Suite 100, Portland, OR 97209
New World Health
Provides medical education
consultation
41 Madison Avenue, New York, NY 10010
Total number of others receiving over $50,000 for
professional services . . . . . . . .
"
For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 99U-EZ.
317
MGA
Schedule A (Form 990 or 990-EZ) 2003
2
Schedule A (Form 990 or 990-EZ) 2003
Statements About Activities (See page 2 of the instructions .)
1
Yes I No
During the year, has the organization attempted to influence national, state, or local legislation, including any
attempt to influence public opinion on a legislative matter or referendum? If "Yes," enter the total expenses paid
538,715
or incurred in connection with the lobbying activities " $
(Must equal amounts on line 38,
Part VI-A, or line i of Part VI-B .)
. . . . .
. . . . . . . . . . . . . .
. . . . .
1
X
Organizations that made an election under section 501(h) by filing Form 5768 must complete Part VI-A . Other
organizations checking "Yes" must complete Part VI-B AND attach a statement giving a detailed description of
the lobbying activities .
2
During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any
substantial contributors, trustees, directors, officers, creators, key employees, or members of their families, or
with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority
owner, or principal beneficiary? (If the answer to any question is "Yes," attach a detailed statement explaining the
transactions.)
a Sale, exchange, or leasing of property?
. . . . .
b Lending of money or other extension of credit?
. .
c Furnishing of goods, services, or facilities?
. .
.
d Payment of compensation (or payment or reimbursement
e Transfer of any part of its income or assets? . .
.
.
. . .
. . .
. . . .
of expenses
. . . .
. .
.
. . .
. . . . . . . .
. .
. . . . .
if more than $1,000)?
. . . . . . . .
3a
Do you make grants for scholarships, fellowships, student loans, etc .? (If "Yes," attach
you determine that recipients qualify to receive payments .) . . . . . . . . .
b Do you have a section 403(b) annuity plan for your employees? . . .
. . . .
4
Did you maintain any separate account for participating donors where donors have the
on the use or distribution of funds? .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
,
.
.
.
.
.
.
.
an explanation of how
. . . . . , ,
. . . . . . , ,
right to provide advice
2a
2b
2c
2d
2e
3a
3b
X
X
X
X
X
X
X
4
X
Reason for Non-Private Foundation Status (See pages 3 through 6 of the instructions .)
The organization is not a private foundation because it is : (Please check only ONE applicable box .)
5
6
7
B
9
10
[~
[]
[~
El
El
A church, convention of churches, or association of churches . Section 170(b)(1)(A)(i) .
A school . Section 170(b)(1)(A)(ii) . (Also complete Part V .)
A hospital or a cooperative hospital service organization . Section 170(b)(1)(A)(iii) .
A Federal, state, or local government or governmental unit Section 170(b)(1)(A)(v) .
A medical research organization operated in conjunction with a hospital . Section 170(b)(1)(A)(ui) . Enter the hospital's name, city,
and state " ------------------------------------------------------------------------------------------------------------------------------
D An organization operated for the benefit of a college or university owned or operated by a governmental unit . Section 170(b)(1)(A)(iv) .
(Also complete the Support Schedule in Part IV-A .)
11a IN An organization that normally receives a substantial part of its support from a governmental unit or from the general public .
Section 170(b)(1)(A)(vi) . (Also complete the Support Schedule in Part IV-A .)
lib D A community trust . Section 170(b)(1)(A)(vi) . (Also complete the Support Schedule in Part IV-A .)
12 El An organization that normally receives : (1) more than 33'/3% of its support from contributions, membership fees, and gross
receipts from activities related to its charitable, etc ., functions-subject to certain exceptions, and (2) no more than 33'/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired
by the organization after June 30, 1975. See section 509(a)(2) . (Also complete the Support Schedule in Part IV-A.)
13
El An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations
described in : (1) lines 5 through 12 above; or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2) . (See
section 509(a)(3) .)
Provide the following information about the supported organizations . (See page 5 of the instructions .)
(b) Line number
(a) Name(s) of supported organization(s)
from above
14
E] An organization organized and operated to test for public safety . Section 509(a)(4) . (See page 6 of the instructions .)
Line 1 - See Statement 6 ; Line 2d - See Form 990 Part V ; Line 3 - See Statement 7
Schedule A (Form 990 or 990-EZ) 2003
Schedule A (Form 990 or 990-EZ) 2003
Page
Support Schedule (Complete only if you checked a box online 10, 11, or 12 .) Use cash method of accounting.
Note: You may use the worksheet in the instructions for converting from the accrual to the cash method of accounting.
Calendar year (or fiscal year beginning in) . "
(a) 2002
(b) 2001
(c) 2000
(d) 1999
15
Gifts, grants, and contributions received . (Do
not include unusual grants . See line 28 .) .
651, 720,797
1 , 809,562 ,9711
728, 540, 119
702 , 749, 674
16
Membership fees received ,
17
Gross receipts from admissions, merchandise
sold or services performed, or furnishing of
facilities in any activity that is related to the
organization's charitable, etc ., purpose . .
1 ,904,988 ,4413
2, 272,786, 165
2, 165,324 ,233
1 1 683, 603, 196
18
Gross income from interest, dividends,
amounts received from payments on securities
loans (section 512(a)(5)), rents, royalties, and
unrelated business taxable income Qess
section 511 taxes) from businesses acquired
by the organization after June 30, 1975 .
76,746 ,531
87 , 597 , 998
86 ,240, 611
90,785,509
19
Net income from unrelated business
activities not included in line 18 . . . ,
20
(e) Total
31892 ,573 , 561
p
8 026 702 037
341370 649
p
Tax revenues levied for the organization's
benefit and either paid to it or expended on
its behalf. . . . . . . .
. . .
0
21
The value of services or facilities furnished to
the organization by a governmental unit
without charge. Do not include the value of
services or facilities generally furnished to the
public without charge. . . . . . . .
p
22
23
24
25
Other income . Attach a schedule . Do not
include g ain or (loss) from sale of capital assets
Total of lines 15 through 22 . .
Line 23 minus line 17 .
Enter 1 % of line 23 . . . . . .
. .
26
Organizations described on lines 10 or 11 :
27, 168,897
3, 028 , 422,390
755,636,225
30.284124
a
20,731 ,837
4, 083,217 ,039
1 ,917,892 ,806
40.832 .170
23,385 ,791
2,743, 154 ,964
838, 166 ,521
27 .431 .550
Enter 2% of amount in column (e), line 24 .
.
37, 971, 164
2 , 515 , 109, 543
831 , 506,347
25.151.095
zsa
. . "
b
Prepare a list for your records to show the name of and amount contributed by each person (other than a
governmental unit or publicly supported organization) whose total gifts for 1999 through 2002 exceeded the
amount shown in line 26a. Do not file this list with your return . Enter the total of all these excess amounts "
c Total support for section 509(a)(1) test : Enter line 24, column (e) . . . . . . . . . . . . . "
341,370,649
19
0
d Add : Amounts from column (e) for lines: 18
109,257,689 26b
. . . . . . "
22
e
f
27
Public support (line 26c minus line 26d total)
. . . . . . . . . . . . .
Public support percentage (line 26e (numerator divided by line 26c (denominator))
.
.
.
.
. "
. "
~
26b
26c
109,257 , 689
12 369 903 936
4 )3431201 , 899
86,864,038
4,343,201,899
V///// POWWWWWO/o
26d
450, 628,3 38
26e 3,892, 573,561
26f
89.62
Organizations described on line 12:
a For amounts included in lines 15, 16, and 17 that were received from a "disqualified
person," prepare a list for your records to show the name of, and total amounts received in each year from, each "disqualified person ."
Do not file this list with your return. Enter the sum of such amounts for each year:
b
(2002) --------------------------- (2001) --------------------------- (2000) --------------------------- (1999) --------------------------For any amount included in line 17 that was received from each person (other than "disqualified persons"), prepare a list for your records to
show the name of, and amount received for each year, that was more than the larger of (i) the amount on line 25 for the year or (2) $5,000 .
(Include in the list organizations described in lines 5 through 11, as well as individuals) Do not file this list with your return . After computing
the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these differences (the excess
amounts) for each year:
(2002) --------------------------- (2001) --------------------------- (2000)
c Add: Amounts from column (e) for lines:
d Add: Line 27a total
e
f
17
16
15
20
.
--------------------------- (1999)
21
and line 27b total .
Public support (line 27c total minus line 27d total).
,
.
.
.
.
.
,
.
Total support for section 509(a)(2) test' Enter amount from line 23, column (e) .
.
.
10
,
,
,
,
,
. "
,
.
.
.
,
. "
.
.
. "
I 27f
g Public support percentage (line 27e (numerator) divided by line 27f (denominator) .
.
.
.
, t
h Investment income percentage (line 18, column (e) (numerator) divided by line 27f (denominator) . "
28
---------------------------
27c
27d
27e
WN"
279
27h
Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 1999 through 2002,
prepare a list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief
description of the nature of the grant. Do not file this list with your return . Do not include these grants in line 15 .
Line 21 - See Statement 8; Line 22 - See Statement 9
Schedule A (Form 990 or 990-EZ) 2003
Schedule A (Form 990 or 990-EZ) 2003
Page
Private School Questionnaire (See page 7 of the instructions .)
(To be completed ONLY by schools that checked the box on line 6 in Part 11/)
29
Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws,
30
Does the organization include a statement of its racially nondiscriminatory policy toward students in all its
other governing instrument, or in a resolution of its governing body?
.
.
.
.
.
.
.
.
.
.
.
.
.
brochures, catalogues, and other written communications with the public dealing with student admissions,
programs, and scholarships? .
31
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during
the period of solicitation for students, or during the registration period if it has no solicitation program, in a way
,
,
that makes the policy known to all parts of the general community it serves?. .
.
.
.
.
.
.
.
Yes
No
29
~~
~~
31
If "Yes," please describe ; if "No," please explain. (If you need more space, attach a separate statement)
------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- ---------------------- -------------------------------------------------------------
32
Does the organization maintain the following:
a
Records indicating the racial composition of the student body, faculty, and administrative staff?
b
Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory
c
d
basis?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Copies of ail catalogues, brochures, announcements, and other written communications to the public dealing
. ,
,
with student admissions, programs, and scholarships? .
.
.
.
.
.
.
.
.
.
. .
. . . ,
Copies of all material used by the organization or on its behalf to solicit contributions?
.
.
.
.
.
,
.
,
32b
32c
32d
If you answered "No" to any of the above, please explain . (If you need more space, attach a separate statement .)
------------------------------------------------------------------------------------- ------------------------------------33
Does the organization discriminate by race in any way with respect to:
--------------------------------------------------------------------------------------------------------------------------a
Students' rights or privileges? .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
b
Admissions policies?
.
.
.
.
.
.
.
.
.
.
.
.
.
c
Employment of faculty or administrative staff?
.
.
.
.
.
.
.
.
d
Scholarships or other financial assistance?
.
.
.
.
.
.
.
.
.
.
e
Educational policies?
.
.
.
.
.
f
Use of facilities? .
.
.
.
.
g
Athletic programs?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
h Other extracurricular activities?
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
If you answered "Yes" to any of the above, please explain (If you need more space, attach a separate statement .)
-------------------------------------------------------------------------- ---------------------- ----------------------------------------------------------------------------------------------- ---------------------- ---------------------------------------------------------------------------------------------------------------------- ---------------------34a
b
35
Does the organization receive any financial aid or assistance from a governmental agency
.
Has the organization's right to such aid ever been revoked or suspended
If you answered "Yes" to either 34a or b, please explain using an attached statement .
Does the organization certify that it has complied with the applicable requirements of sections 4 .01 through 4.05
of Rev . Proc . 75-50, 1975-2 C .B . 587, covering racial nondiscrimination? If "No," attach an explanation
Schedule A (Form 990 or 990-EZ) 2003
Schedule A (Form 990 or 990-EZ) 2003
Check " a
Page )
Lobbying Expenditures by Electing Public Charities (See page 9 of the instructions .)
(To be completed ONLY by an eligible organization that filed Form 5768)
0 if the organization belongs to an affiliated group .
Check " b El if you checked "a" and "limited control" provisions apply.
(b)
Limits on Lobbying Expenditures
To be completed
Affiliated group
for
ALL
electing
totals
organizations
(The term "expenditures" means amounts paid or incurred .)
Total lobbying expenditures to influence public opinion (grassroots lobbying)
. . .
Total lobbying expenditures to influence a legislative body (direct lobbying) .
Total lobbying expenditures (add lines 36 and 37) . . .
Other exempt purpose expenditures . . . . . . . . .
. . . . . .
Total exempt purpose expenditures (add lines 38 and 39) . . . . . . . , , ,
Lobbying nontaxable amount . Enter the amount from the following tableThe lobbying nontaxable amount isIf the amount on line 40 isNot over $500,000 . . . . . . . 20% of the amount on line 40
Over $500,000 but not over $1,004,004 . . $104,000 plus 15% of the excess over $500,000
Over $1,000,000 but not over $1,500,000 . $175,000 plus 10% of the excess over $1,000,000
Over $1,500,000 but not over $17,000,000 . $225,000 plus 5% of the excess over $1,500,000
Over $17,000,000 . . . . . . . . $1,000,000
.
. .
Grassroots nontaxable amount (enter 25% of line 41) .
. . . .
Subtract line 42 from line 36 . Enter -0- if line 42 is more than line 36 . . . . ,
Subtract line 41 from line 38 . Enter -0- if line 41 is more than line 38 . . .
38
37
38
39
40
41
42
43
44
.
36
.
39
40
41
0
J
.
42
43
44
Caution : If there is an amount on either line 43 or line 44, you muss file Form 4720.
4-Year Averaging Period Under Section 501(h)
(Some organizations that made a section 501 (h) election do not have to complete all of the five columns below .
See the instructions for lines 45 through 50 on page 11 of the instructions .)
Lobbying Expenditures During 4-Year Averaging Period
Calendar year (or
fiscal year beginning in) "
(a)
2003
I
(b)
2002
I
(c)
2001
(co
2000
I
I
(e)
Total
45
Lobbying nontaxable amount .
46
Lobbying ceding amount (150% of line 45(e)) .
47
Total lobbying expenditures
48
Grassroots nontaxable amount
49
Grassroots ceiling amount (150% of line 48(e))
50
Grassroots lobbying expenditures
Lobbying Activity by Nonelecting Public Charities
(For reporting only by organizati ons that did not complete Part VI-A) (See page 12 of the instructions .)
During the year, did the organization attempt to influence national, state or local legislation, including any
attempt to influence public opinion on a legislative matter or referendum, through the use of :
a
b
c
d
e
f
g
h
i
Volunteers . . . . . . . .
. . .
. . . . . . .
Paid staff or management (Include compensation in expenses reported on lines c through h .) .
Media advertisements . . . . . . . . . . . . . . . . . . . . . . .
. . . .
Mailings to members, legislators, or the public . . . . . .
. . . .
Publications, or published or broadcast statements
. . . . . . .
. . . . . .
Grants to other organizations for lobbying purposes . . . .
. . . . . . . . . .
Direct contact with legislators, their staffs, government officials, or a legislative body . . . .
.
Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means .
Total lobbying expenditures (Add lines c through h .) .
If "Yes" to any of the above, also attach a statement giving a detailed description of the lobbying
.
.
Yes
.
X
X
X
.
X
.
X
.
X
.
.
activities.
.
.
.
.
.
No
Amount
0
49, 628
29, 647
144, 250
299 333
15 857
538,715
Schedule A (Form 990 or 990-EZ) 2003
Schedule A (Form 990 or 990-EZ) 2003
Page 6
Information Regarding Transfers To and Transactions and Relationships With Noncharitable
Exempt Organizations (See page 12 of the instructions.)
51
a
Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section
501 (c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?
Yes No
Transfers from the reporting organization to a noncharitable exempt organization of :
(i) Cash
. . . . . . . . . . . .
. . . . . .
(ii) Other assets . . . . . . . . . . . . . . . . . . .
b Other transactions :
(i) Sales or exchanges of assets with a nonchantable exempt organization
(ii) Purchases of assets from a noncharitable exempt organization . . .
. . .
(iii) Rental of facilities, equipment, or other assets . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
51a(ij
AR-
X
X
b pi)
X
bE)
bCv)
b(v)
b(vi)
c
(iv) Reimbursement arrangements . . . .
. . . . . . . . . . . . . . . . . . .
X
(v) Loans or loan guarantees . . . . . . . . . , . . . . . . . . . . . . . , , ,
X
.
,
(vi) Performance of services or membership or fundraising solicitations
. . . . .
X
c Sharing of facilities, equipment, mailing lists, other assets, or paid employees . . . . . . . . . . ,
d If the answer to any of the above is "Yes," complete the following schedule Column (b) should always show the fair market value of the
goods, other assets, or services given by the reporting organization. If the organization received less than fair market value in any
transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received :
52a
Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527?
, . , , , , "
EJ Yes
D No
5471
Information Return of U.S. Persons With
Respect To Certain Foreign Corporations
t545-0704
Atteh e
Sequence No. 121
t See separate instructions.
(Rev. December 2004)
Department of the Treasury
internal Revenue Service
Information furnished for the foreign corporation's annual accounting period (tax year required by
section 898) (see instructions) beginning
July 1
, 20 03 , and ending June 30 , 20 04
File In Duplicate
(sea When and Where
To File on page 1 of
the instructions)
Name of person filing this return
A Identifying number
Number, street, and room or sulfa no (or P O box number If mail Is not delivered to street address)
B Category of filer (See page 1 of the instructions . Check applicable
American National Red Cross & Its Constituent Chapters & Branch s
17th $ D Streets, NW
box(es))
1 0
2 [1
3 0
4 [Z]
5 ~
C Enter the total percentage of the foreign corporation's voting stock
you owned at the end of its annual accounting period .. .. . . . . .1.U0.%
City or town, state, and 21P code
Washington, DC 20006
Filer's tax year beginning
D
53-0196605
, 20
and ending
Person(s) on whose behalf this information return is flied :
, 20
Address
(1) Name
Check
1 (3) Identifying number
Officer I Director
Important: Fill in all applicable lines and schedules. All information must be in English. All amounts must be stated
in U.S. dollars unless otherwise indicated.
1a Name and address of foreign corporation
Boardman Indemnity, LTD
Cumberland House
P .O . Box HM 2280, Hamilton, HMJX Bermuda
d
Date of Incorporation
5126188
2
a Principal place of business
b Employer Identification number, H any
None
c Country under whose laws Incorporated
Bermuda
f
Principal business activity
code number
Hamilton, IiMdX Berm
g Principal business activity
524290
h Functional currency
Insurance
US Dollar
Provide the following Information for the foreign corporation's accounting period stated above.
a Name, address, and identifying number of branch office or agent (d any) in
the Untied States
NIA
b Ii a U .S . Income tax return was fled, enter
I
(~J Taxable Income or (loss)
(t) U.S . Income tax paid
(after all credits)
N/A
c
Name and address of foreign corporation's statutory or resident agent in
country of Incorporation
Boardman Indemnity, LTD
N/A
d Name and address (including corporate department, ii applicable) of
person (or persons) with custody of the books and records of the foreign
corporation, and the location of such books and records, if different
Same
Stock of the Forei
Part I-All Classes of Stock
(a) Description of each class of stock
Part II-Additional Information for Preferred Stock
(To be completed onlv by Cateqorv 1 filers for
(a) Description of each class of Preferred stock
(Note : This description should match the corresponding
description entered in Part 1, column (a))
For Paperwork Reduction Act Notice, see page 13 of the instructions .
(b) Number of shares Issued end outstanding
p) Beginning of annual
accounting period
(!) End of annual
accounting period
10,000,000
10,000,000
i personal holding companies .)
(b) Par value m
functional currency
(c) Rate of dividend
cat No assasv
(d) Indicate whether the
stock is cumulative or
noncumulative
Foam 5471 (Rep . i2-zoom
Forth 5471 (Rev . 12-2004)
Page 2
U.S. Shareholders of Foreign Corporation See pa ge 4 of the
(a) Name, address, and identifying
number of shareholder
American National Red Cross
17th 8 D Streets, NW
Washington, DC 20006
(b) Description of each claw of stock held by
shareholder (Note: This description should match the
corresponding description entered !n Schedule A,
Part I, column (a).)
Common Stock
c) Number of
shares held at
beginning of
annual
ac counting period
(d) Number of
shares held at
end of annual
accounting
period
(e) Pro rata share
of subpart F
income (enter as
a percentage)
1 0,000,000 1 10,000,000 I
100%
E~
Income Statement (See page 5 of the instructions .)
Important: Report all information in functional currency in accordance with U.S. GAAP. Also, report each amount in
U.S . dollars translated from functional currency (using GAAP translation rules) . However, if the functional
currency is the U.S . dollar, complete only the U.S. Dollars column . See instructions for special rules for
DASTM corporations.
