Red Cross A non-profit organization (2023)

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The International Red Cross is a non-profit organization known for its emergency-based planning, governance and management. Because the organization does not sell any products or services for a profit, it must comprehensively manage budgeting to deal with crisis and emergency situations like Hurricane Sandy. (Allen, 2011)

Current events around the world have a more dynamic impact on nonprofit organizations. For example, the Red Cross is an international disaster management organization. It has to reach areas where there are problems. As Alan (2011) has pointed out, non-profit organizations involved in disaster management today need to be more active and dynamic. Sometimes they have to deal with one disaster in Taiwan and the other in America. A few other projects in Africa and other undeveloped regions remain active throughout the year.

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(Video) How the Red Cross Profits From Fake Aid

Impact of Hurricane Sandy on the Red Cross

The Red Cross dealt directly with Hurricane Sandy in 2012. The Red Cross took action by announcing 4,000 workers for the hurricane disaster. They worked in damaged and devastated areas with thousands of volunteers. The NY Times (2012) cited the Red Cross as the most active non-profit organization working to develop the regions in the wake of Hurricane Sandy. In addition to dispatching disaster relief workers for disaster management, the Red Cross also raised approximately $23 million for this particular hurricane.

The following report discusses various aspects of the Red Cross relating to planning, programming, budgeting, performance measurement and managerial control.

Administration of the Red Cross

The Red Cross has properly evolved as an organization with an effective change management strategy to be effective in their disaster management work around the world. Under “What we do” on the website, it can be seen that the organization appears to follow a decentralized organizational structure with its international offices and branches around the world.

For the Hurricane Sandy program, the Red Cross (2012) began work immediately after various agencies became aware of the threat of the hurricane. The organization started the planning phase in order to manage it successfully.


Planning is not the same in for-profit and non-profit organizations. Peters and Pierre (2012) have mentioned that the strategic planning of a for-profit organization is based on higher sales, market growth, higher target markets, revenue and hence net profits. You said that the strategic planning of a non-profit organization is based on greater benefit to society. The Red Cross has a similar type of planning in which they take care of society, especially against sudden disasters like Hurricane Sandy,

The Red Cross plans in accordance with its organization's mission and vision. The mission and principle of the Red Cross is to serve humanity whenever it is in trouble. The Red Cross cannot take on a project or program that is not related to its program. The Red Cross cannot help brokers who are experiencing financial difficulties due to the current recession in America as it is not in line with their mission and vision.

According to the Red Cross website, the organization plans after disasters and constant hunger and poverty. The planning takes place according to need. For example, when Hurricane Sandy was predicted, the Red Cross used all of its efforts and American resources to work on behalf of the people who might be affected by the hurricane.


Bryson (2011) has done extensive research on public and non-profit organizations in their planning and programming arrangements. He said nonprofits plan and program with their mission and vision. You cannot program against their values. Strategic planning and programming should also be aligned. Senior management and the board of directors provide direction and approval for various programs. Conduct planning and programming with team-based activities. Potential customers are involved in the planning and initial programming in order to establish contacts for fundraising and donations.

The programming in the Red Cross follows the studies of Bryson (2011). They plan and work within their defined domains. It can be seen in the Hurricane Sandy Program by Red Cross (2012) that the Red Cross planned this before the problem actually started. The potential disaster was approved by the board because it aligned with their mission and vision. Programming has its value around the world in both for-profit and non-profit organizations. It is a way of managing all aspects of an organization.


Funding for the Red Cross relies on fundraising and donations from the public and private sectors. The majority of non-profit organizations working for the good of mankind are based on donations to meet financial needs. Red Cross (2012) was able to raise $23 million for Hurricane Sandy disaster management through celebrities.

(Video) American Red Cross Explained in 3 minutes | World's Top Charities | What is the American Red Cross?

By budgeting non-profit organizations involved in humanitarian and disaster management work, financial resources can be raised as needed. For example, when Hurricane Sandy hit America, people began donating more than usual to the Red Cross. Similarly, other disaster management organizations have more opportunities to raise financial resources. (Weerawardenaa, McDonaldb & Mort, 2010)

Weerawardenaa, McDonaldb and Mort (2010) have further said that the nonprofit organizations that have proven to be effective and efficient in social work have a greater potential to generate financial resources. In America's current financial scenario, the whole country is in financial crisis due to higher inflation rate, higher unemployment and few business opportunities. Such current scenarios have limited some of the financial resources for the nonprofit organizations.

According to Vermeer, Raghunandan, and Forgione (2009), nonprofit organizations continue to play a large part in America's economy today. Some corruption and scandal issues have caused problems for the nonprofit industry, but they still have a unique impact. For example, when it comes to natural disasters, people turn to volunteer organizations. Organizations that have made a name for themselves enjoy more trust.

