The American Red Cross Society

The Red Cross Society is a non-governmental organization managed by a group of volunteers whose main aim is to prevent, prepare and relieve them from disaster (Hutchinson, 2018). It is a humanitarian organization whose mission is to respond and prepare to emergencies that affect their lives negatively. It is also dedicated to helping people to access basic needs like food, clothing, water, and shelter after a disaster has occurred. The organization is not affiliated with the government and does not receive any funding from the state (Hutchinson, 2018). Red Cross relies on funding coming from volunteers who donate their surplus to the institution.

The non-profit organization has various strategies on helping humans to manage and prepare for natural disasters. For instance, the institution has classes for disaster management where each household is advised to have at least one member trained in responding to unexpected events. The Red cross society responds to over 80, 000 disaster cases annually in the United States. Over 91% of these emergency events are single family fires in the United States (Maxwell & Walker, 2014). Other natural emergencies that the society help human include; disease outbreak, accidents, floods, and terrorism among others.

Funding Sources

The American Red cross society consists of about 770 regional chapters. Each chapter has a national board of directors who determine the most vital programs and services that are most needed in a particular area. the organization’s annual budget is approximately 4.2 million dollars and is distributed among the regions (Elliot & Sullivan, 2015). The organization’s budget is raised from donations and cost and cost recovery levies that they charge on some of their services. For example, they have a program of classes regarding disaster management where at least one member of each household is urged to enroll.  The classes timelines vary and can cost between 30-50 dollars for each person (Elliot & Sullivan, 2015). It is a worthy investment given the cost and willingness of families to have their member educated on emergency response techniques.

Apart from the smaller strategies of raising funds, the organization has invested in services like the private ambulance service and hotels as a long-term income generation method. The organization generates its come domestically through the property which is enhanced by the fact that the government provides it with free land to ensure the society sustains itself. Red Cross has a number of celebrity support from the likes of the Black Eyed Peas, Cameron, Bruno Mars among others who support the organization financially through personal donations (Kiss et al. 2015). The society incorporates celebrities in various fundraising events like charity walks, athletics, and other huge annual events. The events such as athletics are normally sponsored by various institutions who award the winners and the remaining funds channeled to American Red Cross society. red cross has the annual fundraising gala that they do host to raise funds from several volunteers around the country. The latest annual event was graced by President Trump and was meant to raise funds to help Republican refugee supporters who had been affected by a travel ban restricting them to remain in their countries of origin.

 Annual Giving Strategy

The Red Cross organization has International Fundraising Committee (IFC) that usually organizes great charity annual events. The committee has been in operation since 1992 and has realized millions of dollars for disaster management for people in crisis (Elliot & Sullivan, 2015). Some of the annual donation events organized by the committee include fashion shows, modeling, film screenings, and entertainment concerts. The Red cross gala normally attracts celebrities and high-profile guests from different parts of the globe. In such event, donations are made through purchasing of tickets or donation hotline numbers where volunteers make charity payments. Sometimes the ceremony may be some dinner or include the red carpet which has an overwhelming demand in terms of attendance.

The annual gala not only takes place in the United States but also other regions around the world. The event may also be scheduled to take place close to festive seasons like Christmas. For example, in London’s Iconic St Paul’s Cathedral which brings people together for donations regardless of their religions. The event sells tickets ranging from 20 to 50 euros to the high population which normally attend concerts. At times, after the concert, there is a special dinner with a limited number of guests who usually buy premium tickets as a strategy for raising funds (Kiss et al. 2015). The guest may be involved in online auctioning which also raise funds for the Red Cross society.

 Major Gifts Strategy

The non- profit organization has a strategy of making donations through gives during special festive seasons especially Christmas and New year. The gift cards can also be on sale during someone’s birthday or wedding where a couple can purchase the physical gift cards for each other (Elliot & Sullivan, 2015). The gift strategy is meant to encourage people to make donations. Instead of asking people to donate their money, it is important to make them see something meaningful in their donations. Someone may donate to the society by purchasing a gift card worth 50$ and in return get a gift worth 10$ (Elliot & Sullivan, 2015). At the end of the period, the nonprofit organization raised 40$ which can provide shelter to one person.