Functional Currency
m
p
1a
b
c
2
3
4
5
6
7
S
9
10
11
12
13
16 14
15
16
17
.
.
.
.
.
.
.
.
.
.
5
37,931
Compensation not deducted elsewhere . . .
Rents, royalties, and license fees , . . . .
Interest . . . . . . . . . . . . . .
Depreciation not deducted elsewhere
Depletion . . . . . . . . . . . . .
Taxes (exclude provision for Income, war profits, and excess profits taxes) .
Other deductions (attach sch dul
xc,~lu e ~r~ovision for income, war profits,
and excess profits taxes) . ~C~'~~TT. '(
Total deductions (add lines 10 through 16) . .
19
21
Current year net income or (loss) per books (combine lines 18 through 20)
y 20
Z
U .S. Dollars
.
.
.
,
.
.
.
.
.
,
Net income or (loss) before extraordinary items, prior period adjustments, and
the provision for income, war profits, and excess profits taxes (subtract line
17 from line 9)
Extraordinary items and prior period adjustments (see instructions)
18
0
Gross receipts or sales . . . . . .
Returns and allowances . . . . . .
Subtract line 1 b from line 1 a . . . .
Cost of goods sold . . . . . . .
Gross profit (subtract line 2 from line 1c)
Dividends . . . . . . . . . . .
Interest . . . . . . . . , . . .
Gross rents, royalties, and license fees .
Net gain or (loss) on sale of capital assets
Other income (attach schedule)
. .
Total income (add lines 3 through 8) .
37
1
Provision for income, war profits, and excess profits taxes (see instructions)
21 ~
1
(53,912)
Form 5471 (Rev . 12-2004)
Form 5477 (Rev. 12-2004)
Taxes Paid or Accrued (See page 5 of i
Amount of tax
(b)
In foreign currency
Name of country or U.S possession
1
2
3
Page 3
(d)
In U.S dollars
(c)
Conversion rate
U.
7
8
Total
. Balance Sheet
Important: Report all amounts in U.S. dollars prepared and translated in accordance with U.S . GAAP. See page 5 of
the instructions for an exception for DASTM corporations .
Assets
1
Cash
2a Trade notes and accounts receivable .
b Less allowance for bad debts . . .
3
Inventories . . . . . . , . . .
, Se e StrY1t .
. . . . . . .
. .
1 I
.
.
.
.
.
.
.
.
.
.
.
.
2a
2b
Z.
.
.
,
.
.
7
4
5
6
7
8a
b
9a
b
10
11
a
b
c
d
12
Other current assets (attach schedule) . .
Loans to shareholders and other related persons .
Investment in subsidiaries (attach schedule) .
Other investments (attach schedule) . , See ~~{'IMt
Buildings and other depreciable assets . . . . . .
Less accumulated depreciation . . . . . . . . .
Depletable assets . . . . . . . . . . . . .
Less accumulated depletion . . . . . . . . . .
Land (net of any amortization) . . . . . . . . .
Intangible assets :
Goodwill . . . . . . . . . . . . . .
Organization costs . . . . . . . . . . . . .
Patents, trademarks, and other intangible assets . . .
Less accumulated amortization for lines 11 a, b, and c
Other assets (attach schedule) . . .
13
Total assets
14
15
16
17
18
Accounts payable. . . . . . . . . . .
Other current liabilities (attach schedule) . . . . . . . .
.
Loans from shareholders and other related ersons
Other liabilities (attach schedule) . . ~~-e . 5~?.
Capital stock :
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
,
.
.
.
.
,
,
.
.
,
.
.
,
,
.
.
,
.
,
,
,
.
.
,
.
,
,
,
Liabilities and Shareholders' Equity
(al
Beginning of annual
accounting period
7
7,0821
(b)
End of annual
accounting period
10 .210
154
$a
$b
9a
9b
10
11f
lit
11(
11(
12
19,397
19,398
13
105,727,887
106,618,762
.
,
.
.
.
.
,
.
,
.
15
16
17
1
64, 725,829 1
71,002,172
10,000,000
10,000,000
a Preferred stock . . . . . . . . . .
b Common stock . . . . . . . . . .
19
Paid-in or capital surplus (attach reconciliation)
20
Retained earnings . . . . . . . . .
21
Less cost of treasury stock . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
,
,
.
.
,
,
,
.
.
,
,
,
.
.
,
,
,
18C
1181 :
19
.
.
20
21
27 .231 .957
20 .107 .910
22
.
.
.
.
.
.
.
.
.
.
.
22
105,727,887 1
106,618,762
Total liabilities and shareholders' eauitv
.
.
Form 5471 (Rev 12-2004)
'
" Form 5471 (Rev . 12-2004)
Page
Other Information
1
During the tax year, did the foreign corporation own at least a 10% interest, directly or indirectly, in any foreign
partnership? . . . . . . . . . . . . . . . . . . . . . . . .
If "Yes," see page 5 of the instructions for required attachment .
2
3
During the tax year, did the foreign corporation own an interest in any trust? .
. .
. . . . . . . .
During the tax year, did the foreign corporation own any foreign entities that were disregarded as entities separate
from their owners under Regulations sections 301 .7701-2 and 301 .7701-3 (see instructions)? , . . . . . .
If "Yes," you are generally required to attach Form 8858 for each entity (see instructions) .
VNI".1M
.
Yes No
D
D
D
Current Earnings and Profits (See page 5 of the instructions.)
1
Current year net income or (loss) per foreign books of account .
2
Net adjustments made to line 1 to determine current
earnings and profits according to U.S . financial and tax
accounting standards (see instructions):
Net
Additions
Net
Subtractions
a Capital gains or losses
b Depreciation and amortization
c Depletion . . . . .
d Investment or incentive allowance .
e Charges to statutory reserves .
f Inventory adjustments ,
g Taxes . . . . . . .
h Other (attach schedule)
3
Total net additions . .
4
Total net subtractions .
. . . . .
5a Current earnings and profits (line 1 plus line 3 minus line 4). . . . . . . . . . . , ,
b DASTM gain or (loss) for foreign corporations that use DASTM (see instructions) . . . . .
c Combine lines 5a and 5b . . . . . . . . . . . . . .
. .
, , ,
d Current earnings and profits in U .S . dollars (line Sc translated at the appropriate exchange rate as
defined in section 989(b) and the related regulations (see instructions)) . . . . . . . . .
Enter exchange rate used for line 5d 11o
5a
5b
5c
5d
of Shareholder's Income From Foreign Corporation (See page 5 of
1
Subpart F income (line 40b, Worksheet A in the instructions
2
Earnings invested in U .S . property (line 17, Worksheet B in the instructions) .
3
4
.
.
Previously excluded subpart F income withdrawn from qualified investments (line 6b, Worksheet
C in the instructions) . . . . . . . . . , . . . . . .
Previously excluded export trade income withdrawn from investment in export trade assets (line
7b, Worksheet D in the instructions) . . . . . . . . . .
5
Factoring income .
.
. .
.
.
.
.
.
.
.
.
.
. .
.
.
6
Total of lines 1 through 5. Enter here and on your income tax return . See page 6 of instructions
7
Dividends received (translated at spot rate on payment date under section 989(b)(1)) .
8
Exchange Qam or (loss) on a distribution of previously taxed income .
Was any income of the foreign corporation blocked? . . . .
. . . . . .
Did any such income become unblocked during the tax year (see section 964(b))?
If the answer to either question is "Yes," attach an explanation .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Yes No
. D
. D 91
Form 5471 (Rev 12-2004)
SCHEDULE J
(Form 5471)
(Rev
December2004)
Department of the Treasury
Internal Revenue service
Name of person filing Form 5471
Accumulated Earnings and Profits (E&P)
of Controlled Foreign Corporation
" Attach to Forth 5471 . See Instructions for Form 5471 .
American National Red Cross & Its Constituent Chapters and Brances
OMB No
1545-0704
Identifying number
53-0196605
Name of foreign corporation
Boardman Indemnity, LTD
1
Important: Enter amounts in
functional currency .
(a) Post-1986
Undistributed Earnings
(post-86 section
959(c)(3) balance)
Balance at beginning of year
13,743,669
(b) Pre-1987 E&P
Not Previously Taxed
(pre-87 section
959(c)(3) balance)
(c) Previously Taxed E&P (see instructions)
(sections 959(c)(1) and (2) balances)
("1 x^'"93 invested
01 Earnings invested
m Excess Passive
(W) Subpart F Income
in U S . Property
Amts
(d) Total Section
964(a) E&P
(combine columns
(a), (b), and (c))
5,000,000
5,686,939
24,430,608
(5,000,000)
(1,615,771)
0
4,071,168
01
4,071,168 1
2a Current year E&P
b Current year deficit in E&P
3
4
Total current and accumulated
E&P not previously taxed (fine 1
plus line 2a or line 1 minus line 2b)
53,912
13,689,757
Amounts included under section
951(a) or reclassified under
section 959(c) in current year
5a Actual distributions or
reclassifications of
previously taxed E&P
MW
M
b Actual distributions of
nonpreviously taxed E&P
6a Balance of previously taxed
E&P at end of year (line 1 plus
line 4, minus line 5a)
7
b Balance of E&P not previously
taxed at end of year (line 3
minus line 4, minus line 5b)
13,689,757
amount from line 6a or line 6b,
whichever is applicable.)
13,689,757
Balance at end of year. (Enter
For Paperwork Reduction Act Notice, see the Instructions for Form 5471 .
Cat No 21111K
17,760,925
Schedule J (Form 5471) (Rev 12-2004)
Transactions Between Controlled Foreign Corporation
and Shareholders or Other Related Persons
SCHEDULE M
(Form 5471)
(Rev. December 2004)
OMB No 1545-0704
Department of the Treasury
Internal Revenue Service
" Attach to Form 5471 . See Instructions for Form 5471 .
Name of person filing Form 5471
Identifying number
American National Red Cross 8 Its Constituent Chapters and Branches
I
53-0196605
Name of foreign corporation
Boardman Indemnity, LTD
Important Complete a separate Schedule M for each controlled foreign corporation . Enter the totals for each type of transaction that
occurred during the annual accounting period between the foreign corporation and the persons listed in columns (b) through (0 . All amounts
must be stated in U .S. dollars translated from functional currency at the average exchange rate for the foreign corporation's tax year. See
page 10 of the instructions.
relevant functional currenc
(a) Transactions
of
foreign corporation
1 Sales of
(inventory)
stock
in
and the exchan e rate used throw hout this schedule
(c) Any domestic
(d) Any other foreign
corporation or
corporation or
(b) U S . person
partnership controlled
partnership controlled
filing this return
by U.S. parson filmg
by U S . p arson filmg
this return
this return
(e) 10% or more U .S .
(n 10% or more U .S.
shareholder of controlled shareholder of any
foreign corporation
corporation
(other than the U S
controlling the
person fling this return)
foreign corporation
trade
2 Sales
of property rights
(patents, trademarks, etc .)
3 Compensation received for technical, managerial, engineering,
construction, or like services
4 Commissions received
5 Rents, royalties, and license
fees received
6 Dividends received (exclude
deemed distributions under
subpart F and distributions of
previously taxed income) .
7 Interest received
8 Premiums received for insurance or reinsurance
9 Add lines 1 through 8 .
10 Purchases of stock in trade
(inventory)
11 Purchases of tangible property
other than stock in trade .
12 Purchases of property rights
(patents, trademarks, etc.)
13 Compensation paid for technical, managerial, engineering,
construction, or like services .
14 Commissions paid .
15 Rents, royalties, and license
fees paid
16 Dividends paid .
17 Interest paid
18 Add lines 10 through 17 .
19 Amounts borrowed (enter the
maximum loan balance during
the year) - see instructions .
20 Amounts loaned (enter the
maximum loan balance during
the year) - see instructions .
5,000,000
For Paperwork Reduction Act Notice, see the Instructions for Form 5471 .
Cat . No 499630
Schedule nn (Form 5471) (Rev 12-2004)
American National Red Cross 8 Its Constituent Chapters and Branches
Boardman Indemnity Fund Calculations
Form 5471 - Schedule C Support
Fiscal Year Ending June 30, 2004
Line 16
Total underwriting expenses
Operating expenses
Other deductions
Functional
Currency
$
$
-
$
$
$
U .S.
Dollars
37,876,112
109,323
37,985,435
Statement Y
American National Red Cross 8 Its Constituent Chapters and Branches
Boardman Indemnity Fund Calculations
Form 5471 - Schedule F Support
Fiscal Year Ending June 30, 2004
Line 2
Accrued interest receivable
Insurance balances receivable
Outstanding losses recoverable from reinsurers
Reinsurance balances receivable
Premiums receivable
Total accounts receivable
Line 7
Beginning
Balance
$
-
$
$
$
$
$
$
$
$
$
6,366,000
6,366,000
$
$
$
$
$
$
$
$
Ending
Balance
28,157,230
25,634,090
20,505,499
7,246,602
3,579,310
3,643,046
6,457,377
95,223,154
Beginning
Balance
$
15,000
$
Ending
Balance
15,000
$
$
$
4,397
19,397
$
$
$
4,398
19,398
$
$
$
$
Beginning
Balance
29,315,627
44,758,617
(9,348,415)
64,725,829
$
$
$
$
Ending
Balance
34,060,185
45,368,422
(8,426,435)
71,002,172
Beginning
Balance
$ 9,192,154
$ 32,336,551
$ 22,430,911
$ 10,491,478
$ 5,087,440
$ 4,945,489
$ 9,199,385
$ 93,683,408
Money market fund
Short term bond fund
Diversified bond fund
Strategic stock fund
Broad market index fund
International stock fund
Long duration bond fund
Total investments
Line 12
Loss escrow fund
Prepaid reinsurance premiums
Due from Parent Company
Prepaid expenses
Total other assets
Line 17
Outstanding losses and loss adjustments
Incurred but not reported
Discount
7,018,000
7,018,000
Statement Z
Ending
Balance
-
June 30, 2004
53-0196605
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
Statement 1
PART I - LINE 8: SALE OF SECURITIES AND OTHER ASSETS
Securities
Net Gain
7.986.136
The gain or loss from sale of securities was shown on a net basis in the Consolidated Financial
Statements (Attachment A).
Other Assets
Net Gain
11 .764.506
Part I, Line 8 under "Other" details the proceeds from sale of fixed assets (less nominal expenses) and the
net book value of assets sold. Attachment A shows the original cost, or fair market value if donated, of
assets on hand for buildings and improvements and for major equipment with accumulated depreciation
in total for all assets .
The American National Red Cross fiscal policy provides for capitalization of land, buildings and major
equipment and recognition of depreciation, except on land, as a current cost of operation . Accordingly,
land, buildings, land and building improvements, and major equipment are carried separately on the
balance sheet of the national sector and of each affected chapter having custody of these fixed assets .
Generally, fixed assets are defined as any item with a useful life of three or more years that costs more
than $2,500. These fixed assets (excluding land) are depreciated monthly on a straight line basis over
their estimated useful lives. The useful lives established as a corporate standard for fixed assets provide
10 years for land improvements and generally 45 years for buildings . For major equipment, the useful
life is generally 3 to 15 years . Fixed assets are recorded at cost, or, if donated, at their fair market value
at time of acquisition .
Title to all real property owned by the organization is vested in "The American National Red Cross," but
the property under the custody of each chapter is carried on its books and annual depreciation is recorded
together with any liabilities against the property. Prior approval by national headquarters is required for
the purchase, sale or major improvement of the property. The financial position and results of operations
of chapters and regional blood services are included in the Consolidated Financial Statements of the
American Red Cross which are audited by KPMG LLP, independent certified public accountants, and by
the U.S . Army Audit Agency . The consolidated financial statements are used as the basis for the
preparation of Form 990 for the organization . In view of the size of the organization and decentralization
of the financial records of the national sector and some one thousand chapters with fixed assets, it is not
feasible to present the detail. called for in the schedules designated in Part II, Line 42, and Part N,
Line 57.
Statement 1
June 30, 2004
53-0196605
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
Statement 2
Part I - Lines 18, 19, 20 and 21
Net assets at June 30, 2003
$ 2,166,816,327
Unrealized gain (loss) on investments
88,018,456
Additional minimum pension liability adjustment (Note 1)
54,103,000
Change in net assets from FY 2004 activities
(see Consolidated Statement of Activities)
Net assets at June 30, 2004
(107,956,425)
$ 2,200,981,358
Note 1 : The provisions of FASB Statement No. 87, Employers' Accounting for Pensions, require
recognition of an additional minimum liability, if the accrued benefit costs for a pension plan are less
than the excess of the accumulated benefit obligation over plan assets . At June 30, 2003, this resulted in
a minimum pension liability adjustment of approximately $54 million, recorded as a non-operating loss
on the consolidated statement of activities. At June 30, 2004, the value of the Plan assets was sufficient
such that no additional pension liability was required, and the effects of the prior year adjustment were
reversed, resulting in a minimum pension liability adjustment of approximately $54 million . This was
recorded as a non-operating gain on the consolidated statement of activities.