Performance measurement and management control

The Red Cross has developed a performance measurement strategy to assess their performance. In July 2004 they launched the "Performance Standards" chapter. On the Red Cross site ( the organization has mentioned its Strategy 2015 which focuses on performance measurement and governance management.

Achieving goals has been made mandatory at the Red Cross, where the organization must follow them. Performance is measured by managers to make improvements and take corrective actions. Performance is held accountable to stakeholders at the organizational level. Past and current organizational renewal projects are also analyzed for better future programs. Training and development will be part of the programs. (RedCross, Working as One – Strategy 2015, 2013)

Ridder and McCandless (2010) have focused on the human resource management of non-profit organizations such as the Red Cross. The authors agree that none of the nonprofit organizations can ignore the importance of human resource management in their programs. You must provide appropriate hiring, training, development, compensation and performance management programs. Human resource management plays a strategic role in an organization that cannot be ignored.

Evaluation of different programs should be done when a particular phase or the whole program is completed. For example, the Red Cross should have a full assessment and reporting on the Hurricane Sandy project. It will help them to know their weaknesses and strengths. The evaluation helps them to take corrective action in the future and to improve themselves.

Human resources management should focus on areas such as personnel costs, salaries, training, space, travel, development, hierarchy, structure, etc. It should be effective in allocating staff and volunteers to different programs. For example, for the Hurricane Sandy program, they can only use those volunteers who have high stamina and more willpower to fight against natural disasters.

Management in non-profit organizations

The management of a non-profit organization must have the same importance as in a for-profit organization. Finance, accounting, human resource management, strategic management, planning, control, training and development, performance management, assessment, corrective action, and all other business and managerial practices have a similar importance and impact on nonprofit organizations today.

Management of all kinds should be given appropriate space and focus in nonprofit organizations. A research showed that out of 229 non-profit organizations based on charities (such as the Red Cross), it was found that higher level non-profit organizations operating in accordance with modern business practices, technology and business strategy were able to achieve higher results. It also showed that such organizations with successful planning and implementation of various programs focused on strategic human resource management. (Guo, Brown, Ashcraft, Yoshioka, and Dong, 2011)

(Video) Nonprofit American Red Cross

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Red Cross and Hurricane Sandy

Through the Hurricane Sandy program, the Red Cross has published reports and online material demonstrating its fight against the natural disaster. With the planning and organization of the Red Cross, the organization was able to provide 1,400 evacuation centers for around 450,000 evacuees. More than 68 million meals have been provided to affected people. 1.4 million families were helped with basic needs such as food, groceries, clothing, etc. (RedCross, Hurricane Recovery Program, 2012)

The Red Cross has a positive image of showing teamwork and the idea of ​​being together in society. This is a marketing tactic also used by various for-profit organizations to show their togetherness approach. For example, Nokia "Connecting People" is a way for the company to show integration into the market and society. Similarly, the Red Cross has shared an image of being with the victims of Hurricane Sandy. They stood by the people and helped them regain their normal lives.

Emotional behavior is another tactic used by companies through advertising to attract the target market. The Red Cross also used emotional behavior to attract donations and financial resources to administer its Hurricane Sandy program. They were so effective in their emotional appeal and marketing that around 200,000 people volunteered to participate in the Hurricane Sandy program. The Red Cross's Hurricane Sandy program was successful, providing approximately $110 million in aid to victims. Red Cross management proved successful in fighting the disaster. (RedCross, Hurricane Recovery Program, 2012)

Current management control in a non-profit organization

The modern and current management control in profit and non-profit organizations has changed significantly. As the Red Cross operates in situations where risk and sudden management control requirements may arise, appropriate action must be taken. Power (2011) has mentioned “risk management” for situations where current organizations have to face sudden dynamic changes in the external environment.

Current management control in the modern world is also related to information technology. In order to keep up to date with the external environment, risk management and modern aspects of business, management control of various organizations must remain active with information technology in today's world. Information technology helps organizations to be efficient not only within the organization but also in the outside world, industry and the international market. (Li, Peters, Richardson and Watson, 2012)

(Video) The American Red Cross: Life-Saving Work Using Digital Experiences

In the modern business world of for-profit and non-profit organizations, performance management is another important aspect associated with risk management and information technology. The current management does not follow the typical or classic way of the old days where the number of production of a work was seen or calculated.

