How is the American Red Cross Funded?

As we discussed in a previous blog, one of the charities GreenDrop supports is the American Red Cross. When we pick up, or you drop off, your donations for the Red Cross, we take those items and turn them into a monetary donation. These monetary donations constitute just one of the many ways the organization thrives. To learn more about how the American Red Cross is funded, read on!

How It Works

To begin, it’s important to understand the structure of the American Red Cross. When it comes to numbers, the nation’s Red Cross includes 769 regional or city-based chapters. Each chapter is looked over and chartered by the national Board of Governors, and they help decide who the directors for each chapter.

Chapter directors have some control in determining which programs and services their specific area need the most. The money these chapters obtain is trickled down from the national level. Now, it’s important to note that the government does not fund the Red Cross. When we say the money chapters receive is from the national level, we refer to the organization itself, not the government as a whole.

Where the American Red Cross Gets Money

Although the Red Cross is not funded by the government, that doesn’t mean the organization will not receive government money in certain events. During a natural disaster, such as Hurricane Katrina, the government contracted the Red Cross to carry out some aspect of the government’s relief efforts. Apart from monetary donations from the government, the Red Cross does not get funded by it.

Instead, the American Red Cross’ budget comes mostly from donations that companies, organizations, universities, and individuals make, and cost-recovery fees can be charged for some services. The American Red Cross is a non-profit, charitable organization, which means it gets the sum of its money to operate through donations from others.

When you donate to GreenDrop, we turn that into a monetary donation to help the Red Cross continue to provide aid for others. When celebrities donate to the them, that money goes to help the organization continue. When you donate blood at a Red Cross donation center, the blood is sold for money to help them continue. All these things work like a machine to keep this courageous organization afloat.