Statement 2
American National Red Cross
and Its Constituent Chapters and Branches
IRS Form 990
Statement 2A
Special Events Revenue for FY 2004
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
01019
01192
01208
01216
02012
03008
03060
04244
05023
05052
05120
05132
05180
05264
05276
05280
05310
05314
05324
05332
05344
05348
05376
05378
05380
05388
05468
05503
06144
06166
06204
07038
07040
07114
07115
07124
07152
08004
09004
10024
10029
10048
10060
10061
10091
10180
10188
BIRMINGHAM AREA, AL
MADISON/MARSHALL COUNTY, AL
ALABAMA GULF COAST CHAPTER, AL
ARC OF CENTRAL ALABAMA, AL
ARC OF ALASKA
THE GRAND CANYON CHAPTER, AZ
SOUTHERN ARIZONA, AZ
CENTRAL ARKANSAS, AR
ARCADIA, CA
THREE RIVERS, CA
GLENDALE-CRESCENTA VALLEY, CA
GREATER LONG BEACH, CA
AMERICAN RED CROSS OF GREATER LOS ANGELES, CA
ORANGE COUNTY, CA
PALO ALTO AREA, CA
SAN GABRIEL VALLEY, CA
SONOMA COUNTY, CA
RIO RONDO, CA
RIVERSIDE COUNTY, CA
SACRAMENTO SIERRA, CA
INLAND EMPIRE, CA
SAN DIEGO/IMPERIAL COUNTIES, CA
SANTA BARBARA COUNTY, CA
SANTA CLARA VALLEY, CA
SANTA CRUZ COUNTY, CA
ARC OF SANTA MONICA, CA
AMERICAN RED CROSS OF VENTURA COUNTY, CA
ARC BAY AREA, CA
CENTENNIAL, CO
MILE HIGH, CO
PIKES PEAK, CO
CHARTER OAK CHAPTER OF CONNECTICUT, CT
GREENWICH, CT
SOUTH CENTRAL CONNECTICUT, CT
SE FAIRFIELD COUNTY, CT
STAMFORD, CT
MID-FAIRFIELD COUNTY, CT
ARC OF THE DELMARVA PENINSULA, DE
NATIONAL CAPITAL
BROWARD COUNTY, FL
ARC OF CENTRAL FLORIDA, FL
COLLIER COUNTY, FL
ARC OF GREATER MIAMI & THE KEYS, FL
FLORIDA'S COAST TO COAST, FL
TAMPA BAY, FL
MANATEE COUNTY, FL
MARTIN COUNTY, FL
1 of 4
0
65,035
62,073
84,100
140,863
156,728
316,544
18,984
19,294
16,994
20,338
35,844
0
280,278
85,662
132,202
95,227
82,494
45,154
88,675
131,974
82,894
37,912
0
132,168
19,495
116,629
278,833
30,433
1,197,586
54,668
147,337
855,916
169,347
142,668
164,989
111,415
187,908
384,258
259,124
186,340
69,637
998,125
2,748
259,493
59,943
137,310
0
27,530
18,918
51,167
31,408
46,802
66,222
0
13,403
16,170
2,685
20,324
0
62,299
25,093
65,611
9,159
53,650
0
73,827
48,137
27,072
0
0
84,099
7,370
73,290
96,447
3,123
723,082
13,612
102,784
289,251
27,701
45,514
81,013
74,861
74,750
189,862
163,187
6,660
22,652
253,177
0
112,124
31,283
61,315
0
37,505
43,155
32,933
109,455
109,926
250,322
18,984
5,891
824
17,653
15,520
0
217,979
60,569
66,591
88,068
28,844
45,154
14,848
83,837
55,822
37,912
0
48,069
12,125
43,339
182,386
27,310
474,504
41,056
44,553
566,665
141,646
97,154
83,976
36,554
113,158
194,396
95,937
179,680
46,985
744,948
2,748
147,369
28,660
75,995
Special Events Revenue for FY 2004
10198
10228
10276
11378
12024
13004
13054
13148
13302
13364
13378
14006
14164
15080
15198
15422
16213
16274
17048
17340
18125
18142
18206
19104
20012
21036
21066
21254
21501
22108
22172
22178
22234
22240
22252
22322
23193
23280
25040
25150
25152
25380
27186
27234
29044
30040
30067
30116
30120
30140
30172
30176
NORTHEAST FLORIDA, FL
ARC OF GREATER PALM BEACH AREA, FL
SOUTHWEST FLORIDA, FL
METROPOLITAN ATLANTA, GA
AMERICAN RED CROSS OF SOUTHWEST IDAHO, ID
ADAMS CO, IL
CENTRAL ILLINOIS, IL
FULTON-SCHUYLER, IL
ARC OF GREATER CHICAGO, IL
AMERICAN RED CROSS OF THE QUAD CITIES AREA, IL
ROCK RIVER, IL
ARC OF NORTHEAST INDIANA, IN
ARC OF GREATER INDIANAPOLIS AREA, IN
CENTRAL IOWA, IA
GRANT WOOD AREA, IA
SIOUXLAND AREA, IA
KANSAS CAPITAL AREA, KS
MIDWAY-KANSAS, KS
BLUEGRASS AREA, KY
LOUISVILLE AREA, KY
LOUISIANA CAPITAL AREA, LA
NORTHWEST LOUISIANA, LA
SOUTHEAST LOUISIANA, LA
PORTLAND, ME
CENTRAL MARYLAND, MD
BERKSHIRE COUNTY, MA
ARC OF CENTRAL MASSACHUSETTS, MA
PIONEER VALLEY, MA
ARC OF MASS BAY, MA
GENESEE-LAPEER, MI
ARC OF GREATER KALAMAZOO AREA, MI
ARC OF WEST CENTRAL MICHIGAN, MI
MID-MICHIGAN, MI
MONROE COUNTY, MI
MUSKEGON-OCEANA, MI
SOUTHEASTERN MICHIGAN, MI
ARC, MINNEAPOLIS AREA, MN
ARC OF THE ST PAUL AREA, MN
MIDLAND EMPIRE, MO
GREATER KANSAS CITY, MO
GREATER OZARKS, MO
AMERICAN RED CROSS ST . LOUIS AREA, MO
HEARTLAND, NE
LANCASTER COUNTY, NE
GREATER MANCHESTER, NH
CAMDEN COUNTY, NJ
ARC IN METROPOLITAN NEW JERSEY, NJ
JERSEY COAST, NJ
MONTCLAIR-GLEN RIDGE-NUTLEY, NJ
BERGEN-HUDSON, NJ
TRI-COUNTY, NJ
AMERICAN RED CROSS OF CENTRAL NEW JERSEY, NJ
2 of 4
89,901
2,119,136
33,284
0
191,267
0
25,408
0
227,890
169,992
61,789
44,575
76,010
51,721
46,734
121,061
3,617
0
34,056
240,863
7,128
121,368
360,396
62,195
246,153
95,643
87,633
91,723
336,413
81,290
31,178
2,947
110,300
178,758
155,928
206,424
89,249
137,818
1,524
286,212
117,340
0
49,268
86,279
131,634
132,124
246,651
248,586
96,962
454,186
13,776
455,540
40,934
1,071,647
10,491
0
53,665
0
9,585
0
0
60,457
25,103
15,090
10,445
8,777
10,062
23,739
0
0
2,954
76,813
8,236
41,447
136,817
25,195
97,611
41,027
32,586
26,554
102,332
14,061
34,281
1,194
40,552
104,895
45,703
77,803
0
60,799
0
92,856
40,542
0
21,210
6,544
19,504
50,844
111,146
96,193
39,008
223,178
6,125
192,064
48,967
1,047,489
22,793
0
137,602
0
15,823
0
227,890
109,535
36,686
29,485
65,565
42,944
36,672
97,322
3,617
0
31,102
164,050
(1,106)
79,921
223,579
37,000
148,542
54,616
55,047
65,169
234,081
67,229
(3,103)
1,753
69,748
73,863
110,225
128,621
89,249
77,019
1,524
193,356
76,798
0
28,058
79,735
112,130
81,280
135,505
152,393
57,954
231,008
7,651
263,476
Special Events Revenue for FY 2004
30216
31061
32004
32036
32140
32236
32248
32336
32397
32400
32442
32500
33029
33152
33181
33188
33216
33322
33430
35072
35086
35106
35168
35170
35384
35392
36232
36308
37080
37104
38024
38116
38196
38212
38216
38292
38300
38332
38360
38444
39004
40048
40050
40104
41208
42036
42196
42264
42296
43129
43200
43336
SUMMIT AREA, NJ
MID-RIO GRANDE, NM
ARC OF NORTHEASTERN NEW YORK, NY
SOUTHERN TIER, NY
GREATER BUFFALO, NY
NASSAU COUNTY, NY
NIAGARA FALLS, NY
GREATER ROCHESTER, NY
SUFFOLK COUNTY, NY
ONONDAGA-OSWEGO, NY
WESTCHESTER COUNTY, NY
ARC IN GREATER NEW YORK
ASHEVILLE-MOUNTAIN AREA, NC
CENTRAL NORTH CAROLINA, NC
GREATER CAROLINAS, NC
GREENSBORO, NC
HIGH POINT-THOMASVILLE, NC
NORTHWEST NORTH CAROLINA, NC
TRIANGLE AREA, NC
CINCINNATI AREA, OH
ARC OF GREATER COLUMBUS, OH
DAYTON AREA, OH
GREATER CLEVELAND, OH
GREATER TOLEDO AREA, OH
SUMMIT COUNTY, OH
TRUMBULL COUNTY, OH
THE AMERICAN RED CROSS OF CENTRAL OKLAHOMA, OK
TULSA AREA, OK
OREGON PACIFIC, OR
OREGON TRAIL, OR
BERKS COUNTY, PA
GREATER ERIE COUNTY, PA
AMERICAN RED CROSS OF THE SUSQUEHANNA VALLEY, PA
LEHIGH VALLEY, PA
LOWER BUCKS COUNTY, PA
ALLEGHENY REGION, PA
SOUTHWESTERN PENNSYLVANIA, PA
SCRANTON, PA
SOUTHEASTERN PENNSYLVANIA, PA
YORK COUNTY, PA
RHODE ISLAND, RI
CAROLINA LOWCOUNTRY, SC
ARC OF CENTRAL SOUTH CAROLINA, SC
UPSTATE SOUTH CAROLINA, SC
SIOUX EMPIRE, SD
CHATTANOOGA-HAMILTON COUNTY, TN
KNOXVILLE AREA, TN
MID-SOUTH, TN
NASHVILLE AREA, TN
ARC OF CENTRAL TEXAS, TX
DALLAS AREA, TX
GREATER HOUSTON AREA, TX
3 of 4
229,479
6,941
97,850
131,964
449,967
234,443
85,261
236,739
504
365,116
274,014
190,790
88,184
3,123
209,440
0
104,080
36,901
344,922
121,658
450,624
89,080
1,154,490
82,898
91,442
25,161
184,102
0
88,541
249,259
120,719
29,700
40,476
118,469
164,494
48,631
234,905
131,639
1,502,509
132,640
34,671
100,900
5,823
249,525
62,580
6,172
24,375
6,532
454,013
269,217
326,735
83,744
51,688
0
22,104
69,202
239,647
85,394
22,607
74,254
0
73,217
122,314
55,138
19,582
388
144,863
0
18,638
6,457
164,030
52,638
131,411
30,264
515,721
24,773
16,717
13,740
52,833
0
0
92,465
89,027
11,393
21,583
36,964
58,930
41,787
139,040
36,197
377,432
20,368
0
62,371
0
118,292
8,441
3,457
10,100
4,778
116,827
226,958
166,803
12,256
177,791
6,941
75,746
62,762
210,320
149,049
62,654
162,485
504
291,899
151,700
135,652
68,602
2,735
64,577
0
85,442
30,444
180,892
69,020
319,213
58,816
638,769
58,125
74,725
11,421
131,269
0
88,541
156,794
31,692
18,307
18,893
81,505
105,564
6,844
95,865
95,442
1,125,077
112,272
34,671
38,529
5,823
131,233
54,139
2,715
14,275
1,754
337,186
42,259
159,932
71,488
Special Events Revenue for FY 2004
152
153
43746
154
155
44006
44084
45020
156
157
43812
SAN ANTONIO AREA, TX
CHISHOLM TRAIL CHAPTER, TX
ARC OF NORTHERN UTAH, UT
GREATER SALT LAKE AREA, UT
CENTRAL VT-NH VALLEY, VT
65,414
144,567
26,107
36,488
39,307
108,079
101,702
55,320
31,262
13,888
70,440
41,432
46008
ALEXANDRIA, VA
90,479
717,817
36,858
581,992
53,621
135,825
158
159
46372
46380
GREATER RICHMOND, VA
ROANOKE VALLEY, VA
118,921
91,254
55,693
17,322
63,228
73,932
160
161
46441
46456
47028
1,348,208
34,648
142,220
1,185,441
15,931
162,767
18,717
125,344
38,327
162
163
164
165
166
167
168
169
170
171
172
SOUTHEASTERN VIRGINIA, VA
WINCHESTER & FREDERICK COUNTY, VA
CLARK COUNTY, WA
INLAND NORTHWEST, WA
ARC SERVING KING & KITSAP COUNTIES, WA
47,276
324,137
16,876
8,949
39,388
SNOHOMISH COUNTY, WA
MOUNT RAINIER, WA
130,101
270,466
66,473
97,492
284,749
63,628
172,974
12,043
172,551
11,408
44,906
635
127,645
49110
49162
GREATER MILWAUKEE, WI
LAKELAND, WI
15,670
73,173
20,591
22,097
(4,921)
51,076
54004
56004
HAWAII STATE, HI
PUERTO RICO
Subtotal
;
All other Chapters
$
14,843,265
$
4,807,868
$
10,035,397
Total
$
45,547,942
$
17,262,700
$
28,285,242
47066
47116
47128
47138
48240
49064
OHIO VALLEY, WV
BADGER, WI
4of4
584,870
162,829
30,704,677 $
0
55,878
12,454,832 $
584,870
106,951
18,249,845
June 30, 2004
53-0196605
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
Statement 3
Part u, Line 23 : SPECIFIC ASSISTANCE TO INDIVIDUALS
The amount shown in Part II, Line 23 represents the total of specific assistance of money and property to
individuals and families . These gifts are as follows :
$ 46,700,472
1.
Disaster Relief
2.
Liberty Disaster Relief - Sept 11 Response
32,567,267
3.
International Services
23,081,494
4.
Community Services
13,515,959
5.
Armed Forces Emergency Services
Total Specific Assistance to Individuals
2,568,207
$ 118,433,399
Statement 3
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
Statement 4
PART III - STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Disaster Services
Liberty Disaster Relief - Sept 11 Response
Armed Forces Emergency Services
Community Services
Health and Safety Services
Biomedical Services
International Services
TOTAL
$
238,867,836
52,100,612
60,896,501
135,498,717
216,265,171
2,133,3 82,171
54,962,855
$2,891,973,863
Description of Services Provided
(a) Disaster Services: The organization responded to 96 large-scale disasters in fiscal year 2004,
including floods tornadoes, wind and ice storms, Hurricane Isabel on the east coast, and the
devastating wildfires in southern California. Through its network of several hundred local
chapters in all 50 states, as well as offshore U.S. territories and possessions in the Caribbean and
the Pacific, the Red Cross responded to a total of nearly 68,000 disasters large and small. The
organization provided food, lodging, health services, crisis interventions and community mentalhealth debriefings and/or other related emergency care to persons in need. The services of the
American Red Cross began with safe shelters for evacuees and continued as families mapped and
traveled their road to recovery. The number of trained disaster staff that provided these services
in the National Disaster Services Human Resources System was approximately 24,000 in FY
2004. Chapters throughout the country trained thousands more to respond to disasters within the
boundaries of their own communities .
(b) Liberty Disaster Relief Fund : On September 11, 2001, terrorist attacks on the United States
considerably increased the number and scope of services provided by the American Red Cross to
relief workers, families of victims and others directly impacted by the attacks . Due to the
significant response by the American Red Cross, and to help ensure greater public accountability,
a separate Liberty Disaster Relief Fund was established for the monetary and in-kind
contributions provided to support American Red Cross services to terrorism victims . The
services provided to date have been determined by the immediate and long term needs of those
directly affected . The Liberty Disaster Relief Fund continues to provide long term services such
as financial assistance, mental health and health services, cash management and other specialized
programs .
Statement 4 (continued)
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
(c)
Armed Forces Emergency Services : The organization provides military members, veterans, and
their families with emergency communications, assistance in obtaining financial assistance for
expenses related to emergency travel or personal crisis and other vital services at U.S. military
installations worldwide .
(d)
Community Services : American Red Cross chapters offer community services that help people
lead safer, healthier lives and allow for greater self-reliance . These services include meal
delivery to housebound residents, food pantries, rides to medical appointments, homeless
shelters, transitional housing, caregiver education and support groups, friendly visitors, Lifeline
9, hospital / nursing home volunteers, fuel assistance, latchkey programs and language banks .
(e)
Health and Safety Services : The organization trains people to prevent, prepare for and respond
to emergencies. Courses include first aid, CPR/AED training, HIV/AIDS prevention education,
aquatics and water safety, and caregiving courses such as babysitter's training.
(f)
Biomedical Services : The organization collects, tests, and distributes nearly half of the nation's
blood and blood components and operates 35 regional blood service centers throughout the
country . In fiscal year 2004, the organization collected over 6 million productive units of blood
from over 4 million donors and supplied 2,900 hospitals and other facilities with blood and blood
products for transfusion .
(g)
International Services : The organization works to prevent and relieve the most desperate cases
of human suffering caused by international emergencies or chronic poverty . International
Services helps save lives when people are threatened by epidemics, disasters, armed conflict,
social strife or economic collapse. To assist vulnerable families in developing nations,
International Services staff works with our Red Cross and Red Crescent partner national societies
to build a family's capacity to improve living conditions by such measures as providing food,
ensuring safe drinking water, immunizing children, developing disaster preparedness plans and
helping families gain access to primary health care . Other vital services include reconnecting
families separated by emergencies and educating the American public about international
humanitarian law.
Statement 4
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American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
Statement 6
SCHEDULE A, PART III - LINE 1 : STATEMENT ABOUT ACTIVITIES
The American National Red Cross does not contribute to or participate in election campaigns . It does not
endorse candidates for elective office nor does it publish or distribute information that directly or
indirectly endorses or opposes a candidate .
The American National Red Cross does, from time to time, present written and oral testimony at
legislative hearings, communicate with legislators and their staffs, and issue public statements related to
pending legislation . These activities are generally limited to areas in which it has a recognized expertise
(such as blood banking, public health, disaster mitigation, and non-profit tax exemption).
SCHEDULE A, PART VI-B
LOBBYING ACTIVITIES BY NONELECTING PUBLIC CHARITIES - LINES c d,e,f, , and h.
The American National Red Cross participates in lobbying and other public policy advocacy activities at
the federal and state level (within the limits set by IRS regulations) on issues that are related to the
organization's mission including : biomedical services and research; homeland security, preparedness,
response and disaster mitigation; public health and safety ; emergency communications services to the
armed forces; international services; and the regulation of nonprofit organizations . These activities
include preparing and presenting written and oral testimony at legislative hearings and executive branch
advisory committee meetings ; communicating with policymakers and their staffs at meetings and
briefings ; and issuing public statements related to pending legislation and regulation.
The American National Red Cross does not contribute to or participate in election campaigns . It does not
endorse candidates for elective office, nor does it publish or distribute information that directly or
indirectly endorses or opposes a candidate .
Statement 6
American National Red Cross and
Its Constituent Chapters and Auxiliaries
IRS Form 990
June 30, 2004
53-0196605
Statement 7
SCHEDULE A. PART III - LINES 3 & 4b: DISBURSEMENT IN FURTHERANCE
OF CHARITABLE PROGRAMS AND GRANTS
Pursuant to the Congressional Charter of the American National Red Cross (36 U.S.C. 3 Fifth), the
organization carries out a system of national and international relief to mitigate or prevent suffering
caused by disasters . Disaster victims qualify to receive such assistance based on either obvious
circumstances, such as apparent need for food, clothing or shelter, or a casework process in which the
nature and extent of the disaster-caused needs for Red Cross aid are determined in the light of other
available resources and the ability of the victims to assist themselves .
Contributions to other organizations consist primarily of those made to the International Committee of
the Red Cross, the Federation of Red Cross and Red Crescent Societies and national Red Cross societies
of other countries . Contributions may be made for a variety of purposes, including regular financial
support and disaster relief assistance. The American Red Cross has ongoing relationships with all such
Red Cross organizations which are governed by humanitarian principles and qualify for such assistance .
Pursuant to its Congressional Charter (36 U.S.C. 3 Fourth), the American National Red Cross also acts in
matters of voluntary relief and in accord with the military authorities to provide communications and
welfare assistance to members of the Armed Forces of the United States, their families and veterans .
Assistance to this group is determined generally on the basis of their military, veteran or dependent status
and the particular needs related thereto as revealed through casework and similar means.
No member of, or contributor to, the Red Cross is eligible for any of the above types of assistance not
available to persons who are not members of, or contributors to, the Red Cross, and no account is taken
or records maintained as to whether recipients are members of, or contributors to, the Red Cross or
related to corporate directors, officers, employees or donors .
Employees of the American National Red Cross are eligible for limited financial assistance to further
their educations; and its employees serving overseas are eligible for limited financial assistance to help
defray the costs of schooling of their dependents at overseas locations . Former employees who retire
with low benefits may be assisted from a special fund. In all instances, eligibility for the assistance is
based on the needs of the individual employee concerned .
Statement 7
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
Statement 8
SCHEDULE A. PART IV-A, LINE 21 : VALUE OF SERVICES OR FACILITIES
FURNISHED TO YOU BY A GOVERNMENT UNIT WITHOUT CHARGE
The Department of Defense provides logistical support for American Red Cross' Services to Armed
Forces Program pursuant to 10 U. S. C. 2602, but no objective basis is available to measure the value of
such donations .
Statement 8
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
Statement 9
Schedule A, Part IV-A, Line 22 : Other Income
(a)
2002
Fiscal year beginning in:
Miscellaneous Income (Note 1)
Total Other Income
(b)
2001
20,731,837
27,168,897
$
27,168,897
(c)
2000
$
20,731,837
23,385,791
$
23,385,791
(e)
Total
(d)
1999
37,971,164
$
37,971,164
109,257,689
$
109,257,689
Note 1 : Primarily reimbursements of prior year's expenses, inventory adjustments, trade discounts,
miscellaneous credits, and proceeds from salvage materials.
Statement 9
American National Red Cross and Its Constituent Chapters and Branches
June 30, 2004
IRS Form 990
53-0196605
Statement 10
List of Officers, Directors, Trustees, end Key Employees
Note : All compensation and benefits for the individuals listed below were paid using unrestricted general operating income of the American Red Cross. No funds
related to the September 11, 2001, attacks or disaster relief were used to pay these expenses.
(A) Name and address
(H) Title and average hours per week devoted to position
(C) Compensation
(ifnot paid, enter -0-)
David T McLaughlin
Chairman
2025 8 St, NW, Washington, DC 20006
Less than 25 hours per week
Marsha Bums
2025 E St, NW, Washington, DC 20006
President and CEO
Mary Elceno
2025 E St, NW, Washington, DC 20006
General Counsel and Corporate Secretary
Mary H DeKuyper
2025 ESt, NW, Washington, DC 20006
National Char of Volmteers
60 hours per week
Remash Thadani
Exec VP & CEO, Biomedical Services
2025 E St, NW, Washington, DC 20006
60 hours per weed
(D) Contributions to
employee benefit plans &
(E) Expense
account and other
deferred compensation
allowances
450,008
18,591
-
290,004
6,399
-
-
-
204,351
1,866
60 hours per week
60 hours per week
For the period 7/1/03 - S/27/O7
Severance
260,791
92,310
2,777
36,353
148,172
14,887
5,914
Severance
168,873
22,879
Terry SwJia
2025 E St, NW, Washington, DC 20006
Exec VP, Disaster Services
240,006
20,125
1,264
Alan MeCurry
ChiefOperetmg Officer
335,620
20,998
-
2023 E St, NW, Washington, DC 20006
60 hours per week
Robert P MeDondd
ChiefFmancialOfficer
315,016
16,778
38,787
2025 E St, NW, Washington, DC 20006
60 hours per week
$38,157 relocation cons included in Column E
Gina F Adams
2025 E St, NW, Washington, DC 20006
Board Member
Less then 25 hours per week
-
-
-
Chris Allen
2025 E St . NW, Washington, DC 20006
Board Member
-
-
-
Richard Lee Arnutege
2025 E St, NW, Washington, DC 20006
Baud Member
Less then 25 hours per week
-
-
Senford A Beldm
Board Member
Less than 25 hours per week
-
-
John L Brexton
Baud Member
Less than 25 hours per week
-
-
2025 H St, NW, Washington, DC 20006
lobe Burger
Board Member
-
-
2025 E St , NW, Washington, DC 20006
Less than 25 hours per week
Anna Escobedo Cabs!