Organizations today see their employees as both individual employees and team/group colleagues. Individual performance is now measured in both tangible and intangible terms. Behavior, ethics, manner of communication, work itself, production, teamwork and other related aspects are part of performance measurement and management. Such modern management control practices have completely changed management practices. (Dyck & Neubert, 2008)

Recent events that have shaped and changed management control and performance management practices are international business expansion, the world turning into a global village, globalization, the whole world into a financial crisis, the interdependence of different industries on each other, etc. All these events hang together other today. Today the world is more connected. If a tsunami hits any part of the world, thousands of international companies and NGOs will join forces to save humanity.


For any program in a nonprofit organization like the Red Cross, it starts with planning. Planning is critical for both for-profit and non-profit organizations. The Red Cross was aware that Hurricane Sandy was coming and its consequences could be seriously devastating for many families. From the beginning, the organization began planning its program initiatives and marketing strategies to generate donations and charities.

Hurricane Sandy's program was properly defined with goals and mission. Thousands of volunteers have been registered and trained to help affected societies. During and after the program, donations were made to help victims and corrective actions were taken to be more effective in future programs.

Budgeting was done by the organization through donations. $110 was raised and spent on various subprograms under the Hurricane Sandy program. Management teams have also implemented performance measurement programs so that they can be demonstrated to stakeholders and corrective action can be taken in future programs.

It is important to see the leadership similarities between for-profit and non-profit organizations. There are many differences in terms of sales, revenue generation, target marketing, etc.; but internally there is an almost similar style of management, decision making, planning, hiring, training and development, performance measurement and evaluation.

A nonprofit organization also has a mission and vision that guides it for its ventures and programs. The Red Cross has a mission to serve humanity that was in alignment with Hurricane Sandy and so they took an active part in it. Management aspects of nonprofit organizations differ a little from other organizations, but are not alien to traditional organizations.

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What type of organization is the Red Cross? ›

We are an independent entity that is organized and exists as a nonprofit, tax-exempt, charitable institution pursuant to a charter granted to us by the United States Congress. Unlike other congressionally chartered organizations, the Red Cross maintains a special relationship with the federal government.

Is the Red Cross a good nonprofit? ›

One of the leading watchdog organizations, Charity Navigator, gives the Red Cross its highest rating — four stars — for accountability and transparency, and three out of four stars overall.

Is the Red Cross a 501 c 3 organization? ›

What percent of Red Cross donations go to charity? ›

The Red Cross is proud that an average of 90 cents of every dollar we spend is invested in delivering care and comfort to those in need.

Is Red Cross a non government organization? ›

We are an independent entity that is organized and exists as a nonprofit, tax-exempt, charitable institution pursuant to a charter granted to us by the United States Congress. Unlike other congressionally chartered organizations, the Red Cross maintains a special relationship with the federal government.

Is the American Red Cross federally funded? ›

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.

How much money does the CEO of Red Cross make? ›

The salary of the CEO of the Red Cross is $737,971 per year.

Gail McGovern is the current CEO of the Red Cross and has held that title for 11 years.

What charities give the highest percentage to their cause? ›

Charity NamePercentage of funds that go directly to the cause, versus administrative or fundraising costs
Feeding America's Hungry Children99.10%
Caring Voice Coalition99.00%
Foster Care to Success99.00%
15 more rows
Dec 28, 2017

What makes a nonprofit different from a for-profit business? ›

Generally, for-profit companies seek to provide a product or service to consumers and make a profit by doing so. A nonprofit organization's purpose is to provide a service or benefit to the community with no intention of earning a profit.

What is the difference between a non profit and a 501c3? ›

These terms are often used interchangeably, but they all mean different things. Nonprofit means the entity, usually a corporation, is organized for a nonprofit purpose. 501(c)(3) means a nonprofit organization that has been recognized by the IRS as being tax-exempt by virtue of its charitable programs.

What is the difference between 501c3 and 501c3? ›

One of the most significant differences is that donors to 501(c)3 organizations can claim a federal income tax deduction for their donation, while donors to some 501(c) entities can't. We make business formation EASY. Learn about our DIY business formation services here.

What is a 501c3 organization examples? ›

Exempt Purposes - Internal Revenue Code Section 501(c)(3)

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.

Which charities have the highest administrative costs? ›

Here are 9 Charities with High Overhead Costs:
  • Defeat Diabetes Foundation.
  • Police Athletic League of New Jersey.
  • National Caregiving Foundation.
  • National Vietnam Veterans Foundation.
  • Autism Spectrum Disorder Foundation.
  • California Police Youth Charities.
  • Firefighters Charitable Foundation.
  • Walker Cancer Research Institute.
Nov 22, 2022

Is Wounded Warriors a good charity? ›

Rating Information

This charity's score is 89%, earning it a Three-Star rating. If this organization aligns with your passions and values, you can give with confidence. This overall score is calculated from multiple beacon scores: 80% Accountability & Finance, 10% Leadership & Adaptability, 10% Culture & Community.

