|The American Red Cross received donated in-kind services and materials on which it placed a value of approximately $67.93 million in fiscal 2017, according to its Audited Consolidated Statement of Activities for the year ended June 30, 2017.
According to the Red Cross consolidated audit of June 30, 2017 (Note 1(k), Contributed Services and Materials):
"... Contributed services for the year ended June 30, 2017 includes the services of approximately 13,100 volunteers. The Organization recorded contributed services revenue and related expense of approximately $40 million and $36 million, for the year ended June 30, 2017 and 2016, respectively. Of the $40 million and $36 million recorded in 2017 and 2016, respectively, $31 million related to 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 on the Our Process page.]
|According to the American National Red Cross consolidated audit of June 30, 2017 (Note 10(a), Benefit Plans, The Retirement System of the American National Red Cross and The American Red Cross Life and Health Benefit Plan):
"Before July 1, 2009, employees of the American Red Cross, including employees of participating local chapters, were covered by the Retirement System of the American National Red Cross (the Plan) after one year of employment and completion of 1,000 hours of service during any consecutive 12 month period. Effective July 1, 2009, the Plan was closed to employees hired after June 30, 2009.
"Subject to provisions contained in collective bargaining agreements where applicable, the Plan was frozen on December 31, 2012 (the freeze date). Employees who were participating in the Plan as of that date keep vested benefits earned, but stop earning additional pension benefits.
"Prior to the freeze date, the benefit formula was based on years of service and the employees' final average compensation. Final average compensation was calculated using the highest consecutive 48 months of the last 120 months of service before the earlier of retirement or the freeze date."
"The Organization offered a lump sum special election window from September 1 through October 14, 2016. This option was made available to former employees who terminated their employment prior to July 1, 2016, were vested in the Plan and were not receiving monthly payments. The special election window provided the participants the option to cash out their retirement benefit or take an immediate annuity, which was actuarially reduced for early commencement. Special election window payments totaling approximately $106 million were made upon submission of election forms starting in November 2016.
"The American Red Cross purchased annuities, totaling approximately $327.5 million effective June 18, 2017, for certain retirees. Those retirees, who as of July 1, 2016, have been receiving monthly pension payments of $500 or less, are included in such annuity purchase."
|According to the American National Red Cross tax filing for the fiscal year ended June 30, 2017 re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):
"Former key employee, Chief Investment Officer, Christina Samson, received a severance payment of $70,269.25. Former highly compensated employee, CEO Delta Blood Bank (a blood bank acquired by Red Cross) Benjamin Spindler, received a severance payment of $612,561.80 pursuant to the terms of his original employment agreement and American Red Cross's severance policy."
"The amounts shown in Part II, Column B (ii) [for reported 'Bonus & incentive compensation'] for the President & CEO, Chief Financial Officer, the General Counsel, the Chief Investment Officer, the President Biomedical Services, the Executive VP Biomedical Services, the President Humanitarian Services, the Chief Human Resources Officer, the Chief Marketing Officer, and the Former Chief Investment Officer were paid based on written variable incentive plans, prior fiscal year performance and were approved by the compensation and management development committee of the board. The amount shown in Part II, Column B (ii) [for reported 'Bonus & incentive compensation'] for the President PHSS, Chief Information Officer and Chief Public Affairs Officer were paid based on a written variable incentive plan, prior fiscal year performance and were approved by the President & CEO. The amounts show[n] for the SVP Regional Operations and SVP Quality & Regulatory Affairs were paid based on a written variable incentive plan, prior fiscal year performance and were approved by the President, Biomedical Services."
The above referenced reported "Bonus & incentive compensation" amounts range from a high of $250,000 to a low of $36,465 for 15 total individuals. The $250,000 was paid to the Chief Investment Officer, Greg Williamson, with reported total compensation of $682,585 (IRS Form 990, Schedule J, Part II).
|CharityWatch's rating of the American Red Cross includes the financial activities of the entities included in the Red Cross consolidated audit of June 30, 2017. These entities are described in the consolidated audit (Note 1) as follows:
"... The Organization has national and international programs that are conducted by its headquarters, biomedical services, and charted local chapters. Also included in the consolidated financial statements are the net assets and operations of Boardman Indemnity Ltd., a 100% owned captive insurance subsidiary, ARC Receivables Company, LLC, a wholly owned bankruptcy-remote special purpose entity, and Delta Blood Bank, LLC, a wholly owned blood bank. All significant intra-organizational accounts and transactions have been eliminated."