Baud Member
-
-
2025 E St, NW, Washington, DC 20006
Less than 25 hours par week
Steven E Can
Board Member
-
-
2025 ESt , NW, Washington, DC 20006
Less than 25 hours per week
Nrta 7 Clyde
2025 ESt, NW, Washington, DC 20006
Board Member
-
-
Douglas H Dittnck
Baud Member
Less than 25 hours per week
-
-
John F McGwre
Exec VP & CEO, Biomedical Services
2025 ESt, NW, Washington, DC 20006
60 hours per week
For the period 3122104 - 6/70104
$36,283 relocation costs included m Column E
Jones Krueger
2025 E St, NN', Washington, DC 20006
Exec VP, Chapter Services Network
60 hours per week
For the period 7/1/03 - 11/14/03
2025 E St, NW, Washington, DC 20006
2025 ESt , NW, Washington, DC 20006
60 hours per week
Less than 25 hours per week
Less dean 25 hours per week
-
-
Donald L Evens
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Bill J Gagliano
2025 E St, NW, Washington, DC 20006
Board Member
Less then 23 hour per week
Lee A Goldstem
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Karen K Goodman
2025 E St . NW, Washington, DC 20006
Board Member
William F Gnnnan, Jr
Board Member
2025 E St . NW, Washington, DC 20006
Less than 25 hours per week
Carol Mn Heake
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Less than 25 hours per week
Susan H HatsmJler
Board Member
2025 E St . NW, Washington, DC 20006
Less than 23 hours per week
Michael W Hawkms
Hoard Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Edward A Heidt, Jr
Hoard Member
2025 BSt, NW, Washington, DC 20006
Less than 25 hours per week
r
Joyce N Hoffmen
Board Member
2025 E St, NW, Washington, DC 20006
Lass than 25 hours per week
Judith Rchards Hope
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per weed
Jon M Huntsman
Board Member
2025 F St, NW, Washington, DC 20006
Less than 25 hours per week
Mn F Kaplen
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Gregory A Kozmatsky
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours par weak
R Bruce Lagoon
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hour par week
Sherry Lansing
Hoard Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
William V Lems, Jr
Board Member
2025 E St, NW. Washington, DC 20006
Less than 25 hours per week
Rex K Under
2025 E St . NW, Washington, DC 20006
Board Member
Less than 25 hours per week
William Lucy
2025 E St, NW, Washington, DC 20006
Hoard Member
Less than 25 hours per week
Elune M Lyedy
2025 E St , NW, Washington, DC 20006
Board Member
Allen W Mathies
2025 E St, NW, Washington, DC 20006
Board Member
William F McConnell
Board Member
2025 ESt, NW, Washington, DC 20006
Less than 25 hours per weal
Richard B Myers
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Less than 25 hours pet week
Less than 25 hours per week
Richard M Njemiec
Board Member
2025 ESt , NW, Washington, DC 20006
Less than 25 hours per week
Ross H Ogden
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Rodenck R Page
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Theodore R Pamsh
2023 E St, NW, Washington, DC 20006
Board Member
Pat M Powers
Board Member
2025 E St, NW, Washington, DC 20006
Less than 25 hours per week
Anthony 1 Pnnapi
2025 E St . NW, Washington, DC 20006
Board Member
Less then 25 hours per week
Thomas J Ridge
Board Member
2025 E $t, NW, Washington, DC 20006
Glenn A Sieber
2025 E St . NW, Washington, DC 20006
Robes L Smolen
2023 E St, NW, Washington, DC 20006
Less then 25 hours per week
Less than 25 hours per week
Board Member
Less then 25 hours per week
Board Member
Less then 25 hours per week
Brian Skotko
2025 E St, NW, Washington, DC 20006
Board Member
E Frsncme Stokes
Board Member
2025 E St, NW, Washington, DC 20006
Las than 25 hours per week
Less than 25 hours per week
Tommy G Thompson
2025 E St, NW, Washington, DC 20006
Board Member
ChnsnneK Wilkimon
2025 E St, NW, Washington, DC 20006
Board Member
Maunce W Worth
2025 E St, NW, Washington, DC 20006
Board Member
Total
Less then 25 hours per week
Less then 25 hours per week
Less than 25 hours per week
2,505,151
125,300
82,318
June 30, 2004
53-0196605
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
Statement 11
I certify that the changes in the bylaws adopted during the fiscal year ended June 30, 2004, and attached
hereto, are complete and accurate copies of the original documents .
Signatur of
fficer
Date
Title
C(!Z
,~G~~~ S
LCIT ETA
Statement 11
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Section 7
Section 8
Section 9
Section 10
Section 11
Section 12
Section 13
Section 14
Statutory Authority; Certain Definitions
Board of Governors
Committees of the Board of Governors
Means for Board and Committee Actions; Expenses
Honorary Officers
Officers
National Convention
Membership
Chartered Units
Funds
Indemnification
Dissolution
Amendments
Subordinate Written Authority
-----------------------------------------------
--------------
-
October 2004
Reflecting Board Actions through Octot?cr 15 2004
-
-
-
--------------------------------------------------------------- - ----- . --- { oeietea: May
--
-
-
-
-
--
-- -
-
- t Deleted: May 21
Page 1
Bylaws of the American National Red Cross
BYLAWS OF THE
AMERICAN NATIONAL RED CROSS
1.1
Subject to Charter. These Bylaws have been adopted as the Bylaws of The
American National Red Cross pursuant to an Act of Congress approved January
5, 1905, as amended (§300101 (1999), et seq.), (which Act as so amended is
hereinafter referred to as the "Congressional Charter") and are in all respects
subject to the provisions of the Congressional Charter.
1.2
Chapters.
(a) The term "Chapter" as used in the Congressional Charter shall mean
and refer to the Chartered Units of The American National Red Cross (the
"Corporation") .
(b) The term "Chapter" as used herein means and refers to the Chartered
Units designated as Chapters by the Corporation .
1 .3
Chartered Units. The term "Chartered Units" of the Corporation shall mean
Chapters and Blood Services Regions chartered by the Board of Governors.
1 .4
Payment of "Amount Specified " The phrase "payment of the amount specified"
as used in Section 300103 of the Congressional Charter shall mean such sums of
money, or equivalent in money's worth, as specified in Section 8.1(a) of these
Bylaws .
1 .5
Corporate Regulations The term "Corporate Regulations" shall mean the
Congressional Charter, the Bylaws, the Board of Governors Policy Manual, all
resolutions of the Board of Governors, all Chairman's Letters, and all other
regulations, directives, rules, and policies of the President and CEO, or his or her
designees. Each such source of corporate authority occupies the order of
precedence in which it appears in the preceding sentence . Each prevails over
inconsistent provisions of subordinate sources.
Deleted : May
Deleted- May 21-_
October 2004
Reflecting Board Actions throughOctober 15 2004
Page 2
Bylaws of the American National Red Cross
2.1
Powers; Composition. The governing body of The American National Red Cross
in which all powers of government, direction, and management of the Corporation
shall be lodged shall consist of a Board of Governors numbering 50 persons, each
of whom shall serve without compensation for services as such .
2.2
Appointment and Election . Governors shall be appointed or elected in the
following manner :
(a) Eight Governors shall be appointed by the President of the United
States, one of whom, the Chairman, shall be designated by the President to act as
the principal officer of the Corporation;
(b) 30 Governors shall be elected by the Chartered Units at the National
Convention ; and
(c) 12 Governors shall be elected by the Board of Governors as membersat-large .
----------------------
2.3
Term of Office . The terms of office of all Governors shall be three years, except
that the office of any Governor appointed by the President of the United States
(other than the Chairman of the Corporation) shall become vacant if and when
such Governor shall leave the official position held at the time of his/her
appointment as Governor, or if such Governor shall die or resign, prior to the date
on which his/her term as Governor would expire. Any Governor who shall have
been elected by the Chartered Units, or who shall have been elected by the Board
of Governors as a member-at-large, and who shall have served two full
consecutive terms of three years each shall be ineligible for reelection for at least
two years. Any Governor who shall have been elected by the Chartered Units, or
who shall have been elected by the Board of Governors as a member-at-large, to a
vacant term within the first year of such term and who shall have served an
immediately succeeding full term of three years shall be ineligible for reelection
for at least two years.
2.4
Governors Appointed by the President. The terms of office of the Governors
appointed by the President of the United States shall commence upon the
adjournment of the National Convention in the year of their appointment .
2.5
Governors Elected by Chartered Units. Of the 30 Governors elected by
the voting delegates, one third shall be elected at each National Convention . The
terms of office of the ten Governors so elected shall commence upon the
adjournment of the National Convention at which they shall have been elected.
------------------. ------------------------- -2.6 --------------------------------------------Governors Elected as_Members-a_t-Large
_ 9f the l2 Governors elected by_fhe . ...
Board of Governors as members-at-large, one third shall be elected each year at
October 2004
Reflecting Board Actions through October 15, 2004
Page 3
Bylaws of the American National Red Cross
_ - -
Deleted: May
tDeleted* May 21
---------------- . .~_.J
the annual meeting of the Board of Governors held at the National Convention .
The terms of office of the four Governors so elected shall commence upon the
adjournment of such National Convention .
2.7
VacanciesPresidential Appointees. Any vacancy that may occur by death,
resignation, retirement from the official position held at the time of appointment,
or otherwise, among the Governors appointed by the President of the United
States, shall be filled by appointment by the President of the United States as soon
as may be after such vacancy shall have occurred .
2.8
Vacancies-Governors Elected by Chartered Units. Any vacancy that may
occur by death, resignation, or otherwise, among the Governors elected by the
Chartered Units, shall be temporarily filled by election by the Executive
Committee of the Governors as soon as may be after such vacancy shall have
occurred, any such elected person to serve until the next ensuing National
Convention, at which a successor shall be elected by the Chartered Units to fill
such vacancy for the remainder, if any, of the unexpired term .
2 .9
Vacancies-Members-at-Large. Any vacancy that may occur by death,
resignation, or otherwise, among the Governors elected by the Board of
Governors as members-at-large, shall be temporarily filled by election by the
Executive Committee of the Board of Governors as soon as may be after such
vacancy shall have occurred, any such person to serve until the annual meeting of
the Board of Governors held at the next National Convention, at which meeting a
successor shall be elected by the Board of Governors to fill such vacancy for the
remainder, if any, of the unexpired term .
2.10
Termination of Governor's Term. The Board may remove any member-at-large
or charter unit elected Governor for conduct deemed detrimental to the Board of
Governors of the American Red Cross. The Chairman shall raise with the
President of the United States any conflicts with Governors appointed by the
President which the Chairman feels are detrimental to the Board of Governors or
the American Red Cross.
2.11
[Reserved]
2 .12
Annual Meeting. The annual meeting of the Board of Governors shall be held
each year during the National Convention . The purposes of such annual meeting
shall include the election of four at-large Governors, each for a term of three
years, and such other Governors as may be required pursuant to Section 2.9, the
organization of the Board of Governors, the appointment of committees and
committee officers, and the election of officers of the Corporation, for the ensuing
year. In the event the annual meeting is held prior to the Closing Business
Session of the Convention, organizational decisions affecting Governor-nominees
shall be conditional upon their election as Governors.
--------------------------------------------------------------------------- - ---- ---- --- - - ---- - ------ -- --- --------- - --- ----- - ------ -
------------------------------October 2004
Reflecting Board Actions through ()ct9ber 15 . 2004
Page 4
Bylaws of the American National Red Cross
Deleted: May
Deleted: May 21
2.13
Other Regular Meetings . At least two regular meetings of the Board of
Governors other than the annual meeting provided for in Sections 2.12 of these
Bylaws shall be held in each year at such times as the Board of Governors may
from time to time determine .
2.14
Special Meetings . Upon the direction of the Chairman or the written direction of
any 15 Governors, the Secretary shall call a special meeting of the Board of
Governors.
2.15
Place ojMeetings. Except in the case of the annual meeting provided for in
Section 2 .12, regular and special meetings of the Board of Governors shall be
held in Washington, D.C ., unless otherwise determined by the Board of
Governors.
2.16
Notice ojMeetings . Notice of regular meetings shall be given to each Governor
at least 10 days before such meeting. Notice of special meetings shall be given to
each Governor at least ten days before such meeting, whenever practicable, but in
no event fewer than five days prior to the meeting. Notices of all meetings shall
outline, as far as practicable, the matters to be considered. Notices shall be given
by written or electronic means.
2.17
Quorum; Action . Twenty Governors shall constitute a quorum for any regular or
special meeting. The vote of a majority of the Board of Governors present at the
meeting at which a quorum is present and entitled to vote on the issue shall be
required for the adoption of any matter voted on by the Governors, except as
specifically provided in these Bylaws and except that in the absence of a quorum a
lesser number may adjourn the meeting from time to time .
2.18
Waiver ofNotice . Whenever any notice is required to be given, a waiver thereof
in writing signed by the Governor entitled to said notice, whether before or after
the fact, shall be deemed equivalent thereto. Attendance of a Governor at any
meeting shall be deemed to be waiver of notice except where attendance is for the
express purpose of objecting to the transaction of any business because the
meeting is not properly called or convened .
2.19
Periodic Assessment of Corporate Performance. At least once every two years,
the Board of Governors will assess the Corporation's performance and
effectiveness and ensure that actions are taken to achieve the Corporation's
Mission and accomplish its Strategic Plan .
3.1
The Executive Committee.
3.1.1
October 2004
------------------- . - -~
, Purpose and Authority. The Executive Committee shall have_and may_exercise
all the powers of the Board of Governors when the Board of Governors is not in
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session and all such other powers and authority as may be delegated to it by the
Board of Governors from time to time. The Executive Committee shall also
recommend candidates for election as
(a) members-at-large of the Board of Governors,
(b) vice-chairmen of the Board of Governors, and
(c) such other officers and committee members as are required to be
elected or appointed by the Board of Governors, provided that when such
recommendations are presented to the Board of Governors, members of the Board
of Governors may recommend additional candidates for such positions.
All actions taken by the Executive Committee shall be promptly reported,
together with a copy of the minutes reflecting such actions, to the full Board of
Governors.
3.1 .2
Composition . The Board of Governors shall elect from its own members an
Executive Committee consisting of not fewer than 11 members, of whom one
shall be the Chairman of the Corporation. The Chairman of the Corporation shall
be the Chairman of the Executive Committee. The Chairs of the Audit,
Biomedical Services, Disaster and Chapter Services, Finance, Governance,
International Services and Public Support Committees shall be standing members
of the Executive Committee.
3.1 .3
Election . The Executive Committee shall be elected by the Board of Governors
each year at the annual meeting of the Board of Governors held pursuant to
Section 2.12 of the Bylaws .
3.1 .4
Meetings. The Executive Committee shall hold regular meetings at
such times as it shall determine. Upon the direction of the Chairman or the
written direction of any four members of the Executive Committee, the Secretary
of the Corporation shall call a special meeting of the Executive Committee.
Notice of all meetings of the Executive Committee shall be given to each member
at least three days prior to such meeting and shall outline, as far as practicable, the
matters to be considered . Notice shall be given by written or electronic means.
3.1 .5
Place of Meetings . Regular and special meetings of the Executive Committee
shall be held in Washington, D.C., unless otherwise determined by the Executive
Committee.
3.1 .6
Quorum . Six members of the Executive Committee shall constitute a quorum,
but in the absence of a quorum, a lesser number may adjourn the meeting from
time to time .
c .---- ---------------- -- ---------- -,------- -----
~.2
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3.2.1
Purpose and Authority. The Biomedical Services Committee is authorized to
consider matters related to Biomedical Services, including blood, plasma, and
tissue services .
Unless otherwise authorized by the Board of Governors, the Committee shall have
no power to act on behalf of the Board of Governors but shall present its
recommendations, together with the advice from the Finance Committee if a
recommendation involves the expenditure of funds beyond those already
appropriated or available, to the Board for action . The Committee shall have and
may exercise such other authority as may be delegated to it by the Board of
Governors from time to time .
3.2 .2
Composition. The Biomedical Services Committee shall consist of not fewer than
ten nor more than fourteen members, a majority of whom must be Governors and
who shall be elected for terms of one year each. Non-Governor members shall be
nominated for their pharmaceutical, regulatory or related expertise. Biomedical
Services Committee members may not have direct business relationships with
American Red Cross Biomedical Services and may not also serve on the Disaster
and Chapter Services Committee. Any non-Governor member who shall have
served six full consecutive terms shall be ineligible for reelection for at least one
year.
3.2 .3
Quorum . A majority of the members of the Biomedical Services Committee,
which majority must include a majority of its Governor members, shall constitute
a quorum, but in the absence of a quorum a lesser number may adjourn the
meeting from time to time . Any action of the Committee shall be subject to the
approving vote of a majority of the members in attendance.
3.3
Finance Committee.
3.3 .1
Purpose and Authority. The Finance Committee is authorized to consider
matters related to fiscal, financial, and budgetary affairs of the Corporation . The
Finance Committee shall receive and review recommendations from the standing
committees of the Board in all instances where the adoption of such
recommendations by the Board would involve expenditures or the provision of
funds beyond those already appropriated or made available by Board of
Governors action . Unless otherwise authorized by the Board of Governors, the
Committee shall have no power to act on behalf of the Board, but shall present its
recommendations to the Board of Governors for action . The Committee shall
have and may exercise such other authority as may be delegated to it by the Board
of Governors from time to time.
3.3 .2
Composition . The Finance Committee shall consist of not fewer than five nor
more than seven Governors.
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-3 :A-------T--- Disaster and chapter Servlces-Coiitmitfee.
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3.4 .1
Purpose and Authority. The Disaster and Chapter Services Committee is
authorized to consider matters related to :
(a) those Red Cross programs and services provided to the public by national
headquarters and by chapters and armed forces emergency service stations
including disaster, armed forces, health and safety and community services
(collectively refereed to as "Chapter and Disaster Services") unless such a
program or service is under the authority of another Committee of the Board
of Governors;
(b) oversight of volunteer, youth and nursing and other programmatic personnel
matters;
(c) the establishment, requirements and governance of Chapters, including, but
not limited to, the compliance of Chapters with Board ofGovernors Policy
Manuu and other Corporate Regulations - and
---- the - conduct
---- --- of inquiries and
hearings pursuant to Article 9 of the Bylaws ;
. .--- rDeleted : ies
(d) the optimum configuration of Chapters to best utilize American Red Cross
resources;
(e) the alignment of Chapter jurisdictions;
(f) the relationships among and between Chapters ; and
(g) the relationships between a Chapter and any Unit.
The Committee shall function through the use of formal Subcommittees focused
on Disaster Services, to oversee disaster preparedness and relief, and Chapter
Services, to oversee product and service development and delivery and field unit
compliance and accountability.
Unless otherwise authorized by the Board of Governors, the Committee shall have
no power to act on behalf of the Board of Governors, but shall present its
recommendations, together with advice from the Finance Committee if a
recommendation involves the expenditure of funds beyond those already
appropriated or available, to the Board of Governors for action . The Committee
shall have and may exercise such other authority as may be delegated to it by the
Board of Governors from time to time .
3.4 .2
Composition . The Disaster and Chapter Services Committee shall be composed
of not less than ten nor more than 20 Governors who may not also serve on the
Biomedical Services Committee.
3.5
Audit Committee.
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~ Purpose and Authority. The Audit Committee is authorized to consider matters
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related to
(a) the financial statements of the Corporation and other official
financial information provided to the public,
(b) the systems of internal controls and the audit process, and
(c) evaluating the risk profile of the Corporation .
The Audit Committee shall have such other authority and perform such other
duties as may be delegated to it by the Board of Governors in a Function
Statement or by other means. Unless otherwise authorized by the Board of
Governors, the Audit Committee shall have no power to act on behalf of the
Board, but shall present its recommendations to the Board of Governors for
action .
3 .5 .2
3.6
Composition . The Audit Committee shall consist of not fewer than five nor more
than seven Governors and shall not include the Chairman of the Corporation or
Governors who are also members of the Finance or Governance Committees.