Who has donated the most blood to the Red Cross? ›

Taylorsville, Utah, resident Alonso Frias has been generously donating blood through the American Red Cross for more than 15 years. In that time, he has given some 222 units, the equivalent to 27 gallons of blood.

What is the definition of a non profit organization? ›

A non-profit organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers.

Is Red Cross a religious based organization? ›

The Red Cross is not a religious symbol: due to our Swiss roots, it's actually the reverse of the Swiss flag. However, some National Societies use red crescent or red crystal symbols to avoid negative religious connotations, ensuring it represents protection for all.

Who runs the Red Cross? ›

Gail McGovern joined the American Red Cross as President and Chief Executive Officer in 2008, and has taken a strong leadership role at the nation's leading emergency response and blood services organization.

How do non profits make money? ›

Non-profit charities get revenue from donations, grants, and memberships. They may also get revenue from selling branded products. A non-profit organization's expenses may include: Rent or mortgage payments.

Who originally funded the Red Cross? ›

The first chapters opened in upstate New York, where she had connections. John D. Rockefeller and four others donated money to help create a national headquarters near the White House.

Who benefits from the American Red Cross? ›

The American Red Cross shelters, feeds and provides comfort to victims of disasters; supplies about 40% of the nation's blood; teaches skills that save lives; distributes international humanitarian aid; and supports veterans, military members and their families.

What does the CEO of Goodwill make? ›

James Gibbons, the CEO of Goodwill, makes an average salary of around $500,000 per year. Many believe this to be a substantially high salary for the CEO of a non-profit. The average Goodwill worker earns minimum wage.

How does Red Cross earn money? ›

Red Cross receives substantial support from the community in the form of in-kind donations of goods and services, and time and expertise of volunteers. Figures shown here are for cash gifts only and do not include pro bono or in-kind support.

What percentage of donations go to Save the Children? ›

You can be assured that Save the Children uses the valuable resources donors have provided in the most cost-effective ways possible. Our independently audited financial statements consistently show that out of every dollar spent, 85 cents goes directly toward helping children.

Is St Jude's a good charity to donate to? ›

Jude charity rating and review. According to Charity Navigator — an organization that evaluates nonprofits based on transparency, financial health and accountability — ALSAC/St. Jude Children's Research Hospital has a four-out-of-four star rating for our Overall Score and Rating.

What percentage of St Jude's donations go to charity? ›

We're proud that 82 cents of every dollar received goes to support the treatment, research and future needs of St. Jude.

How does Salvation Army rate as a charity? ›

This charity's score is 60%, earning it a Two-Star rating. This overall score is calculated entirely from a single beacon score: 100% Accountability & Finance. Learn more about our criteria and methodology.

What are the 3 types of nonprofits? ›

There Are Three Main Types of Charitable Organizations

Most organizations are eligible to become one of the three main categories, including public charities, private foundations and private operating foundations.

What are 2 disadvantages of a nonprofit organization? ›

Disadvantages of Nonprofit Status
  • Limited Purposes. In order to be exempt under the tax laws, a nonprofit organization can only perform certain functions listed in those laws. ...
  • Lobbying. ...
  • Public Scrutiny.
May 2, 2022

What are the 4 types of non profit organizations? ›

Exempt Organization Types
  • Charitable Organizations.
  • Churches and Religious Organizations.
  • Private Foundations.
  • Political Organizations.
  • Other Nonprofits.
Jun 15, 2022

How do you tell if a company is a non profit? ›

Tax Exempt Organization Search Tool

You can check an organization's eligibility to receive tax-deductible charitable contributions (Pub 78 Data). You can also search for information about an organization's tax-exempt status and filings: Form 990 Series Returns. Form 990-N (e-Postcard)

Can you fundraise if you are not a nonprofit? ›


You do not have to be registered as a 501(c)(3). In order to host a fundraiser, but you should be direct with where the revenues are going.

Is it better to have a nonprofit or for-profit? ›

Start by asking yourself about your goals for your business. Is your main to make money? Then you should start a for-profit business. But if you want your business to donate profits and services to the public, consider starting a nonprofit business.

What are the disadvantages of a 501c3? ›

Another disadvantage associated with operating a 501(c)(3) is that the finances of a nonprofit are made open to public inspection, and thus, open to public scrutiny. Personal control over the policies and practices adopted by a nonprofit corporation is also limited.

