THE AMERICAN RED CROSS.
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Discusses the private, nonprofit organization.... More...
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Paper Abstract: Discusses the private, nonprofit organization. Founding and history of the organization. Its reputation as a humanitarian organization dedicated to assiting victims of natural and man-made disasters. The Red Cross' variety of services. Use of volunteers. Financial analysis. Donors. The organization's conflicts and internal operations. Response to 9/11. Outline.
Paper Introduction: Table of Contents
Introduction 2
History 2
Services 4
Volunteers 6
Financial Analysis 7
Donors 8
Analysis 10
Conclusion 11
References 13
Text of the Paper:
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IT at ground zero. (2 1, October 8). Internet address:http://www.redcross.org/services/nursing/. (2 1). The American Red Cross.Internet address: http://www.redcross.org/services/hss/. One of the greatest challenges that has faced the American Red Crosssince its inception is that of defining its mission and conveying thatmission to the public. However, the Red Cross continues to dependprimarily on contributions and revenues from the sale of its products andservices for the bulk of its income. Despite these challenges, however, the Red Crosscontinues to be the primary central source for blood and plasma in theUnited States, and it continues to attract sizeable donations both fromcorporations and private individuals. This isdone through the organization's International Services section, and focuseson emergency disaster response as well as on providing primary health careas needed. The IT available atGround Zero came from a variety of corporate sources, including Dell,Compaq and Cisco Systems (Goff, 2 1). The organization has ben accused of notworking closely enough with other relief organizations in coordinatingefforts, and there are those who question whether the funds provided to theorganization reach their intended use. Corporate donations are likely to remain strong, andindividuals are likely to continue to donate their time, resources, andeven blood, to the Red Cross cause. Red Cross volunteers are often among the first to respond todisasters, and the Red Cross has played a central role in assisting thevictims of September 11. However, the Red Cross has also come under increased scrutinyregarding its internal operations. Goff, L. Community services. This research considers thehistory of the American Red Cross, its organizational mission, the servicesthat it provides, sources of funding, its volunteer network, and theoutlook for the organization. Youth services are provided primarily through the Junior Red Cross,which was organized in 1917 and which has a close relationship with itsparent organization. The American RedCross was formed in 1881 and came into existence in large part due to theefforts of Clara Barton. In addition, thenursing staff is a critical element in the Blood Services aspect of the RedCross (operated through the Health and Safety section) ("Nursing," 2 1). History The Red Cross organization was founded in 1863 in Geneva, Switzerlandspecifically to provide assistance to the sick and wounded during times ofwar. Donors The Red Cross attracts millions of donors each year because of itshigh profile and its reputation for providing relief assistance.Individuals and corporations both donate significant amounts to theorganization, and volunteers donate their time and often other resource, aswell. In the immediate wake of a disaster, local Red Cross chapters oftenencourage would-be volunteers to make appointments and "wait and see" wherethe need will ultimately be greatest. Each of these service areas focuses on the well-beingof individuals, and supports the organization's overall goals of providingrelief and assistance without cost to those in need. The youth services work within each of the otherservices of the Red Cross, providing support and assistance after receivingappropriate training. Internetaddress: http://www.redcross.org/more/commserv/. When the perceived need isless, contributions by the public tend to decline. AT&T also sponsors a corporate blood drive("Sponsors," 2 1). (2 1). (2 1). The armed forces emergency service focus on providing emergencycommunications services to active duty military personnel and theirfamilies, as well as assistance to military personnel and their dependentswho need financial assistance or assistance in obtaining military benefits. Still, evencorporate donations can fluctuate with the economy (poor economicperformance results in lower charitable contributions) and companies whomay not have donated in the past do so during and immediately following anextreme crisis ("Annual Report," 2 1). Although the organization proved that it could functioneffectively during wartime, the Red Cross faced new challenges as apeacetime organization. Boardman and the Reorganization of the American Red Cross.(2 1). Youths are particularly active in the health andsafety services section of the Red Cross with high levels of youthparticipation both as students and instructors of classes for young people. Pre-19 . Internet address:http://www.redcross.org/news/ds/ 1 9wtc/donationwork/myths.html. (2 1, October 26). The American Red Cross. Internetaddress: http://www.redcross.org/services/intl/. These volunteers assist disaster victims, work with the bloodservices groups, perform administrative tasks, work with internationalrelief agencies, and instruct their neighbors through local Red Crosschapter educational programs ("Volunteers," 2 1). Originally formed to assist those injured in wartime, today's Red Crossprovides relief efforts to a variety of individuals in a variety ofsituations. Myths and facts. Financial Analysis In 2 , 29 percent of the organization's $2.517 billion revenues(totaling $738 million) came from contributions. Internet address:http://www.redcross.org/museum/19 1919a.html. Donations to the American Red Cross, unless specifiedotherwise, can be used to fund operations within the United States, orabroad. Internet address:http://www.redcross.org/museum/192 1939.html. Farley, M. Swimming and lifeguardingclasses have long been a mainstay in many