Public Support Committee.
3.6 .1
Purpose and Authority. The Public Support Committee is authorized to consider
policy matters related to public relations and public support of the Corporation,
including questions related to fund-raising and relationships with federated fundraising groups, unions, businesses, foundations, government, and other
organizations that affect the financial and volunteer support of The American
National Red Cross. Unless otherwise authorized by the Board of Governors, the
Committee shall have no power to act on behalf of the Board of Governors, but
shall present its recommendations, together with advice from the Finance
Committee if a recommendation involves the expenditure of funds beyond those
already appropriated or available, to the Board of Governors for action. The
Committee shall have and may exercise such other authority as may be delegated
to it by the Board of Governors from time to time .
3.6 .2
Composition . The Public Support Committee shall consist of not fewer than ten
nor more than 14 Governors.
3.7
International Services Committees
3.7 .1
Purpose and Authority. The International Services Committee is authorized to
consider policy matters related to the International Services of the Corporation,
and to study and evaluate existing or proposed international services of the
Corporation . Unless otherwise authorized by the Board of Governors, the
Committee shall have no power to act on behalf of the Board of Governors, but
------- ------------ - ~-shall-present;ifs-recominendatioris, togefher-wiiti advice-fcom~t}ieFinance~-------Committee if a recommendation involves the expenditure of funds beyond those
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already appropriated or available, to the Board of Governors for action . The
Committee shall have and may exercise such other authority as may be delegated
to it by the Board of Governors from time to time .
3.7 .2
Composition . The International Services Committee shall consist of not fewer
than six nor more than eight Governors.
3.8
3.8.1
Governance Committee.
Purpose and Authority. The Governance Committee is authorized to :
(a) assess at least annually the effectiveness of the Board of Governors, as
a whole, and of individual members of the Board in governing the
organization ;
(b) establish the skills and experience to be sought in new Governor
members, communicate these criteria to the Committee on
Nominations and assist in recruiting new members to the Board of
Governors;
(c) work with the Committee on Nominations in assessing selected
candidates for election at the Convention ;
(d) assess candidates proposed by the Chairman and the President and
Chief Executive Officer for election as at-large members of the Board
of Governors;
(e) provide orientation, training and mentoring to Board members, as
appropriate ;
(f) recommend, in consultation with the Chairman, to the Executive
Committee, the slate of leadership positions, Committee and liaison
assignments to be filled for the coming fiscal year and, in doing so, to
exercise its discretion to waive any or all of the composition
requirements set forth in the Bylaws as are applicable to any
Committee (other than the Governance Committee) and liaison
assignments as the Governance Committee may deem necessary;
(g) conduct in concert with the Chairman, an annual review of the
President and Chief Executive Officer and discuss the review with the
Executive Committee and Board of Governors;
-------
(h) review in concert with the Chairman and recommend for approval by
the Executive Committee the compensation of the President and Chief
---------------------------------------------Executive Officer; set and approve compensation for senior
I October 2004
,. .
-- -rid--~-- .% zecutives ;incluiiing~tliose who-report- directly
fo_the FresTdeni-a
--
Chief Executive Officer and such other executives as the Governance
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------------------
Committee may determine to be appropriate in carrying out their
obligations pursuant to Section 4958 of the Internal Revenue Code ;
and set and approve all executive-level benefit programs, incentive
compensation programs ; separation pay programs, and other
employment related contractual arrangements . All actions taken by
the Committee will be promptly reported to the Executive Committee
and the Board of Governors; and
(i) provide oversight and assessment of the relationship between the
Board of Governors and the President and Chief Executive Officer and
other members of senior level management.
3.8 .2
Composition . The Governance Committee shall be composed of not fewer than
five nor more than seven members who may not also serve on the Finance or
Audit Committees .
3.9
Other Standing or Special Committees . The Board of Governors shall have the
power to constitute other standing or special committees .
3.10
Certain Rules Applicable to All Board of Governors Committees .
3.10.1
Election . The members of each standing and special committee shall be elected
by the Board of Governors at the Annual Meeting of the Board of Governors held
pursuant to Section 2.12 of these Bylaws. The Board of Governors, upon
recommendation of the Executive Committee, shall elect from each committee's
membership the chairman and any vice-chairmen of such committee.
3.10.2
Meetings . Committees shall hold regular meetings at such time as the
Committee Chair shall determine and may call a special meeting of the committee
from time to time .
3.10.3
Quorum; Action. Unless otherwise specified in these Bylaws or by the Board of
Governors, a majority of the members of standing or special committees shall
constitute a quorum . A majority vote of the committee members who are present
at a meeting at which a quorum is present and who are entitled to vote on an issue
is required for any action taken, unless otherwise provided in the Bylaws and
except that in the absence of a quorum a lesser number may adjourn the meeting
from time to time.
3.10.4
Rules. Each committee shall have the power to adopt rules for the conduct of its
business with respect to matters not provided for in the Congressional Charter,
these Bylaws, or any rules adopted by the Board of Governors.
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------------------------
October Zooa
4.1
National Emergency. A national emergency exists for purposes of this Section
when a catastrophic event, such as an attack on the United States, a nuclear or
atomic disaster, or a severe natural or man-made disaster, requires immediate
action of the Executive Committee or the Board of Governors.
4.2
Emergency Meetings. In the event of a national emergency and upon the
direction of the Chairman or the written or electronic request of three Executive
Committee members, the Secretary shall call an emergency meeting of the
Executive Committee. In the event of a national emergency and upon the
direction of the Chairman or the written or electronic request of five Governors,
the Secretary shall call an emergency meeting of the Board of Governors.
Emergency meetings may be held at such time and place or manner as the
Chairman may prescribe.
4.3
Notice ofEmergency Meetings. Notice of an emergency Executive Committee
or Board of Governors meeting shall be given to each Executive Committee
member or Governor, respectively, at least 24 hours before such meeting. Notice
shall be given by written or electronic means, and, will include as far as
practicable, an outline of the matters to be considered .
4.4
Quorum. Six Executive Committee members shall constitute a quorum of the
Executive Committee. Fifteen Governors shall constitute a quorum for any
emergency Board of Governors meeting.
4.5
Action by Meeting. The Board of Governors and any committee appointed by or
under the authority of the Board of Governors may, within the discretion of its
chairman, exercise any power, authority, or function vested in it either at a duly
called meeting at which a quorum of its members is present or, upon due notice to
its members, by the votes of a quorum thereof cast by written or electronic means.
Without limiting the generality of the foregoing, regular and special meetings may
be held in person or by telephone conference or similar electronic equipment
whereby all persons participating in the meeting can hear each other.
Participation in a meeting in this manner shall constitute presence in person at the
meeting and shall entitle the member to vote. Written reports of actions taken by
any such means shall be promptly given to all members of the Board of
Governors or committee in question .
4.6
Action by Consent. The Board of Governors and any committee appointed by or
under the authority of the Board of Governors may, within the discretion of its
chairman, take action by unanimous written consent of its members, setting forth
the action so taken and signed (in one instrument or in counterparts) by all of such
members . The consents shall have the same force and effect as the unanimous
vote of the Board or such committee at a meeting duly called and held .
4:7
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--- - - "- - ---, Proxies;
:R----------ntives
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.__Votingbyproxy_
{Deleted: May 21
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Bylaws of the American National Red Cross
shall not be allowed at any meeting of the Board of Governors or any committee.
The preceding sentence notwithstanding, with the exception of the Chairman of
the Corporation, a Governor appointed by the President may send a representative
to any meeting of the Board or its committees who shall be entitled to participate
in such meetings, but not vote, on behalf of the Governor so represented . NonGovernor members of the Biomedical Services Committee shall have the right to
vote on all issues coming before that Committee.
4.8
Expenses . Expenses of the Governors in attending all meetings of the Board of
Governors, and of the members of Board committees in attending such committee
meetings, including travel expenses to and from the place of such meetings, shall
be paid by the Corporation .
5.1
Honorary Chairman . The President of the United States shall, upon acceptance,
be the Honorary Chairman of The American National Red Cross.
5.2
Honorary General Counsel. The Attorney General of the United States shall,
upon acceptance, be the Honorary General Counsel of The American National
Red Cross.
5.3
Honorary Treasurer. The Secretary of the Treasury of the United States shall,
upon acceptance, be the Honorary Treasurer of The American National Red
Cross.
6.1
Chairman .
(a) The Chairman of The American National Red Cross shall be
appointed by the President of the United States .
(b) In the event of a vacancy or anticipated vacancy in the office of the
Chairman of the Corporation, including as a result of the expiration of the
incumbent's term, there shall be appointed a subcommittee of not fewer than three
members of the Executive Committee to consider candidates for the successor.
The incumbent Chairman, or upon his/her absence or request the most senior vice
chairman, shall be the chairman of the subcommittee . The subcommittee shall, if
practicable, submit its recommendation to the Executive Committee at least six
months prior to the scheduled expiration of the incumbent's term . The
recommendation of the Executive Committee for the appointment of the
Chairman of the Corporation_ shall _be submitted to the President of the United
. States.
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(c) The Chairman shall be the representative of the Corporation in its
relations with public and private agencies and the public at large. The Chairman
shall be responsible for communicating to the President and Chief Executive
Officer of the Corporation the policies and programs adopted or approved by the
Board of Governors and for reporting to the Board of Governors the conduct and
management of the affairs of the entire organization. The Chairman shall serve as
chairman of the Board of Governors and shall also preside over the Executive
Committee. The Chairman shall be a member, ex-officio, of all other committees
appointed by the Board of Governors, except the Audit Committee. The term of
office of the Chairman shall be three years and shall be coterminous with his or
her term of office as Governor pursuant to appointment by the President of the
United States .
October 2004
6.2
Vice Chairmen of the Board. The Board of Governors may elect one or more
vice chairmen, and if more than one is appointed, shall establish the seniority of
such appointees and may charge each Vice Chairman with a specific area of
responsibility . In the absence of the Chairman, the most senior vice chairman
shall exercise the functions of the Chairman, and shall preside over the Board of
Governors and the Executive Committee.
6.3
President and Chief Executive Officer ("CEO'). The President and CEO of the
Corporation shall be nominated by the Chairman and shall be elected by the
Board of Governors. The President and CEO shall be the chief executive officer
of the Corporation and shall be responsible for carrying into effect the policies
and programs adopted or approved by the Board of Governors.
6.4
General Counsel. The President and CEO, with the approval of the Board of
Governors, shall appoint a General Counsel. The General Counsel shall advise
the Corporation upon such legal matters as may be referred by the President and
CEO, the Chairman, the Board of Governors, or by the officers of the
Corporation .
6.5
Chief Financial Officer. The President and CEO, with approval of the Board of
Governors, shall appoint a Chief Financial Officer who shall have care and
custody of all the funds of the Corporation, except such as are, under the
regulations of the Board of Governors, retained in the custody of Chapters. The
Chief Financial Officer shall keep the books of accounts open at all reasonable
times for inspection of members, and shall propose the investment of funds of the
Corporation in such manner as may serve the corporate interest . The Chief
Financial Officer may establish depositories for funds of the Corporation and
shall inform the Board of Governors of such actions taken. The Chief Financial
Officer shall have power to endorse checks, drafts, or other instruments for the
payment of money when necessary or proper, and to deposit the same to the credit
of the Corporation . The Chief Financial Officer may sign all receipts and
vouchers for payments made to the Corporation . The Chief Financial Officer
=sha11-~endec an-aocouiit-o~'A-corjiorate=transactions f6-tTieBoaidofGovemors or-t
the Finance Committee as often as the Board or such Committee shall require
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the same and shall enter in the books to be kept for that purpose full and adequate
account of all moneys received and paid for the account of the Corporation.
6.6
Secretary. The President and CEO, with the approval of the Board of Governors,
shall appoint a Secretary. The Secretary shall record and keep, or shall cause to
be recorded and kept, minutes of all meetings of the Board of Governors and all
committees appointed by the Board of Governors. The Secretary shall likewise
have custody of the minutes and records of the National Conventions and all
proceedings thereof. The Secretary shall attend to the giving of notice of all
meetings of the Board of Governors and its committees. The Secretary shall have
charge of the seal of the Corporation and shall attest to the seal of the Corporation
upon all instruments to be executed under such seal . The Secretary shall in
general perform all the duties of Secretary, subject to the control of the Board of
Governors.
6.7
Assistant Secretaries . The President and CEO may also appoint one or more
assistant secretaries, who shall, in the absence or disability, or at the request of the
Secretary perform the duties of the Secretary and shall perform such other duties
as may from time to time be delegated by the Board of Governors, the Executive
Committee or the President and CEO.
6.8
Administrative Officers . The Board of Governors may establish such
administrative offices, in addition to the offices provided for in this Section 6, as
it shall determine, with such powers and responsibilities as may from time to time
be determined by the Board of Governors. The President and CEO shall appoint
the persons to fill the offices so established, and, in cases in which the Board of
Governors shall so require, such appointments shall be subject to the approval of
the Board of Governors. The President and CEO may establish such other offices
as he or she shall from time to time determine. All officers whose offices have
been established by the President and CEO and all employees of the Corporation
shall be appointed by or under the direction of the President and CEO. The
President and CEO shall determine the titles of all officers appointed pursuant to
this Section 6.8 .
6.9
Term ofOffice. The officers of the Corporation elected or appointed pursuant to
Sections 6.3 through 6.6 shall hold office for a term of one year or until their
successors shall have been appointed or elected. Such term shall commence on
July 1 and shall terminate on June 30 in each year .
6.10
Removal. The officers of the Corporation appointed with the approval of the
Board of Governors shall be subject to removal by the appointing officer with the
approval of the Board of Governors. All other officers and employees of the
Corporation shall be subject to removal by the President and CEO.
Section 7-Alational Conventions
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Bylaws of the American National Red Cross
7.1
Time and Place. The annual meeting of The American National Red Cross shall
be the National Convention of the delegates of the Chartered Units. The National
Convention shall be held annually during the month of May or June, commencing
on such date as shall be specified by the Board of Governors; provided, however,
that if in any year the Board of Governors shall determine it to be impracticable or
inadvisable to hold the National Convention during the month of May or June, the
convention in such year may be held at such other time as the Board of Governors
may specify. The National Convention shall be held in such city and at such
place as the Board of Governors may in each case designate.
7.2
Purposes . Each National Convention shall elect those Governors who are to be
elected by the Chartered Units as provided in Sections 2.5 and 2.8 . The National
Convention shall also serve as the general advisory meeting of The American
National Red Cross and as such shall consider and make recommendations to the
Board of Governors with respect to such questions of policy as may be referred to
it by the Board of Governors or as may be properly brought before it under its
rules. The National Convention shall also receive the report of the Chairman of
the Corporation each year.
7.3
Rules. The Board of Governors shall prescribe rules for the National Convention
covering the procedures for nomination and election of the Board of Governors,
for the establishment of committees, and for such other matters affecting the
conduct and proceedings of the convention as the Board of Governors shall
determine. With respect to all matters not covered by rules adopted by the Board
of Governors, each National Convention shall adopt its own rules.
7.4
National Emergency. In the event that a national emergency shall in the opinion
of the Board of Governors make impossible attendance at the National
Convention by delegates of the Chartered Units in sufficient numbers to ensure
the fulfillment of the purposes of the convention, the Board of Governors shall
prescribe procedures, which shall be consistent with the principles of the
Congressional Charter and of these Bylaws, under which the National
Convention may be held during the period of such national emergency with such
limited attendance as circumstances may permit . Such procedures may include
the circulation of reports and other documents by mail and voting by proxy as
provided in Section 7.7 .
7.5
Composition of Committee on Nominations; Nomination and Election
Procedures . The Committee on Nominations shall consist of 19 members, 17 of
whom shall be elected by the Chartered Units at the National Convention and two
of whom shall be appointed by the Chairman of the Corporation from among the
Governors who were elected by Chartered Units but who are ineligible for
reelection. Elected members shall serve staggered two-year terms, with the
exception of the Chairman who shall serve as Chairman in his or her third term .
The appointed members may serve up to two years . The procedures for
.
:nominat7ori andelectiori-of Govecnois-to be elected-at tlie-National-Conveniioii---shall be such as to ensure equitable representation of all Chartered Units, having
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regard to geographical considerations and to the size of the Chartered Units and of
the populations served thereby. Without limiting the generality of the foregoing,
such procedures shall
(a) permit nominations by petition of such proportion of the Chartered
Units as may be specified by the Board of Governors and
(b) require that the names of all nominees for Governors to be elected by
the Chartered Units shall be circulated to the Chartered Units as far in advance of
the National Convention as practicable.
7.6
Allocation of Voting Delegation . Each Chartered Unit shall be entitled to such
number of voting delegates as shall be determined in the manner specified in the
rules prescribed by the Board of Governors under Section 73 of these Bylaws,
which rules shall be such as to ensure equitable representation of all Chartered
Units, having regard to geographical considerations, to the size of such Units and
to the size of the populations served . At appropriate intervals, the Board of
Governors shall review its rules, acting on the recommendation and advice of the
Disaster and Chapter Services and the Biomedical Services Committees, and may
make whatever modifications thereto it deems appropriate to ensure that all
Chartered Units are equitably represented .
7.7
Voting by Proxy. Voting by proxy at the National Convention shall not be
allowed; provided, however, that in the event of any national emergency that in
the opinion of the Board of Governors makes attendance at the National
Convention impossible, the Board of Governors may permit the election by proxy
of those Governors to be elected by the Chartered Units at the National
Convention .
8 .1
Membership in The American National Red Cross . Any person shall be a
member of The American National Red Cross if he or she (a) makes a monetary
contribution to The American National Red Cross or any of its units, (b) performs
volunteer services for The American National Red Cross or any of its
subdivisions or units, or (c) donates blood to The American National Red Cross .
Membership shall continue for each year in which it is similarly renewed . Any
person who performs volunteer services for or donates blood to The American
National Red Cross shall be deemed to have given the equivalent, in money's
worth, of a financial contribution, but the intent and effect of this sentence is
solely to enable such persons to be eligible under the Congressional Charter for
membership in The American National Red Cross and not to put a monetary value
on such services or donation .
-
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Bylaws of the American National Red Cross
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~ Deleted : May 21
8.2
Termination . Termination of membership by The American National Red Cross
or by any Chartered Unit shall automatically terminate the membership rights of
such person in the Corporation, subject to such individual's right of appeal to the
Corporation through any procedures established by Chartered Units or as
described in Section 9.S,of these Bylaws .__
., .. -- {ueiecea: (b)
9 .1
Not Separate Legal Entities; No Compensation ; Employees Not on Governing
Bodies . Chartered Units shall not be constituted as legal entities separate from the
Corporation . Each member of the governing body of a Chartered Unit shall serve
without compensation for services as such . No employee of the Corporation or
any of its Units may serve on a governing body of a Chartered Unit .
9.2
Granting and Content of Charters. The charter of a Chartered Unit is the
certificate of recognition issued by the Board of Governors of the Corporation
together with a statement of the unit's territorial jurisdiction and, in the case of a
unit the charter of which is for a limited purpose or purposes, a statement thereof.
The Board of Governors may grant a charter to any group of thirty or more
members of The American National Red Cross who have requested permission to
establish a Chartered Unit pursuant to the rules, regulations, and policies of the
Corporation .
9.3
Election Principles and Procedures . Each Chartered Unit shall, in the election of
its governing body and in the election of delegates to the National Convention,
adhere to democratic principles of election, including the following:
(a) A member of The American National Red Cross shall be eligible to
vote in elections for local boards and delegates to the National Convention held
by a Chartered Unit if (i) the member resides in the jurisdiction of the Chartered
Unit ; or (ii) the member has made a monetary contribution, performed volunteer
service or donated blood to a Chartered Unit .
(b) Appropriate and adequate steps shall be taken by each Chartered Unit
so that the entire eligible membership is provided an opportunity to participate in
the election of the members of the Unit's governing body and its delegates to the
National Convention .
(c) Any classification of members on the basis of financial or other type
of contributions shall not affect the voting rights of members, each of whom shall
be entitled to one vote .
(d) Appropriate and adequate procedures shall be adopted to ensure that
each Chartered Unit gives adequate notice of its meetings and the availability of ____ . . .. ~~~; May
-information with respect thereto to ai( eligible_member_---------------------------------oeiecee
: MeYZi
I October 2004
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Page 18
Bylaws of the American National Red Cross
9.4
Rotation . Any member of the governing body of a Chartered Unit who has
served as such for six consecutive years shall be ineligible for reelection for a
period of one year thereafter. The Board of Governors reserves the authority to
grant exceptions to this rotation provision based upon the needs of the
Corporation .
9.5
Inquiries and Hearings; Grievance Procedure Regarding Membership and
Selection of Local Board and Convention Delegates.