What happens if a 501c3 does not file taxes? ›

If an organization fails to file a required return by the due date (including any extensions of time), it must pay a penalty of $20 a day for each day the return is late. The same penalty applies if the organization does not give all the information required on the return or does not give the correct information.

What are the benefits of starting a 501c3? ›

With 501(c)(3) nonprofits, donations made by individuals to the nonprofit corporation are tax-deductible. Possible state sales and property taxes exemption. This benefit varies by state but nonprofit companies may be exempt from paying sales and/or property taxes. US Postal Service discounts.

What is the most common type of nonprofit? ›

While the IRS recognizes 27 categories, we're going to look at the most common types of nonprofits to help you understand them better.
  • 501(c)(3) What most people picture when they think of a nonprofit—and the most common type of nonprofit—is a 501(c)(3). ...
  • 501(c)(4) ...
  • Social Advocacy Groups. ...
  • Private Charitable Foundations.
Mar 2, 2021

What can a 501c3 spend money on? ›

501c3 Donations

501c3 nonprofits must have charitable, religious, scientific, educational, literary purposes, or provide testing for public safety, foster national or international amateur sports, or prevent animal and child cruelty.

What are the two types of 501c3 organizations? ›

Technically under the IRS's 501(c) code, there are two main types of nonprofits: nonprofit organization (NPO) and not-for-profit organization (NFPO). NPO's serve the public via goods and services while a not-for-profit organization (NFPO) may serve just a group of members.

What type of organization is Red Cross youth? ›

The Red Cross Youth in the Philippines is constituted by children, adolescents, and young adults aged 7 to 25 years old. Their role and engagement in the humanitarian works of the Philippine Red Cross provides them an area to realize their potential in humanitarian leadership.

Is Red Cross a social organization? ›

The International Committee of the Red Cross (ICRC) is an imprtial, neutral and independent organization whose exclusive humanitarian mission is to protect the lives and dignity of victims of war and internal violence and to provide them with assistance.

What kind of organisation is the International Red Cross Red Crescent? ›

The International Federation of Red Cross and Red Crescent Societies (IFRC) The IFRC is the world's largest volunteer-based humanitarian network, reaching 150 million people each year through our 192 member National Societies.

Is Red Cross a religious voluntary organization? ›

It is a voluntary relief movement not prompted in any manner by desire for gain. There can be only one Red Cross or Red Crescent Society in any one country. It must be open to all. It must carry its humanitarian work throughout its territory.

What are the three Red Cross organization? ›

The International Red Cross and Red Crescent Movement consists of three components: theInternational Committee of the Red Cross (ICRC), the International Federation of the RedCross and Red Crescent Societies (the International Federation) and the national Red Crossand Red Crescent Societies.

What is the purpose of the Red Cross organization? ›

The Red Cross, born of a desire to bring assistance without discrimination to the wounded on the battlefield, endeavors—in its international and national capacity—to prevent and alleviate human suffering wherever it may be found. Its purpose is to protect life and health and to ensure respect for the human being.

Is Red Cross a human rights organisation? ›

Upholding human rights

By helping educate people in conflict zones about medical issues, human rights and other pertinent issues, the Canadian Red Cross works to resolve problems in vulnerable areas and promote a better quality of life.

Who is Red Cross target audience? ›

The overall analyses of the target market shows that the American Red Cross has targeted are adults within the age group of 25 to 60 years.
Target Market.
Age16 to 60 years
Individual IncomeAbove $4700 per annum
8 more rows
Jun 9, 2020

What is the largest humanitarian organization? ›

The International Federation of Red Cross and Red Crescent Societies (IFRC) is the world's largest humanitarian network. Our secretariat supports local Red Cross and Red Crescent action in more than 192 countries, bringing together almost 15 million volunteers for the good of humanity.

What is the difference between Red Cross and ICRC? ›

ICRC, national societies from 188 countries and their International Federation form the International Red Cross and Red Crescent Movement. All within the Movement share common fundamental principles but are not linked hierarchically. In conflict situations ICRC takes the lead role and directs the work of its partners.

What is the difference between Red Cross and Red Crescent? ›

The Red Cross is the name used in countries under nominally Christian sponsorship, while Red Crescent (adopted on the insistence of the Ottoman Empire in 1906) is the name used in Muslim countries.

What are the 7 principles of the Red Cross? ›

All Red Cross programs and activities are guided by the Fundamental Principles of Humanity, Impartiality, Neutrality, Independence, Voluntary Service, Unity and Universality.

Does the Red Cross rely on volunteers? ›

We work as part of the International Red Cross and Red Crescent Movement, with millions of volunteers across 192 countries helping around the world to prevent or ease human suffering.


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