CharityWatch REPORT
Issued August 2017

CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.

Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.

Note(s)
The American Red Cross received donated in-kind services and materials valued at approximately $61.35 million in fiscal 2016, according to its Audited Consolidated Statement of Activities for the year ended June 30, 2016.


According to Note 1 of the Red Cross consolidated audit regarding Contributed Services and Materials:

"...Contributed services for the year ended June 30, 2016 includes the services of approximately 11,200 volunteers. The Organization recorded contributed services revenue and related expense for the year ended June 30, 2016 of approximately $36 million. During year ended June 30, 2016, the Organization developed systems to track the contributed services of certain volunteers...for the first time. Of the $36 million recorded in 2016, $31 million related to these volunteers, primarily reflecting volunteer efforts in support of disaster services and services to the Armed Forces."

[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
According to the American National Red Cross consolidated audit of June 30, 2016 (Note 13, Subsequent Events):

"The American National Red Cross is offering a lump sum special election window from September 1st through October 14, 2016 to terminated vested participants with the option to either cash out their retirement benefit or take an immediate annuity, which was actuarially reduced for early commencement. The option was made available to former employees who terminated their employment prior to July 1, 2016, were vested in the Retirement System of the American National Red Cross and were not receiving monthly payments. Special election window payments will be made upon submission of election forms starting in November 2016."
According to the American National Red Cross tax filing for the fiscal year ended June 30, 2016 (IRS Form 990, Schedule J, Part III, Compensation Information, Supplemental Information):

"Key Employee, Chief Investment Officer, Christina Samson, received a severance payment of $140,538.50. Highly compensated employee, CEO Delta Blood Bank, Benjamin Spindler, received a severance payment of $306,280.90. Highly compensated employee, Deputy Chief Investment Officer, Ann Shelton, received a severance payment of $11,769.23. Highly compensated employee, Margaret Dyer, received a severance payment of $124,788.50."
According to the American National Red Cross consolidated audit of June 30, 2016 (Note 12, Commitments and Contingencies, Consent Decree):

"In April 2003, The American National 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 required compliance with specific standards on how the Organization will manage and monitor its Biomedical Services' operations and formalized management of compliance related issues and provides timelines for their resolution. The Decree subjected the Organization to potential monetary penalties if it failed to meet the compliance standards. ...As of December 4, 2015, The American National Red Cross is no longer under the Consent Decree and the potential monetary penalties related to it. The Organization demonstrated a continuous period of sustained compliance with specific standards on how the Organization manages and monitors its Biomedical Services' operations/compliance."

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