(a) The Disaster and Chapter Services and the Biomedical Services
Committees shall have authority to conduct inquiries and/or hearings into such
matters as may be committed to it by the Board of Governors or the Executive
Committee . Upon conclusion of its work, the Disaster and Chapter Services or the
Biomedical Services Committee shall report its findings and recommendations to
the Board of Governors. The Board may thereupon take such action in respect
thereto as it deems appropriate and warranted under the circumstances .
(b) Any 25 members may submit to the Board of Governors a written
petition claiming that the procedures of the Chartered Unit for the admission of
members or for the selection of its governing body or its delegates to the National
Convention are contrary to the principles expressed in the Congressional Charter
and/or these Bylaws . The Board of Governors shall, upon receipt of any such
petition, either itself investigate or cause the Disaster and Chapter Services or the
Biomedical Services Committee to investigate the practices or procedures
complained of and may thereupon require the elimination of any practice or
procedure found to be in violation of such principles and/or take such other or
further action as it may deem appropriate and warranted under the circumstances.
9.6
Imposition of Board-level Sanctions and Revocation of Charter; Irreparable
Harm.
(a) If the President and CEO, or his or her designee, has reason to believe
that a Chartered Unit has violated or is violating any provision of the Unit's
charter or Bylaws, the Congressional Charter, these Bylaws, Board of Governors
Policies, or any provision of Corporate Regulations, the President and CEO, or
his or her designee, may communicate the facts respecting such violation to the
Executive Committee, together with a recommendation for appropriate Board of
Governors-level action with respect thereto. The Executive Committee may
commit the matter to the Disaster and Chapter Services or the Biomedical
Services Committee to conduct investigatory hearings, deliberations and to report
recommendations to the Board. In such case, the Disaster and Chapter Services
or the Biomedical Services Committee shall conduct an inquiry and may at its
discretion afford an opportunity for a hearing, either before itself as a committee
of the whole, or before a designated subcommittee of itself, upon reasonable
notice of the facts and allegations . The Committee or subcommittee shall have
Deleted: May
`-----------------------_ .----,_ _autFiorit---- =examine aII facts and-allegations
--------- . ._
; request-tlie presence o~'wTtnesses,
~ietea: Mey zi
hear testimony, and inquire into any related matters. The Committee or
t------------------ --October 2004
Reflecting Board Actions through nclobcr 15 2004
Page 19
Bylaws of the American National Red Cross
subcommittee may require that all or part of the evidentiary material and
argument be submitted in writing, and may conduct its hearing partially or
exclusively on the written record . Upon conclusion of the investigatory hearing
and deliberations, the Disaster and Chapter Services or the Biomedical Services
Committee (having acted on findings and recommendations of the subcommittee,
if one was convened) shat! report its findings and recommendations to the Board
of Governors.
(b) The Board of Governors reserves solely to itself the authority to
impose the following sanctions, summarily or after such hearing as it may see fit,
upon Units and their officers, management, employees, and volunteers :
(i)
Removal of a chairman and/or members of the board of a
Chartered Unit (the Board of Governors delegates authority to the board of
a Chartered Unit to remove officers or members of the Unit, in conformity
with Corporate Regulations and the bylaws of the Chartered Unit).
(ii)
Requiring the board of a Chartered Unit to take any action,
including amendment of the Unit's bylaws, or to refrain from taking any
action .
(iii)
Removal or restriction of the voting privileges of a
Chartered Unit at the Corporation's National Convention .
(iv)
Charter action (dechartering, rechartering, or changing the
territorial jurisdiction of any Chartered Unit).
(v)
activities .
To permanently suspend all or any part of the Unit's
(vi)
Take such other or further action as it may deem
appropriate and warranted under the circumstances .
(c) If in any case it shall appear to the President and CEO that irreparable
or material harm to The American National Red Cross will result if practices
constituting a violation are not immediately ceased, the President and CEO with
the concurrence of the Chairman of the Corporation and Chairman of the Disaster
and Chapter Services or the Biomedical Services Committee, as appropriate, shall
have power to impose temporarily any Board-level sanctions deemed necessary
and appropriate (including without limitation suspension of a Unit's charter) for a
period of time not to exceed 90 days . For the purposes of this section, the
meaning of "harm" includes, but is not limited to, harm to any member of the
American public, to a unit of the Corporation, or to the Corporation itself. During
the period of sanctions the President and CEO, or his or her designee, shall have
full and direct supervision and control over the Unit and all its activities, and all
~, ~suihority o~`t~heUrilt's_staff aiid-governing body sliall-lie suspendedA~iriquiiy~or
hearing shall be held by the Disaster and Chapter Services or the Biomedical
October 2004
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Page 20
Bylaws of the American National Red Cross
--
Deleted : May
Deleted : May 21
Services Committee or a subcommittee during the period of sanctions . Should a
regularly scheduled meeting of the Board of Governors not take place prior to the
expiration of the 90 day period, the Executive Committee shall have the authority
to extend the temporary suspension . The Board shall take final action at its next
regularly scheduled meeting.
9.7
Delegation ojAuthority to the President and CEO Regarding Chartered Units
The Board of Governors delegates to the President and CEO, or his or her
designee, all such authority as is necessary and appropriate to manage and protect
the interests of the Corporation, consistent with Board of Governors policies and
resolutions.
In addition, the Board of Governors delegates to the President and CEO, or his or
her designee, the specific authority to intervene in the affairs of Chartered Units,
and
(a) To suspend temporarily, upon the concurrence of (a) the Chairman of
the Corporation or in the Chairman's absence any one of its vice chairmen, and (b)
the Chairman of the Biomedical Services or the Chairman of the Disaster and
Chapter Services Committee, as appropriate, the operations of a Chartered Unit.
(b) To alter temporarily the character of the operations of a Chartered
Unit, including the assumption of specific functions performed by the Unit or
through management supervision .
(c) To approve the hiring, compensation, performance evaluation, and
retention of a Chapter Executive which includes the authority to place on leave
and/or terminate the employment of a Chapter Executive.
(d) To place on leave or terminate the employment of a Vice President of
a Blood Services Area or Chief Executive Officer of a Blood Services Region.
(e) To take other actions except those exclusively reserved to the Board of
Governors to conduct the operations of a Chartered Unit necessary to protect the
interests of the American Red Cross.
October 2004
9 .8
Realignment of Territorial Jurisdictions . The Board of Governors may transfer,
in whole or in part, merge, consolidate, or otherwise realign the territorial
jurisdiction and authority of a Chartered Unit.
9 .9
Funds. All funds and property received by or coming into the custody of any
Chartered Unit or other subdivision of the Corporation are property of the
Cdr~otSt1011 tObe expended Of 5~~~1Cd Ollly F(--r purposes autfiorizedby the-
Reflecting Board Actions through October 15, 2004
Page 21
Bylaws of the American National Red Cross
Deleted : May
~ Deleted : May 21
Congressional Charter, these Bylaws, Board of Governors Policies, and
Corporate Regulations .
9.10
Accounts. The accounts of each Chartered Unit shall be audited in a manner
consistent with annual audit requirements issued from time to time by the Audit
Committee of the Board of Governors or the President and CEO or his or her
designee .
9.11
Fiscal Year. The fiscal year of the Corporation and each of its Chartered Units
shall commence on the first day of July and shall end on the 30th day of June in
each year .
10 .1
Authority to Receive. The Corporation may receive gifts, bequests, devises,
legacies, and donations for such purposes as are within the general scope of its
corporate purposes and powers.
10 .2
Endowment Fund. Whenever a gift is designated by the donor to be permanently
retained, the gift shall be received and held in the Endowment Fund .
10 .3
General Fund. Except as provided in Section 10 .2, there shall be received and
held in the general fund of the Corporation all sums received from any source,
including
(a) Monetary contributions, gifts, and donations (except the portion
thereof authorized by Board of Governors Policies, and/or Corporate Regulations
to be retained by the Chartered Units) .
(b) Receipts derived from the Endowment Fund unless a contrary use is
designated.
(c) All other income, receipts, and revenues of the Corporation .
10 .4
10 .5
October 2004
Deposit and Investment . Except as provided in Section 300109 of the
Congressional Charter, the funds of the Corporation shall be deposited in such
banks or other financial institutions as may be designated by the Board of
Governors, and such of these funds as may not be required for current needs shall
be invested in such manner as the Board of Governors may direct . The Board of
Governors shall prescribe suitable regulations for the safekeeping of such
securities .
Audit In addition to the audit provided for by Section 300110 of the
Congressional Charter, the accounts- of the Corporation shall be audited _annually, , _ . . . . Deleted: May
----- --_ by_a recognized firm of independent certified public_accountants._
oeieted: M8Y zi
Reflecting Board Actions through Qctol~er .15_, 2004
Page 22
Bylaws of the American National Red Cross
11 .1
Indemnification. Provided that the provisions of this section and Section 11 .2 are
satisfied, as determined by the Corporation, The American National Red Cross
shall indemnify any person named or threatened to be named a party to a court
proceeding or lawsuit, whether civil or criminal, by reason of the fact that such
person is or was:
(a) a member of the governing body of (i) the Corporation, (ii) any
Chartered Unit, (iii) the American Red Cross Endowment Fund, (iv) the
American Red Cross Retirement System, or (v) the American Red Cross Health
and Life Benefits Plan ; or
(b) an officer, employee, or agent (including a volunteer) of any of the
foregoing acting under its direct supervision and control and within the scope and
course of such person's duties as such .
Any person covered under this section shall be indemnified in full against all
costs and expenses, including attorneys' fees, judgments, fines, and amounts paid
in settlement actually and reasonably incurred by such person, in connection with
the defense of such proceeding or lawsuit.
11 .2
Conditions and Limitations .
(a) Any person seeking indemnification shall (i) notify the General
Counsel of The American National Red Cross in writing as soon as practicable
after such person becomes aware that a claim has been made against him/her, but
in any event fewer than 20 days after the date such person has been served in a
lawsuit, and promptly furnish to the General Counsel all information known to
such person about the proceeding or lawsuit; (ii) agree to representation, defense,
and settlement by counsel selected and approved by the General Counsel; and (iii)
agree that all entitlement to indemnification shall be determined exclusively by
the provisions of this section.
(b) Indemnification under this section shall be made only upon
determination that the person seeking it, in respect to the facts underlying the
proceeding or lawsuit, acted in good faith and in a manner such person reasonably
believed to be in the best interests of The American National Red Cross; that in
respect to any alleged criminal conduct, such person had no reasonable cause to
believe his/her conduct was unlawful ; and that such person did not act with
malice, dishonesty, or recklessness .
(c) As soon as practicable after receipt of such notice, the General
~___,__,___ ._____ .____ ____________, _ -Counsel shall make_a determination as to the provision of indemnification to the
. . . . ..
,_ _person -in- -question ..
- - -- - - - - ----I October 2004
Reflecting Board Actions through Uctob_c_r 15_, 2004
Page 23
Bylaws of the American National Red Cross
Deleted : May 21
(d) If it is subsequently determined that a person is not entitled to
indemnification pursuant to paragraph 11 .2(b), and if any expenses have been
paid on behalf of such person, he or she shall repay to the Corporation any
advances already made.
(e) In the event that indemnification is denied, the individual so denied
indemnification may appeal such determination, within 30 days, to the Executive
Committee. A majority vote of the Executive Committee shall be required to
obtain the indemnification so denied .
11 .3
Outside Directorships. In addition to the indemnification provided above,
indemnification to any volunteer or employee who serves as an outside director or
officer of any other organization or corporation for services in that organization or
corporation shall be provided only upon a finding by the President or his or her
designee that the outside position serves an essential purpose of The American
National Red Cross. Any offer of indemnification shall be in accordance with the
conditions and limitations of this section.
12 .1
Dissolution . All the assets and net earnings of the Corporation are irrevocably
dedicated to charitable purposes and no interest therein shall ever inure to the
benefit of any director, officer, member, or private person or entity. In the event
of dissolution the corporate assets shall be transferred for charitable purposes to
such entity as may be designated by the Congress of the United States.
13 .1
Amendments. These Bylaws may be amended, repealed, or changed by the
affirmative votes at any regular or special meeting of the Board of Governors of a
majority of the Governors present at any such meeting, provided that notice
containing the general effect and intent of the proposed amendments has been
given to all Governors at least ten days prior to such meeting.
14.1
Board of Governors Policy Manual. The Board of Governors may adopt written
policies of the Corporation not inconsistent with the Congressional Charter or
these Bylaws. The policies shall be set forth in the Board of Governors Policy
Manual and the official version shall be kept in the custody of the Secretary.
~_ .____________________ 14 .2 __ ... . . . CorporateRegulations . The President and_CEO,_or his- or her designee, may___ . . . .. .
. promulgate subordinate written ~nrporate Regulations not inconsistent with the _ .
October 2004
Reflecting Board Actions through OclgUcr 15, 2004
Page 24
Bylaws ofthe American National Red Cross
Deleted: May
{ Deleted: May 21
Congressional Charter, these Bylaws, the Board ofGovernors Policy Manual, or
any other action of the Board of Governors.
-
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------------------ -------------------------------------------------------------, . ---
- -
'
-
---
- ----- - --
Page 25
Bylaws ofthe American National Red Cross
Deleted : May
-L~eletCd : May 21
American National Red Cross and
Its Constituent Chapters and Branches
IRS Form 990
June 30, 2004
53-0196605
Statement 12
PART VIII - Relationship of Activities to the Accomplishment of Exempt Purposes
Description of Services Provided
93(a)
Distribution of previously collected and tested blood products to hospitals and other institutions
contributed significantly to the safety and availability of the U.S . blood supply in emergency
situations .
93(b)
Program materials and textbooks related to first aid, health, and accident prevention and other
safety subjects are provided as courses or separately, to help people prevent, prepare for and
handle emergencies.
93(c)
AIDS education and research and related disaster and health services programs .
93(g)
FEMA reimbursements, AIDS education and research, and related disaster health services
programs .
103(a) Refunds, discounts, salvage sales, service fees, royalties, credits, and rebates .
Statement 12
Schedule A - Pert I
Compensation of the Five Highest Peed Employees Other Than Officers, Directors, and Trustees
American National Red Cross and Its Constituent Chapters and Branches
June 30,2004
53-OI96605
Statement 13
Schedule A - Pert I
(A) Name end address
John D Campbell
2025 E Street, N W , Washington, DC 20006
(B) Title and average hours per
week devoted to position
SVP, Disaster & Chapter Services Finance
60 hours per week
For the period 7/1/03 - 1/30/04
Severance
(C) Compensation
(ifnot peed, enter -0-)
(D) Contributions to
employee benefit plans &
deferred compensation
(E) Expense
account end other
allowances
227,446
20,874
5,835
99,009
44,004
-
Donald Dudley Jr
2025 E Street, N W , Washington, DC 20006
SVP, External Afflurs, Biomedical Services
60 hours per weed
535,477 relocation costs included m Column E
280,020
21,613
43,127
Thomas Schwemngar
SVP & CIO, Information Systems
312,026
13,363
544
John Seitz
SVP, Growth & Integrated Development
300,014
19,318
-
2023 E Sweet, N W, Washington, DC 20006
60 hours per week
Allan Ross
VP, Technical Operations
292,668
16,289
-
2025 E Street, N W, Washington, DC 20006
60 hours per week
2025 E Street, N W, Washington, DC 20006
60 hours per week
Attachment "A"
IRS Form 990
June 30, 2004
53-0196605
THE AMERICAN RED CROSS
Consolidated Financial Statements
June 30, 2004
(With Independent Auditors' Report Thereon)
I
KPMG LLP
2001 M Street, NW
Washington, DC 20036
Independent Auditors' Report
The Board of Governors
The American Red Cross:
We have audited the accompanying consolidated statement of financial position of the American Red
Cross as of June 30, 2004, and the related consolidated statements of activities, functional expenses, and
cash flows for the year then ended. These consolidated financial statements are the responsibility of
management of the American Red Cross. Our responsibility is to express an opinion on these consolidated
financial statements based on our audit. We did not audit the financial statements of certain chapters, which
statements reflect total assets constituting 26 percent and total revenues and gains constituting 16 percent,
respectively, of the consolidated totals . Those statements were audited by other auditors whose reports
have been furnished to us, and our opinion, insofar as it relates to amounts included for such chapters, is
based solely on the reports of the other auditors . The prior year summarized comparative information has
been derived from the American Red Cross' 2003 consolidated financial statements and, in our report
dated October 3, 2003, we expressed an unqualified opinion on those consolidated financial statements .
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements . An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation . We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, based on our audit and the reports of the other auditors, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of the American
Red Cross as of June 30, 2004, and the changes in its net assets and its cash flows for the year ended in
conformity with accounting principles generally accepted in the United States of America.
K''M(Z' u.-P
October 1, 2004
KPMG LLP, a U S limited liability partnership, is the U S
member firm of KPMG International, a Swiss cooperative
THE AMERICAN RED CROSS
Consolidated Statement of Financial Position
June 30, 2004
(with summarized information as of June 30, 2003)
(In thousands)
Assets
Current easels
Cash and cash equivalents
Investments (Notes 8,9 . end 14)
ReceivaDles, net of allowance for doubtful accounts
of $8,748 in 2004 and $17,022 in 2003
Trade
Contributions (Note 2)
Inventories, net of allowance for obsolescence of $2,296
m 2004 and $6,925 in 2003
Other assets
Temporarily
Restricted
Unrestricted
$
148,802
282,789
T
204,535
18,469
Permanently
Restricted
S
867
6,615
Totals
2004
$
354,204
307,873
$
2003
446,892
289,360
217,336
13,202
16,941
91,674
441
234,277
105,317
239,218
113,229
166,396
10,135
2,958
4,892
157
169,354
15,184
170,921
15,402
838,660
339.469
8,080
1,186,209
1,275,022
Investments (Notes 8, 9, and 14)
Contributions receivable (Note 2)
Pension intangible asset (Note 11)
Land, buildings, and other property, set (Node 3)
Other soars (Note 9)
676,151
5,822
1 .001,920
10,060
52,286
18,863
2,182
373,110
995
46,870
1,101,547
25,680
1,001,920
59,112
1,026,460
27,432
13,632
930,110
58,533
Total easels
2,532,613
412, 800
429 ,055
3,374 468
3, 333 , 189
Total current assets
Liabilities and Net Assets
Current liabilities
Accounts payable end accrued expenses
Current portion of debt end capital lease (Notes 4 and 5)
Postretaement benefits (Note 11)
Other current liabilities (Note 9)
365,254
87,308
27,396
28,485
-
-
365,254
87,308
27,396
28,485
371,793
75505
12,828
33,630
Total current liabilities
508,443
-
-
508,443
493,756
Debt and capital leases (Notes 4 end 5)
Pension end postretuement benefits (Note 11)
Other liabilities (Note 9)
356,012
212,369
96,663
-
-
356,012
212,369
96,663
344,912
237,741
89,964
Total liabilities
1,173,487
-
-
1,!73,487
1 .166,373
Net assets (Notes 6, 7 and 10)
1,359,126
2,200,981
2,166,816
412 .800
429,055
Commitments end contingencies (Notes 4, 5, 13 end 14)
Total liabilities and net assets
See accompanying notes W the consolidated financial statements
$
2,532,613
$
412,800
$
429.055
S
3,374,468
S
3,333,189
THE AMERICAN RED CROSS
Consolidated Statement of Activities
Year ended June 30, 2004
(with summarized information for the year ended June 30, 2003)
(In thousands)
Unrestricted
Operating revenues and gams
Public Support.