communities, and the organizationprovided training to more than 12 million individuals during 2 ("Healthand Safety," 2 1). Catastrophic events inevitably bring additional donations and sponsorsto the Red Cross. Internalconflict and changes in the political environment have contributed to thechanges that the organization has seen, and continue to plague theorganization today. During years of significantnatural disasters, war or when local communities are the recipients of RedCross aid, contributions tend to increase. AT&T also conductsan employee contribution campaign, and matches donations until a $3 , threshold is reached. An additional $185 million (eight percent of revenues) was received in2 from the organization's investments. Insome areas, the Red Cross offers home-delivered meals and operates foodpantries, while in other areas, the organization operates homelessshelters. (2 1). Mabel T. Internet address:http://www.redcross.org/museum/pre19 .html. Nursing has long been a key part of the Red Cross, and it continues tobe a cornerstone of the organization today. In addition to its other international functions, the Red Crossprovides assistance and relief to prisoners of war and victims of militaryconflicts even when war has not been declared ("International," 2 1). TheRed Cross has been criticized for not sharing its data with other nationalorganizations and even local agencies providing relief efforts in New York,but the agency responds that it seeks both to balance the needs of allproviders with the privacy needs of its clients. Morethan 97 percent of the organization's human resources are nonpaidvolunteers. During 2 1, the Lilly Endowment donated $1 million to the RedCross, while Coca-Cola donated $6 million. Washington, DC: TheAmerican Red Cross. Some of those whoinitially volunteer eventually lose interest after the immediate shock ofthe event has passed, but many remain with the organization for the long-term. Local companies play key role in savinglives. (2 1). Silicon Valley/San Jose Business Journal, p. Corporate donationstend to remain more predictable since many companies consider theircharitable donations part of their corporate tax strategy. The organization's head announced that she would be leaving theorganization at the end of 2 1, and some observers have questioned whetherthe Red Cross is upholding its mission. Malchow, A. The close relationship between the Red Crossand the government was made clear in this charter, and reinforced in 1911when President Taft was called the "only volunteer society now authorizedby this government to render aid to its...forces in times of war" ("MabelT," 2 1). The American Red Cross. 55. (2 1). The Boeing Company donates $1.75 million to the Red Crossas well as $826, from employee community funds. The American Red Cross rapidly created areputation for itself as a humanitarian organization. Certainly questions arose after theattacks of September 11 when there was the impression given by the RedCross that donations intended for victim assistance would be used as theRed Cross deemed fit, and not necessarily for victims of the actualattacks; this was later retracted by the Red Cross, but caused asignificant public relations problem for the organization ("Myths," 2 1). This area of the Red Cross also provides referrals to counseling services,and provides the communications services necessary for deployed militarypersonnel to remain in contact with their families ("Armed Forces," 2 1).The health and safety service focuses on providing first aid education andrelated information to the general public. Recognizing that much of the organization's strengths duringwar (including its rapid response time and its medically trained personnel)could be transferred to other environments, the organization began to focusattention on disasters, both natural and manmade. Youth services. The organization's mission and vision changed significantly afterWorld War I. Traditional Red Crossemergency services are provided at no cost to victims, but many of theorganization's services are provided on a fee-basis. Contributions varysignificantly from year to year based on the publicity surrounding the RedCross efforts during the previous year. The number of volunteers dropped dramaticallyfollowing the war, and the chairman of the Red Cross sought to change theorganization into one that would provide service to the public evenpeacetime. Analysis The American Red Cross has undergone several reorganizations andshifts in its mission as it has evolved in the last 15 years. International services. More than 4 , nurses workin both paid and unpaid capacities in today's Red Cross providing directservices as well as serving as instructors and educators. Although this can frustrateindividuals who desperately want to "do something," the end result is thatvolunteers are matched to positions which suit their talents and abilities,and the organizations are better able to manage the volunteer effort(Malchow, 2 1). If the Red Cross were able to attract additional donations, it couldcontinue to build its services both in the United States and abroad.Certainly local chapters have pressing needs within their communities thatcould be served by the Red Cross, which is increasingly focusing onproviding local assistance on a regular basis as well as occasionalassistance on an emergency basis (Farley, 2 1). Armed forces emergency services. References 192 -1939. 