At times the charity gifts are given for free as a marketing strategy. Firstly, the gifts may be a recognition for the greatest participants have previously made donations to the organization. The move is aimed at encouraging others to make charity donations for emergency responses. Red Cross spends an average of 24% cost on gifts which are later on covered by financial donations (Elliot & Sullivan, 2015). The organization usually start the gifted program at the beginning or at the end of the year which instigates more donations. In some instances, Red cross may deliver gifts for a particular group of people at their doorsteps with messages wishing them happy safety to encourage donation.       

Special Events Strategy

The Red Cross organization has partnered with various institutions to provide leisure activities that raise funds for humanity. Some of the special event organized by the society include a marathon which invites various athletes for a competition (Kiss et al.2015). The events are usually sponsored by other institutions which are trying to build their brand image by being part of the society. London marathon is one of the most popular British Red cross hosts charity events that attracts many athletes. During the marathon, winners are rewarded as some of the funds incorporated in the organization’s budget.

Over the years, society has been known for their blood donations events where healthy people are asked to donate which can be used by people during emergencies. During such events, there are also business numbers for people who are unable to donate blood, make their voluntary payments (Eliot & Sullivan, 2015). There are also walks and sports challenges like swimming where the youths can avail themselves to compete. The sporting activities are usually graced by one of their supportive celebrities to encourage attendance. Consequently, such events raise funding through the sale of tickets. Sometimes that red cross society engages in auctioning business where the items donated by volunteers are sold off to the highest bidders. As a result, the organization realizes funds which are channeled to the main budget.

 Other Methods of Fundraising

With the improvement of new technology and the growth of social networks, Red Cross can get more donations using the online platforms. Natural disasters or tragedies can be communicated through the social networks for people to be informed of the plight of other humans. Consequently, people can make their donations through the mode of payments like PayPal. Some new donation strategies exist in the malls and the supermarkets where the Red Cross tins are placed at the cashiers (Maxwell & Walker, 2014). The customers are then given an opportunity to donate the coin balances on such tins. The red cross tins may be located in other social areas, parks, sports grounds and social halls where people who are financially stable can make their donations.

 Red Cross can also raise funds by investing in stock in companies that have been listed in the stock market. It involves using available funds to generate more money by going to companies that provide frequent dividends or bonds that are controlled by the government. The strategy of investing in the stock market is suitable for Red Cross since they are exempted from tax regulations by the government (Maxwell & Walker, 2014). Nonetheless, this method of revenue generation requires the organization to adhere to particular rules which ensure the money does not benefit a few individuals like directors and CEOs. The NGOs are banned from using directors as the individuals may use the platform to hide his or her assets from the government to evade taxes.

Since Red Cross organization is a society, it can introduce a membership program where interested parties pay a fee to become members. For instance, the organization can place membership fee at 5 US dollars which is renewable after one year (Maxwell & Walker, 2014). Consequently, the organization can generate funds from the strategy and increase their annual budget. However, to encourage people to join or renew their membership is by providing some advantages to the members. An example of special benefits to the members can be free entry to the annual mega fundraising events. The move can stimulate more people to join the organization. As a result, the nonprofit organization will have a constant annual supply of a particular amount of money.

Conclusion

The Red Cross society is a humanitarian organization whose main objective is to improve the quality of life through disaster management. It provides food, shelter, and clothing to persons who have been affected by terrorism, civil war, floods, fire regardless of their origin. The organization receives funding from volunteers who are also dedicated to improving the lives of other humans. Over 90% of the personnel working for red cross are volunteers except for a few nurses who are paid salaries (Maxwell & Walker, 2014). There are even some executive members who channel their salaries to the national budget for disaster management. The organization has a cabinet of celebrities which consists of influential people around the world who funds the society.

References

Elliott, J., & Sullivan, L. (2015). How the Red Cross raised half a billion dollars for Haiti and built six homes.

Hutchinson, J. (2018). Champions of charity: War and the rise of the Red Cross. London: Routledge.

Kiss, J. E., Brambilla, D., Glynn, S. A., Mast, A. E., Spencer, B. R., Stone, M., ... & Cable, R. G. (2015). Oral iron supplementation after blood donation: a randomized clinical trial. Jama, 313(6), 575-583.

Maxwell, D. G., & Walker, P. (2014). Shaping the humanitarian world. Routledge.