169,046
59,556
61,636
21,071
21,060
Corpaare, Foundation and Individual Giving
United Way and other federated
L.egacies and bequests (Notes 7 and 9)
Services and materials
Grants
Products end services
Biomedical
Program materials
Temporarily
Restricted
$
2,119,298
144,538
Contracts
Investment income (Note 8)
Other revenues
Net assets released from restrictions
105,959
104,279
7,816
41,414
52,813
Permanently
Restricted
$
522
24,113
-
Touts
2004
$
275.005
163,835
93,565
62,485
73.873
$
2003
285,881
176,493
93 .781
61,071
75,191
-
2,119,298
145.060
2,016,768
148,692
46,826
61,190
49,204
372,071
1,155
(372,071)
Total operating revenues and gams
3,125,496
(58,113)
24,113
3,091,496
3,033,775
Operating expenses
Program services
Armed Forces Emergency Services
Domestic disaster services
Lebatydisaster relief -Sept I1 response
Biomedical services (Note 13)
Health and safety services
Community services
International relief and development services
60,896
261,651
52,101
2,133,382
216,265
135,498
54,963
-
-
-
-
60,896
261,651
52,101
2,133,382
216.265
135,498
54,963
67.743
317,852
209,117
2,033,915
221,619
153,180
67,201
2,914,756
3.070,627
111,178
173,518
122,946
176.080
284,696
299.026
3,199,452
3 .369,653
Total program services
Fund raising (Note 12)
Management and general
111,178
173,518
Total supporting services
-
-
284,696
Total operating expenses
3,199,452
Change mnetassets from operations
(73,956)
Nonoperaung gains (losses) (Notes 4 end 8)
Additional mioimumpension liability (Notell)
86,042
54,103
Change m net assets
66,189
Net assets, beginning of year
See accompanying notes to the consolidated financial statements
46,826
62,345
49.2(?4
2,914,756
Supporting services
Net assets, end of year
-
$
1,359,126
-
-
(58,113)
24,113
(107,956)
(335,878)
1,336
-
88.018
54,103
(18 .475)
(54 .103)
25,449
34,165
(408 .456)
403 .606
2,166,816
640
(57,473)
1,292,937
470.273
$
59,970
69,485
46,443
412,800
S
429,055
$
2,200,981
2,575,272
$
2,166,816
TIC AMERICAN RED CROSS
Statement of Functional Expenses
Year ended June 30, 2004
(With summariz ed information for the year ended June 30, 2003)
(In thousands)
Program Services
Armed Forces
Emvgency
Services
Salanesandwages
Employee benefits
$
Subtotal
Travel and maintenance
Equipment maintenance and rectal
Supplies cad matenals
Contractual sauces
Financial and material assistance
Depreciation and amortization
Total expenses
S
33,987
8,990
Domestic
Disaster
Services
$
7580
20,051
Liberty Disaster
Relief -Sept 1l
Response
$
8,856
1,33
Health and
Safety
Services
Biomedical
Services
S
835.690
229,125
$
100,134
25,247
Int'l Relief &
Development
Services
Community
Services
$
55,743
14,651
$
12,736
3.519
Total
Program
Services
S
1,122,726
303,316
42,977
95,631
10S89
1,064.815
125 .381
70,394
16,255
1,426 .042
1,133
1,030
2,572
8,866
2,568
1,750
15,552
9,626
13,463
47,089
69,483
10,807
288
182
165
8,310
32,567
32,619
58,608
455,247
465 .893
3,168
53 .032
3,834
4,534
39,581
32,514
2,890
7,531
3,210
5 .293
17,657
20,220
13,516
5,208
2,360
1,234
806
10,681
23,081
546
58,996
80.507
529,491
593 .573
147,273
78,874
60,896
S
261,651
$
52,101
S
2,133,382
$
216.265
$
135,498
Supporting Services
Management
and
General
M1,13d
Raising
Saltines and wages
Employee benefits
$
44,530
11,610
3
86,617
23,598
Total
Supporting
Services
$
131,147
35.208
Total Expenses
2004
2003
$
1,253,873
338524
$
1,234,120
295,062
Subtotal
56,140
110,215
166,355
1,592,397
1,529,182
Travel and maintenance
Equipment maintenance and rental
Supplies and materials
Contractual services
Financial and material assistance
Depreciation and ammnzadon
2,420
1,442
13,482
34,083
1,014
2597
4,591
5,065
5,559
32,920
1,403
13,765
7,011
6,507
19,041
67,003
2,417
16,362
66,007
87,014
548,532
660,576
149,690
95,236
86,433
91,148
565,608
630,354
378,434
88,494
Total expenses
See accompanying notes to the consolidated finance! statements .
$
111,178
$
173,518
S
284,696
$
3,199,452
S
3,369,653
S
54,963
S
2,914,756
THE AMERICAN RED CROSS
Consolidated Statement of Cash Flows
Year ended June 30, 2004
(with comparative information for the year ended June 30, 2003)
(In thousands)
Cash flows from operating activitiesChange m net assets
Adjustments to reconcile change in net assets to net cash used m
operating activities.
Depreciation and amortization
Provision for doubtful accounts receivable
Provision for obsolete inventory
Net gam on sales of property
Net investment and derivative (gains) losses
Additional minimum pennon liability
Permanently restricted contributions
Changes m operating assets and liabilities:
Decrease m recervables
Decrease m inventories
Decrease in other assets
Decrease (increase) m pension intangible asset
(Decrease) increase m accounts payable and accrued expenses
Increase in other liabilities
Increase in pension and postreurement benefits
2004
S
34,165
2003
S
(408,45
95,236
7,524
690
(11,765)
(94,500)
(54,103)
(?A,113)
88,494
13,934
6,775
(823)
10,806
54,103
(24,272)
7,080
877
(362)
15,632
(6,538)
3,765
43,299
79,761
25,958
698
(15,632)
75,131
4,897
57,500
16,887
(31,12
Cash flows tom investing activities
Purchases of property
Proceeds from sale of property
Purchases o[investments
Proceeds from sales of investments
(170,185)
16,433
(1x31,372)
243,783
(197,785)
5,655
(185,503)
201,081
Net cash used m investing activities
(151,341)
(176,552)
Cash flows from financing activities.
Permanently restricted contributions
Proceeds from borrowings
Repayments of debt
20,392
80,498
(59,124)
23,637
43.379
(22,419)
Net cash provided by financing activities
41,766
44,597
Net decrease in cash and cash equivalents
(92,688)
(163,081)
Cash and cash equivalents, beginning of year
446,892
609,973
Net cash used m operating activities
Cash and cash equivalents, end of year
Supplemental disclosures of cash flow information .
Cash paid during the year for interest
Noncash investing and financing transacuons~
Acqmsinon of equipment under capital lease agreements
Donated stack and beneficial interest in perpetual oust
See accompanying notes to the consolidated financial statements .
$
354,204
$
446,892
15,534
$
18,132
1,529
6,391
2,110
1,485
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30> 2004
(With summarized information for the year ended June 30, 2003)
(1)
Summary of Significant Accounting Policies
Organization and Basis of Presentation :
The American Red Cross (the Organization) was
established by an Act of the United States Congress on January 5, 1905 for the primary purposes of
furnishing volunteer aid to the sick and wounded of the Armed Forces in time of war and to carry on a
system of national and international relief in time of peace to mitigate the suffering caused by fire,
famine, floods and other great natural calamities . The mission of the Organization has expanded since
that time to help people prevent, prepare for, and respond to emergencies.
The accompanying consolidated financial statements present the consolidated financial position and
changes in net assets and cash flows of the Organization . The Organization has national and
international programs that are conducted by its headquarters (National Sector) operations, biomedical
services operations, and chartered local chapters . Also included in the consolidated financial statements
are Special Project Funds invested for the benefit of all Red Cross operating units, and the net assets
and operations of Boardman Indemnity Ltd., a 100 percent-owned captive insurance subsidiary. All
significant infra-organizational accounts and transactions have been eliminated .
Program activities include armed forces emergency services, health and safety services, disaster
services, community services, international services, biomedical services and the Organization's
response to September 11 . Biomedical services includes activities associated with the collection,
processing, testing, and distribution of whole blood and components, tissue, and plasma derivative
products at 35 local blood services region operations, nine national testing laboratories, a biomedical
research facility, and related national support functions.
Revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed
restrictions. Accordingly, the net assets of the Organization and changes therein are classified and
reported as follows:
Unrestricted net assets - Net assets that are not subject to any donor-imposed
stipulations .
Temporarily restricted net assets - Net assets subject to donor-imposed restrictions on
their use that may be met either by actions of the Organization or the passage of time.
Permanently restricted net assets - Net assets subject to donor-imposed or other legal
restrictions requiring that the principal be maintained permanently by the Organization .
Generally, the donors permit the Organization to use all or part of the income earned for
either general or donor-specified purposes.
The consolidated financial statements are presented with certain prior year summarized comparative
information . Such information does not include sufficient detail to constitute a presentation in
conformity with generally accepted accounting principles . Accordingly, such information should be
read in conjunction with the Organization's consolidated financial statements for the year ended
June 30, 2003, from which the summarized information was derived.
6
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
Use of Estimates:
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities in the financial statements . Estimates and assumptions may also affect
disclosure of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses . Actual results could differ from management's estimates .
The Organization considers all highly liquid investments purchased with an
Cash Equivalents:
average maturity of three months or less to be cash equivalents . Cash equivalents consisted of money
market mutual funds and overnight investments of approximately $237 million and $289 million as of
June 30, 2004 and 2003, respectively .
Investments:
Investments are reported at fair value. The separately managed Endowment Fund
accumulates realized gains and losses on security transactions which are available to meet current
expenses to the extent approved by the Board of Governors. Amounts annually available for expenditure
are based on the Board of Governors' approved spending rate used under the total-return method (Note
7) .
Investment income classified as operating revenue consists of interest and dividend income on
investments and any gains approved for use in operations . All other realized and unrealized gains or
losses are classified as nonoperating activity and are available to support operations in future years and
to offset potential market declines .
The Organization also invests certain operating funds in the Select Investment Program (Program), a
family of commingled funds managed exclusively for the American Red Cross. The Organization
participates in the Program by purchasing units in various funds at the current market value.
Investments classified as current are available for operations in the next fiscal year.
Derivative Financial Instruments:
The Organization makes limited use of derivative financial
instruments for the purpose of managing interest rate risk. Derivative financial instruments are recorded
at their fair value.
Fair Values of Financial Instruments:
Various methods and assumptions were used to estimate the
fair value of each class of financial instruments . Cash and cash equivalents are valued at their carrying
amount due to their short maturities . Investments are reported at fair value based on quoted market
prices or, in the case of alternative investments, at values provided by the fund managers or general
partners based on quoted market prices, if available, or other valuation methods. Debt is valued at rates
currently available to the Organization for issuances with similar terms and remaining maturities .
Interest rate swap agreements are valued at the net present value of future cash flows attributable to the
difference between the contractual variable and fixed rates in those agreements .
7
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
The estimated fair values of the Organization's financial instruments were as follows at June 30, 2004
and 2003 (in thousands):
Carrying
Amount
Assets:
Cash and cash equivalents
Investments :
Current
Noncurrent
Liabilities:
Current debt
Noncurrent debt
Interest rate swap agreements
354,204
2004
$
Fair
Value
354,204
Carrying
Amount
$
2003
446,892
$
Fair
Value
446,892
307,873
1,101,547
307,873
1,101,547
289,360
1,026,460
289,360
1,026,460
87,308
356,012
3,620
87,308
364,963
3,620
75,505
344,912
7,336
75,505
363,375
7,336
The carrying value of all other financial instruments approximates fair value.
Inventories:
Inventories of supplies purchased for use in program and supporting services are carried
at the lower of first-in, first-out cost or market . Plasma derivatives, whole blood and its components and
tissue products are valued at the lower of average cost or market .
Land, Buildings, and Other Property :
Purchases of land, buildings, and other property having a
unit cost per established guidelines and a useful life of three or more years are capitalized at cost .
Donated assets are capitalized at the estimated fair value at date of receipt. Interest expense incurred
during a period of construction, less related interest income earned on proceeds of tax-exempt
borrowings, is capitalized . Property under capital leases is amortized over the lease term .
Application development costs incurred to develop internal-use software are capitalized and amortized
over the expected useful life of the software application. Activities that are considered application
development include design of software configuration and interfaces, coding, installation to hardware,
and testing . All other expenses incurred to develop internal-use software are expensed as incurred.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets as
follows:
Class of property
Buildings
Building improvements
Equipment and software
Useful life in years
45
10
3-15
Property and Casualty Insurance :
The Organization maintains various insurance policies under
which it assumes a portion of each insured loss. Assumed losses are retained by the Organization
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
through its wholly owned insurance subsidiary, Boardman Indemnity Ltd . (Boardman) .
The
Organization also purchases insurance to supplement the coverage by Boardman . The liabilities for
outstanding losses and incurred but not reported claims have been determined based on actuarial studies
and are reflected as other liabilities in the accompanying consolidated statement of financial position,
and were approximately $74 million and $68 million at June 30, 2004 and 2003, respectively .
Revenue Recognition:
Contributions, which include unconditional promises to give (pledges), are
recognized as revenues in the period received or promised . Conditional contributions are recorded
when the conditions have been met. Contributions are considered to be unrestricted unless specifically
restricted by the donor.
The Organization reports contributions in the temporarily or permanently restricted net asset class if
they are received with donor stipulations as to their use. When a donor restriction expires, that is, when
a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets
are released and reclassified to unrestricted net assets in the consolidated statement of activities .
Donor-restricted contributions are initially reported in the temporarily restricted net asset class, even if it
is anticipated such restrictions will be met in the current reporting period .
Products and services revenue, which arises principally from sales of whole blood and components and
plasma derivative products and health and safety course fees, is generally recognized upon delivery of
the product or services to the customer .
Gains and losses on investments and other assets and liabilities are reported as increases or decreases in
unrestricted net assets unless their use is restricted by explicit donor stipulation or by law.
Contributed Services and Materials:
Contributed services are reported at fair value in the financial
statements for voluntary donations of services when those services (1) create or enhance non-financial
assets or (2) require specialized skills provided by individuals possessing those skills and are services
which would be typically purchased if not provided by donation . The Organization recorded
contributed services revenue, for the years ended June 30, 2004 and 2003, of approximately $19 million
and $11 million, respectively, mostly in support of the disaster services program.
Donated materials are recorded at their fair value at the date of the gift. The Organization does not
imply time restrictions for gifts of long-lived assets. As a result, in the absence of donor-imposed
restrictions, gifts of long-lived assets are reported as unrestricted revenue .
Research and Development Costs:
Since 1956, the American Red Cross has engaged in blood
research to further enhance the safety of the blood supply . Research efforts have been directed toward
enhancing patient care by improving knowledge of blood and blood products, investigating the nature of
the transmission and treatment of bloodbome diseases, developing safer blood collection, testing, and
processing instruments and procedures, and introducing new or improved programs and services . For
the years ended June 30, 2004 and 2003, approximately $35 million and $40 million, respectively, was
expended on research and development efforts by Biomedical Services .
9
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
Income Taxes:
The American Red Cross is a not-for-profit organization incorporated by the U.S .
Congress through the issuance of a federal charter. The Organization is exempt from federal income
taxes under Section 501(c)(3) of the Internal Revenue Code, except on net income derived from
unrelated business activities . The Organization recorded a tax liability of $93,719 for the year ended
June 30, 2003 for unrelated business activity, which was paid in fiscal year 2004 .
Reclassifications :
(2)
Certain 2003 balances have been reclassified to conform to the 2004 presentation.
Contributions Receivable
The Organization anticipates collection of outstanding contributions receivable as follows at June 30,
2004 and 2003 (in thousands) :
2004
Amount receivable within one year
Amount receivable in 1 to 5 years
$
Total contributions receivable before allowance
for uncollecdble amounts
Less allowance for uncollectible amounts
Contributions receivable, net
Less current portion
Contributions receivable, net, noncurrent
$
107,080
25,680
2003
$
114,621
27,432
132,760
142,053
(1,763)
(1,392)
130,997
140,661
(105,317)
(113,229)
25,680
$
27,432
Amounts presented above have been discounted to present value using rates averaging approximately
2 percent. The American Red Cross had commitments from donors for conditional contributions
approximating $1 million and $6 million at June 30, 2004 and 2003 respectively. These pledges will be
accrued in future periods as the conditions are met.
10
(Continued)
TAE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(3)
Land, Buildings, and Other Property
The cost and accumulated depreciation of land, buildings, and other property were as follows at
June 30, 2004 and 2003 (in thousands):
2004
Land
Buildings and improvements
Equipment and software
Buildings and equipment under capital lease
$
76,510
917,416
692,462
23,543
Total cost of assets placed in service
Less accumulated depreciation and amortization
Construction-in-progress
Land, buildings, and other property, net
(4)
2003
$
$
72,283
859,246
635,110
35,834
1,709,931
1,602,473
(792,380)
84,369
(731,637)
59,274
1,001,920
$
930,110
Debt
Debt consists of the following at June 30, 2004 and 2003 (in thousands) :
2004
Lines of credit with various banks, due 2005 through 2006,
bearing interest at various rates averaging 1 .5% in 2004
and 1 .9% in 2003
$
Various notes, mortgages and bonds payable, bearing interest
at rates ranging from 0.8% to 7.8% due 2005 through 2030,
repayment terms generally require monthly payments of interest
and annual principal reductions, and are generally backed
only by the full faith and credit of the American Red Cross
Total bonds and notes payable
Obligations under capital leases (Note 5)
Total debt
Less current portion
Debt, noncurrent portion
$
2003
80,000 $
20,000
355,288
390,209
435,288
410,209
8,032
10,208
443,320
420,417
(87,308)
(75,505)
356,012
$
344,912
Certain bonds are subject to redemption prior to maturity at the option of the Organization.
Additionally, registered owners of these bonds may demand repurchase of the bonds by the bond agent
or the depository for an amount equal to the principal price plus accrued interest. Letters of credit or
11
(Continued)
TAE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
standby credit facilities have been established with multiple banks in the aggregate amount of
$225 million and $228 million as of June 30, 2004 and 2003 respectively, to provide liquidity in the
event other funding is not available to repurchase these bonds. The depository and bond agent have the
authority to use standby credit facilities for the repurchase of certain bonds . The standby credit facilities
had not been used as of June 30, 2004 and 2003 .
Scheduled maturities and sinking fund requirements of the debt and credit agreements as of June 30,
2004 are as follows (in thousands):
Years ending June 30 :
2005
2006
2007
2008
2009
Thereafter
$
87,308
38,367
18,917
18,788
19,134
260,806
Total
$
443,320
Interest expense was approximately $16 million and $17 million for the years ended June 30, 2004 and
2003, respectively, which is included in contractual services on the statement of functional expenses .
Bank Lines of Credit :
The Organization maintained numerous committed and uncommitted lines of
credit with various banks for its working capital requirements . As of June 30, 2004 and 2003,
$80 million and $20 million, respectively, had been borrowed under lines of credit to support
operations .
Interest Rate Swap Agreements:
Interest rate swap agreements are used by the Organization to
mitigate the risk of changes in interest rates associated with variable interest rate indebtedness . Under
such arrangements, a portion of variable rate indebtedness is converted to fixed rates based on a
notional principal amount . At June 30, 2004, the aggregate notional principal amount under the interest
rate swap agreements, which mature at various dates through 2008, totaled $67 million. At June 30,
2004, the estimated fair value of the interest rate swap agreements was a liability of approximately
$4 million.
The Organization applies the provisions of FASB Statement No . 133, Accounting for Derivative
Instruments and Hedging Activities . This standard requires certain derivative financial instruments to
be recorded at fair value. The interest rate swap agreements described above are derivative instruments
that are required to be recorded at fair value. The change in fair value on these interest rate swap
agreements for the year ended June 30, 2004 was a gain of approximately $4 million and is included as
a nonoperating gain in the consolidated statement of activities .
Letters of Credit :
The Organization had unused letters of credit outstanding of approximately
$151 million at June 30, 2004.
12
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(5)
Leases
The Organization leases certain buildings and equipment for use in its operations . The following
summarizes minimum future rental payments under capital and noncancelable operating leases for the
fiscal years ending June 30 (in thousands) :
Operating
2005
2006
2007
2008
2009
Thereafter
Total minimum lease payments
Capital
$
34,254
24,839
18,734
12,138
9,252
14,118
3,237
2,022
1,405
795
651
1,010
$
113,335
9,120
Less amounts representing interest
(1,088)
Present value of net minimum lease payments (Note 4)
$
8,032
Total rent expense was approximately $65 million and $69 million for the years ended June 30, 2004
and 2003, respectively, which is included in contractual services on the statement of functional
expenses .
13
(Continued)
TAE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(6)
Net Assets
Unrestricted net assets consisted of the following at June 30, 2004 and 2003 (m thousands) :
Designated by the Board of Governors for:
Disaster relief (Note 10)
Biomedical services
Endowment inflation adjustment reserve (Note 7)
Endowment distribution reserve (Note 7)
Funds functioning as endowment
Contingencies
Retiree health benefits
Special projects fund
Replacement and improvement of buildings and equipment
Other purposes
Undesignated
Total unrestricted net assets
2004
2003
709
382,730
85,900
45,800
147,596
77,657
105,226
77,182
115,212
43,045
278,069
119
374,730
80,700
56,100
157,822
57,224
96,810
73,912
125,456
60,594
209,470
1,359,126
$
1,292,937
In October 1988, the Board of Governors approved the establishment of two designated funds to
provide future long-term benefits as described below:
Special Projects Fund - The Special Projects Fund is controlled by the Board of Governors, to
be used for the humanitarian work of the Organization. As stipulated by the Board,
approximately $77 million and $74 million at June 30, 2004 and 2003 respectively, functioned
in a manner similar to an endowment whereby the principal amount generates income which is
available for expenditures, subject to action by the Board of Governors. The Board approved
approximately $7 million and $8 million of expenditures from this fund in fiscal years 2004 and
2003, respectively .