52. Services Today, the American Red Cross offers services in seven key areas:armed forces emergency services, health and safety services, internationalservices, community services, youth services, nursing services andvolunteer services. The events of September 11 increased significantly the number ofindividuals interested in volunteering with the Red Cross as well as withother relief organizations. The American Red Cross. St. Sudden influx of volunteers presentschallenges to nonprofits. World War I, however, changed the way that theorganization was run as well as the public's perception. As an example,students pay for the courses that are taught through the Red Cross,although the goal is to keep the fees reasonable so that the cost ofmaterials are covered, but also so that students do not face a financialhardship in order to participate. Internet address:http://www.redcross.org/services/youth/. Individual chapters determine how toallocate their resources based on the needs of the local community. Table of Contents Introduction 2 History 2 Services 4 Volunteers 6 Financial Analysis 7 Donors 8 Analysis 1 Conclusion 11 References 13 Introduction The American Red Cross is part of a much larger organization, theInternational Red Cross, dedicated to assisting victims of naturaldisasters, wars, and rendering additional assistance-such as collecting anddistributing blood and plasma-during non-crisis periods. On an international level, the American Red Cross works with other RedCross and Red Crescent organizations to provide relief assistance. Many of the fees collected come from theorganization's blood services. (2 1). The Red Cross has a substantialendowment fund (as well as a reserve fund) which is invested to provideincome for the organization. However, the agency's history has been marred byinternal conflict and struggle, and the chairman announced her resignationin the wake of September 11 and harsh criticism of the Red Cross response.The Red Cross continues to attract supporters despite this criticism, andis likely to work with its new chairman to overcome the negative publicitygenerated so far. Nursing. The Red Cross was incorporated by Congress in 19 ; under terms of theincorporation, the organization was subject to Congressional oversight (thenonprofit organization had to submit an annual financial report toCongress), but Congress was not specifically authorized to audit theorganization's accounts. The Red Cross screens much of the nation'sblood supply for a variety of infectious diseases, and charges for thisservice. Computerworld, p.48. Louis Business Journal, p. Internetaddress: http://www.redcross.org/services/volunteer/. The American Red Cross. The Red Cross has also adapted its services to fitthe changing economic and political climate, with the result that the RedCross today, while recognizable to its founders, offers many more servicesin many more countries than its founders could have imagined. Volunteers The last organizational area of the American Red Cross is that ofvolunteer services. The American Red Cross. (2 1). Internet address:http://www.redcross.org/sponsors/corporatelist.html. Health and safety services. The American Red Cross. (2 1). Many of the youths who complete lifeguard training, for example, go on tobecome lifeguards within their communities ("Youth," 2 1). In 19 5, amid continued internal conflict, the organizationwas reorganized yet again. Although such organizations actively recruitvolunteers at all times, they can be inundated with requests for volunteeropportunities immediately following a catastrophe. The AT&T Foundation also donated phone cards (estimated at$2.3 million) as well as a cash donation of $1 million. Payroll deductionsthrough the Boeing Company amounted to more than $74 , for the RedCross, and Boeing matches individual employee donations on a dollar-for-dollar basis. The organization also has a highly visible presence within the UnitedStates through its regional chapters. Stamping out tuberculosis. The American Red Cross. In addition, the Red Cross continuesto educate the public about safety and health issues, and offers assistanceboth domestically and abroad when there are emergency relief situations. The American Red Cross. The Geneva Convention Treaty was signed in 1864, which recognized theRed Cross as a noncombatant and established the rules regarding the conductof the Red Cross during times of war ("Pre-19 ," 2 1). Conclusion The American Red Cross is a key component of the nation's privaterelief efforts, and relies on donations of time and money for its survival. The American Red Cross. (2 1). Dynegy donated 55, callingcards (used in the military services section) with an estimated worth of$5.5 million, and Gannett Publishing provides in-kind donations estimatedat $4 million (including running Red Cross ads in their printpublications). Sponsors. An additional 63 percent ($1.594 billion) of the 2 revenues camefrom the organization's products and services. During the first World War, the American Red Cross was run bythe War Council, a presidentially appointed committee. (2 1, March 2). After September 11, the New York chapter of the RedCross accepted donations of information technology equipment that itinstalled at Ground Zero to assist in recovery efforts. Most of those who volunteer with the Red Cross do so at thelocal level and through their local chapters ("Community," 2 1). The Red Cross also charges recipients for its other bloodproducts, including plasma and platelets ("Annual Report," 2 1). The Red Cross andother relief agencies use IT services to build client databases and trackclient information (as well as other data related to specific events). (2 1). This section coordinates the efforts of hundreds ofthousands of volunteers on a local, national and international level. This charter also prevented other organizationsfrom being formed which used the red cross as their symbol or as part oftheir name. The American Red Cross. However, theorganization was plagued by internal conflict, and Clara Bartron resignedin the early 19 s. The American Red Cross.Internet address: http://www.redcross.org/services/afes/. In the wake ofSeptember 11, the American Red Cross has come under increased scrutinyregarding the way in which it handles financial donations and conducts itsservices. American Red Cross 2 Annual Report. J. The American Red Cross. The organizationresponded to floods, droughts, industrial accidents (including the GreatTriangle Fire) and provided assistance to ordinary citizens during theGreat Depression ("192 -1939," 2 1). (2 1). Internetaddress: http://www.redcross.org/museum/tour/page_ .html. (2 1). At the time, regional Red Cross organizations wereunable to coordinate their efforts with the national office, and there wasa lack of consistency in the services that were offered from one geographicregion to the next. The agency has faced severe criticism in the past,and has been able to recover through reorganizing its efforts and focusingon its core strengths. Volunteer services.
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