Retiree Health Benefits Fund - The Retiree Health Benefits Fund was established by the Board
of Governors to fund a portion of premiums for retirees participating in the American Red Cross
health benefits plan on a scale determined by years of service with the Organization . A total of
approximately $4 million was expended in each of the fiscal years 2004 and 2003, in the form
of health care premium subsidies. At June 30, 2004 and 2003, $105 million and $97 million,
respectively, remained designated by the Board of Governors to support future retiree medical
costs.
14
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
Temporarily restricted net assets are available for the following purposes or periods at June 30, 2004
and 2003 (in thousands):
2004
2003
Disaster services
Liberty disaster relief - Sept 11 response
Biomedical services
35,367
169,466
8,328
3,824
29,953
10,031
28,014
24,379
103,438
Health and safety services
International services
Community services
Buildings and equipment
Other specific purposes
For periods after June 30, 2004 and 2003, respectively
412,800
Total temporarily restricted net assets
27,730
219,272
8,610
3,430
44,342
12,120
31,047
29,829
93,893
$
470,273
Permanently restricted net assets consist primarily of endowed contributions (Note 7), the income from
which is available to fund the following at June 30, 2004 and 2003 (in thousands) :
2004
General operations
Specific purposes
Total permanently restricted net assets
(7)
$
2003
405,548
23,507
$
381,366
22,240
429,055
$
403,606
Endowment Fund
The Organization has maintained a national Endowment Fund (Fund) since 1905 and has consistently
promoted public gifts for the Fund with the understanding that the principal would be held inviolate and
only the income used for current purposes .
Since 1910, the Fund has, by Act of Congress (36 U.S . Code Section 300109), been under the control of
a separate Board of Trustees, appointed by the Board of Governors, who are required to keep and invest
the Fund under their management . Since that date, as stated in the bylaws of the Organization, and
because of public declarations as to their intended use, gifts to the American Red Cross National Sector
under wills, trusts, and similar instruments which do not direct some other use of such funds are
recorded as permanently restricted to be kept and invested as such in perpetuity .
The Fund includes contributions, some of which were accepted with specific donor stipulation that the
principal be maintained intact, until the occurrence of a specific event, or for a specific period. The
Fund includes additional contributions not so stipulated which resulted from appeals for endowment
fund gifts to be managed as provided above. Based upon the manner in which the Organization has
15
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
solicited and continues to solicit such gifts, it has been determined by independent legal counsel that
such gifts must be placed in the Endowment Fund and, accordingly, reported as permanently restricted
net assets .
At June 30, 2004 and 2003, respectively, $132 million and $137 million of cumulative net realized
gains on endowed investments were reported as unrestricted net assets . Of these amounts, as of
June 30, 2004 and 2003, respectively, approximately $86 million and $81 million have been designated
by the Board of Governors as an inflation adjustment reserve to protect donor corpus . This reserve
increases each year at a rate equal to 75 percent of the increase in the Consumer Price Index applied
against the book value of the original donor corpus . The remaining $46 million and $56 million as of
June 30, 2004 and 2003, respectively, were designated as a distribution reserve to provide funds for
operations in those years when net interest and dividends are less than the approved distribution rate .
Total-Return Method : The American Red Cross makes distributions from the Fund for current
operations using the total-return method . Under the total-return method, fund distributions consist of
net investment income and may, under certain conditions, include a portion of the cumulative realized
gains. The Fund's Board of Trustees establishes a spending rate as a percentage of the three-year
calendar moving average fair value of endowed funds at the beginning of each fiscal year. Distributions
are made in an amount equal to the product of the fair value of endowed funds at the beginning of the
year and the spending rate. To the extent that the distributions exceed net investment income, they are
made from realized gains.
A spending rate of 5.5 percent for both fiscal years 2004 and 2003, resulted in total distributions related
to endowment funds of approximately $26 million and $25 million for the years ended June 30, 2004
and 2003, respectively . Of these amounts, approximately $20 million and $19 million represented
utilization of accumulated realized gains for the years ended June 30, 2004 and 2003, respectively .
16
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(8)
Investments
The following schedule summarizes the composition of investment income for the years ended June 30,
2004 and 2003 (in thousands) :
2004
Temporarily Permanently
Unrestricted
restricted
restricted
Total
Dividends and interest
Net operating investment gains
$
53,348
7,842
Investment income
available for operations
Net nonoperating investment gains
Total return on investments
$
1,011
144
$
$
54,359
7,986
1,155
-
62,345
80,821
640
1,336
82,797
142,011
$
59,725
8,193
Investment income
available for operations
67,918
Net nonoperating investment losses
(15,796)
Total return on investments
-
61,190
$
$
52,122
17
1,795
$
1,336
$
2003
Temporarily Permanently
restricted
restricted
Unrestricted
Dividends and interest
Net operating investment gains
$
$
1,457
110
$
1,567
(628)
$
939
$
-
145,142
Total
$
61,182
8,303
-
69,485
(732)
(17,156)
(732) $
52,329
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
The fair value of investments was as follows at June 30, 2004 and 2003 (in thousands) :
2004
U.S. Government securities
Corporate bonds and notes
Common and preferred stocks
Mortgage and asset backed securities
Marketable and nonmarketable alternative funds
Money market and other
Total investments at fair value
Less current portion
$
349,125
164,291
467,455
83,339
93,829
157,781
1,409,420
1,315,820
(307,873)
(289,360)
1,101,547
Investments, noncurrent portion
(9)
339,656
145,977
501,749
91,366
118,773
211,899
2003
$
1,026,460
Split Interest Agreements
The Organization maintains split interest agreements in the form of charitable gift annuities, perpetual
trusts held by third parties, charitable remainder trusts and pooled income funds. Assets of split interest
agreements of $125 million and $124 million are included in investments and other receivables on the
consolidated statement of financial position at June 30, 2004 and 2003, respectively . The value of split
interest agreements is measured as the Organization's fair value share of the assets . Liabilities
associated with these agreements are $24 million, of which $5 million is included with other current
liabilities and $19 million is included with other noncurrent liabilities on the consolidated statement of
financial position.
18
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(10) Disaster Relief Funds
Disaster Relief Fund : In accordance with procedures directed by the Board of Governors, any unspent
unrestricted disaster relief funds at the end of a fiscal year are set aside for future disaster operations in
the Disaster Relief Fund . Additionally, unspent contributions restricted by donors for disaster relief are
also available for expenditure in future years.
The following is a summary of Disaster Relief Fund balances for the last ten fiscal years:
Balance at June 30 (In thousands)
Unrestricted
Board
Donor
Designated
Restricted
Total
Fiscal years:
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$
52,671
60,858
58,510
81,424
65,203
55,084
28,192
29,058
119
709
$
41,601
11,679
8,316
11,835
9,210
6,196
13,576
53,972
8,069
16,673
$
94,272
72,537
66,826
93,259
74,413
61,280
41,768
83,030
8,188
17,382
The summary above does not include donor restricted funds associated with the Liberty Disaster Relief
Fund - September 11 Response. As of June 30, 2004, donor restricted funds of approximately
$169 million were held by the Organization for future expenditures for September 11 relief and
response (Note 6) .
(11) Benefit Plans
Employees of the American Red Cross, including participating
Pension and Postretirement Plans:
local chapters, are covered by the Organization's pension plan (the Retirement System) after one year of
employment.
For funding purposes under the Plan, normal pension costs are determined by the projected unit credit
method and are funded currently . The Plan provides a pension funded entirely by the employer.
Voluntary contributions may be made by active members to fund an additional, optional annuity benefit.
Defined benefits are based on years of service and the employee's final average compensation, which is
calculated using the highest consecutive 48 months of the last 120 months of service before retirement.
19
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
Red Cross funding policy is to set the employer contribution rate at a percentage of covered payroll that
is intended to fund toward a target range of not less than 105 percent and no more than 115 percent of
the projected unit credit accrued liability. To the extent that the current funding is more or less than the
target's upper bound of 115 percent, the difference is amortized over ten years in calculating the
contribution rate . During fiscal years 2004 and 2003, the Organization contributed 2 percent and
1 percent, respectively, of covered payroll to the Retirement System.
The Organization has investment guidelines for Plan assets . The overall objective of the guidelines is to
ensure the Plan assets provide capital growth over an extended period of time, while also considering
market risks and ensuring that the portfolio income and liquidity are appropriate to meet the Plan benefit
payments and other expenses . The Plan investments are required to be diversified by asset class and
within each asset class, in order to ensure that no single investment will have a disproportionate impact
on the total portfolio. The Plan asset allocation is reviewed each year with current market assumptions
to ensure the asset mix will achieve the long-term goals of the Plan . The Plan assets were invested in
the following categories at June 30, 2004 and 2003 :
Pension Assets
2004
2003
Cash and short-term investments
Domestic equity
International equity
Fixed income deflation hedge
Inflation hedge
Marketable and nonmarketable alternative funds
1%
49%
19%
18%
7%
6%
100%
2%
55%
15%
16%
7%
S%
100%
The Plan assets were within authorized asset allocation ranges at June 30, 2004 and 2003 .
The Organization also provides medical and dental benefits to eligible retirees and their eligible
dependents . Generally, retirees and the Organization each pay a portion of the premium costs. The
medical and dental plans pay a stated percentage of expenses reduced by deductibles and other
coverages. The Organization has the right to modify cost-sharing provisions at any time . In addition,
life insurance benefits of $5,000 are provided with no contributions required from the retirees .
The American Red Cross postretirement benefit plans are unfunded. However, as discussed in Note 6,
the Board of Governors has designated $105 million of unrestricted net assets to fund a portion of
premiums for retirees' postretirement medical benefits .
20
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
The following table presents the changes in benefit obligations, changes in Plan assets, and the
composition of accrued benefit costs in the consolidated statements of financial position for the years
ended June 30, 2004 and 2003 (in thousands) :
Pension benefits
Postretirement beneCts
2004
2003
2004
2003
Changes in benefit obligations
Benefit obligations at beginning of year
Service cost
Interest cost
Plan participants' contributions
Actuarial (gain) loss
Benefits paid
$
1,336,555 $
73,062
83,517
6,923
(46,074)
(35,954)
1,058,689
64,294
80,921
6,773
157,012
(31,134)
$
181,189 $
14,333
10,661
(14,971)
(6,152)
104,826
5,936
7,466
68,788
(5,827)
Benefit obligations at end of year
$
1,418,029
$
1,336,555
$
185,060
$
181,189
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Plan participants' contributions
Benefits paid
$
1,041,600 $
197,345
20,362
6,923
(35,954)
999,197
56,958
9,806
6,773
(31,134)
$
-
$
-
Fair value of plan assets at end of year
$
1,230,276
1,041,600
$
-
$
-
Changes in plan assets
$
Accrued benefit costs
Funded status
Unrecognized net actuarial loss
Unrecognized prior service cost
Additional minimum liability
$
Accrued benefit costs
$
(187,753) $
98,836
12,638
76,279
$
(294,955) $ (185,060) $ (181,189)
241,032
9,486
24,868
15,632
12,088
13,778
(69,735)
1002s$
163,486) $
14
The provisions of FASB Statement No. 87, Employers' Accounting for Pensions, require recognition of
an additional minimum liability, if the accrued benefit costs for a pension plan are less than the excess of
the accumulated benefit obligation over plan assets . At June 30, 2003, an additional minimum liability
of approximately $70 million was reflected in the consolidated statement of financial position. At
June 30, 2003, the liability exceeded the unrecognized prior service cost resulting in a minimum pension
liability adjustment of approximately $54 million, recorded as a non-operating loss on the consolidated
statement of activities . At June 30, 2004, the value of Plan assets was sufficient such that no additional
minimum liability was required, and the effects of the prior year adjustment were reversed, resulting in a
minimum pension liability adjustment of approximately $54 million, recorded as a non-operating gain
on the consolidated statement of activities .
The accumulated benefit obligation for the pension plan was approximately $1,233 million and
$1,150 million as of June 30, 2004 and 2003, respectively.
21
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
Significant assumptions used in accounting for the plans as of June 30, 2004 and 2003 were :
Pension Benefits
2004
2003
Discount rate
Expected return on plan assets
Rate of compensation increase
6.25%
7.50%
5.00%
Postretirement Benefits
2004
2003
6.00%
8.25%
5.00%
6.25%
6.00%
The expected rate of return assumption on Plan assets was determined by considering current economic
and market conditions and by reviewing asset class allocations, historical return analysis and forward
looking capital market expectations . Asset class allocations were established by considering each class'
risk premium commensurate for the level of risk, duration that matches the Plan's liabilities, and
incremental diversification benefits . Historical returns and forward looking capital market expectations
were gathered from, and compared among the Plan's investment managers, and a sampling of the
consultant community.
For measurement purposes, a 9.1 percent annual rate of increase in the per capita cost of covered health
care benefits was assumed for fiscal year 2004 . The rate was assumed to decrease gradually to 5.5
percent for 2009 and remain at that level thereafter .
The components of net periodic benefit cost for the years ended June 30, 2004 and 2003 were (in
thousands) :
Pension benefits
2004
2003
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognition of actuarial gain
Net periodic benefit cost
$
73,062 $
83,517
(101,223)
2,994
-
$
58,350
Postretirement benefits
2004
2003
64,294 $
80,921
(99,243)
3,915
(5,214)
$
44,673
$
5,936
7,466
1,690
(2,264)
27,095
$
12,828
$
14,333
10,661
1,690
411
Assumed health care cost trend rates have a significant effect on the amounts reported for the health
care plans . A one-percentage point change in assumed health care cost trend rates would have the
following effects (in thousands):
Point increase
Point decrease
Effect on total of service and interest cost components
Effect on postretirement benefit obligation
22
$
570
2,631
$
(450)
(2,594)
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
The Organization expects to contribute approximately $51 million to its pension plan and $6 million to
its postretirement benefit plan during the year ended June 30, 2005 .
The following benefit payments, which reflect expected future service, as appropriate, are expected to be
paid, as of June 30, 2004 (in thousands):
Pension
Benefits
2005
2006
2007
2008
2009
2010-2014
Postretirement
Benefits
$
40,314
45,866
52,228
59,212
66,998
468,820
$
5,957
6,315
6,712
7,199
7,813
52,313
$
733,438
$
86,309
American Red Cross Savings Plan - 401(k) Plan :
The Organization participates in the American
Red Cross Savings Plan, (the Savings Plan), a defined contribution plan . Employees of the American
Red Cross, including participating chapters, are eligible to participate upon hire and are vested 100
percent in all contributions to the Savings Plan . The American Red Cross matches 50 cents for every
dollar up to the first 4 percent of annual compensation contributed by the participant. For the 2003
calendar year, contribution limits were based on a maximum annual compensation of $200,000 . There
are eleven investment options that an employee can choose from as well as a self-managed brokerage
account. The Organization contributed approximately $12 million and $11 million to the Savings Plan
for fiscal years 2004 and 2003, respectively.
(12) Joint Costs
For the year ended June 30, 2004, the Organization incurred joint costs of approximately $2.2 million
for informational materials and activities that included fund raising appeals . Of those costs,
$1 .1 million was allocated to fund raising, $0.5 million to health and safety services, $0.3 million to
disaster services, and $0.3 million to other services.
23
(Continued)
THE AMERICAN RED CROSS
Notes to Consolidated Financial Statements
June 30, 2004
(With summarized information for the year ended June 30, 2003)
(13) Commitments and Contingencies
Litigation :
The Organization is a defendant in a number of lawsuits incidental to its operations . In
the opinion of management, the outcome of such lawsuits will not have a materially adverse effect on
the Organization's financial position or its activities .
Consent Decree :
In April 2003, the American Red Cross signed an amended consent decree (the
Decree) with the United States Food and Drug Administration (FDA) affecting Biomedical Services and
its blood services regional operations . The Decree requires compliance with specific standards on how
the Red Cross will manage and monitor its Biomedical Services' operations and formalized
management of compliance related issues and provides timelines for their resolution . The Decree
subjects the Red Cross to potential monetary penalties if it fails to meet the compliance standards. The
compliance penalty provisions cover two general areas: (1) penalties for violations of the law, including
FDA regulation ; and (2) penalties for the release of unsuitable blood products . Potential penalty
amounts are limited to one percent of gross annual revenues generated by Biomedical Services for
products and services in the first year (April 15, 2003 through April 14, 2004) of the Decree . The limit
is increased to two percent in the second year, three percent in the third year, and four percent starting in
the fourth year and annually thereafter . It is the opinion of management that the financial statements
adequately provide for potential penalties resulting from the Consent Decree .
(14) Risks and Uncertainties
The Organization's invested assets consist of common stocks, fixed income securities and other
investment securities . Investment securities are exposed to various risks, such as interest rate, market
and credit . Due to the level of uncertainty related to changes in interest rates, market volatility and
credit risks, it is at least reasonably possible that changes in these risks could materially affect the fair
value of investments reported in the statement of financial position as of June 30, 2004 . However, the
diversification of the Organization's invested assets among these various asset classes should mitigate
the impact of any dramatic change on any one asset class.
(15) Subsequent Events
In September 2004, the Organization entered into an agreement to transfer and convey substantially all
of its inventory and fixed assets and certain specified liabilities of the tissue products line of business in
exchange for approximately $22 million in cash. The Organization will retain the majority of the
receivables and payables as of the closing date, which is expected to be December 2004 . The
Organization expects to record a gain on the transfer of these assets of approximately $10 million in
fiscal year 2005 .
In September 2004, the American Red Cross Greater New York chapter sold the land and the building
of its main offices . The sales price was approximately $72 million and the net book value of the land
and building was approximately $2 million as of June 30, 2004, resulting in a gain of approximately $70
million, which will be recorded in fiscal year 2005.
24
.Form
$$6$
(December 2000)
Department of the Treasury
Application for Extension of Time To File an
Exempt Organization Return
OMB No . 1545-1709
" File a separate application for each return .
Internal Revenue Service
~ If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box .
~ If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II (on page 2 of this form).
Note: Do not complete Part 11 unless you have already been granted an automatic 3-month extension on a previously filed
Form 8868.
Automatic 3-Month Extension of Time-Only submit original (no copies needed)
Note: Form 990-T corporations requesting an automatic 6-month extension-check this box and complete Part 1 only . . . " 0
All other corporations including Form 990-C filers) must use Form 7004 to request an extension of lime to file income tax
returns. Partnerships, REMICs and trusts must use Form 8736 to request an extension of time to file Form 7065, 1066, or 7047 .
Name of Exempt Organization
Employer identification number
Type Or
American National Red Cross and Its Constituent Chapters and Branches
print
53 : 0196605
File b the
Number, street, and room or suite no . If a P .O . box, see instructions .
due ate for
17th and D Streets, N .W .
filing your
return . See
City'
town or post office, state, and ZIP code. For a foreign address, see instructions .
instructions
Washington, DC 20006
Check type of return to be filed (file
Form 990
Form 990-BL
Form 990-EZ
0 Form 990-PF
a separate application for each return):
0 Form 990-T (corporation)
El Form 990-T (sec . 401(a) or 408(a) trust)
D Form 990-T (trust other than above)
~ Form 4720
D Form 5227
[7 Form 6069
D Form 8870
El Form 1041-A
~ If the organization does not have an once or place of business m the United States, check this box , , ,
0
~ If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN)
. If this is
for the whole group, check this box " F] . If it is for part of the group, check this box " E] and attach a list with the
names and EINs of all members the extension will cover.
1
I request an automatic 3-month (6-month, for 990-T corporation) extension of time until February_15------- , 2005,
to file the exempt organization return for the organization named above . The extension is for the organization's return for :
" O calendar year 20 . . . or
0 tax year beginning July 1
2
. .__ .__. ._______ . . , 20 .- and ending .June.30
. .. .. .. .. . .. .. .. . . . .. .. . . . .. .. . , 20 04.
If this tax year is for less than 12 months, check reason : D Initial return
D Final return Cl Change in accounting period
3a If this application is for Form 990-BL, 990-PF 990-T, 4720, or 6069, enter the tentative tax, less any
nonrefundable credits . See instructions . . . . . . . . . . . .
b If this application is for Form 990-PF or 990-T, enter any refundable credits and estimated tax payments
made . Include any prior year overpayment allowed as a credit
. . . .
c Balance Due. Subtract line 3b from line 3a . Include your payment with this form, or, if required, deposit
with FTD coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System). See
instructions
Signature and Verification
$
Under penalties of penury, I declare that 1 have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief,
it is true. correct, and complete, and that I am authorized to prepare this form.
Tide " Chief Financial Officer
For Paperwork Reduction Act Notice, see Instruction
Cat. No 27916D
Dace s
g ( Zy /& 11
Fog 8868 (12-2000)