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Top Rated

American Red Cross

CharityWatch report issued
March 2020

Top-Rated Charity
A-
CharityWatch Grade
Our independent grade based
on a number of factors.
 
90%
Program Percentage
Amount spent on programs
relative to overhead.
 
$24
Cost to Raise $100
Amount spent to raise
$100 of contributions.

Contact Information

American Red Cross
431 18th Street, NW
Washington , DC 20006-5009

Other Names

American National Red Cross
Red Cross

Tax Status

501(c)3

Stated Mission

Prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.

View similar charities
Data based on Fiscal Year Ended 06/30/2019

Program Percentage: 90%

The percentage of American Red Cross's cash budget it spends on programs relative to overhead (fundraising, management, and general expenses).

$2,926,000,000

Calculated Total Expenses

(rounded)

 

Cost to Raise $100: $24

How many dollars American Red Cross spends on fundraising to raise each $100 of contributions.

$749,000,000

Calculated Total Contributions

(rounded)

Government Funding

0% to 24%

Percentage of cash revenue
coming from government sources

 

Financial Documents

Entity Document Type Tax ID
American National Red Cross IRS Form 990 53-0196605
American National Red Cross Consolidated Audited Financial Statements Multiple
Entity: American National Red Cross
Document Type: IRS Form 990
Tax ID: 53-0196605
Entity: American National Red Cross
Document Type: Consolidated Audited Financial Statements
Tax ID: Multiple

Governance & Transparency

CharityWatch evaluates certain criteria related to a charity's Governance and Transparency. Donors may want to consider a charity's willingness to be open and transparent with CharityWatch to be a good litmus test for determining its commitment to public accountability.
This charity is Top-Rated
What does it mean to be Top-Rated?
 
American Red Cross
meets governance benchmarks.
 
American Red Cross
meets transparency benchmarks.
Transparency
Provides Financial Information
Audit Accessibility
Governance: Policies
Reports regularly & consistently monitoring & enforcing compliance with a written Conflict of Interest Policy
Reports required, annual disclosure by officers, directors, and key staff of interests that could give rise to conflicts
Reports having a written Whistleblower Policy
Reports having a written Document Retention and Destruction Policy
Governance: Financials
Reports providing copy of tax form to all board members prior to filing it with IRS
Reports that financial statements were audited by an independent accountant
Governance: Board of Directors
Reports at least 5 voting board members
51% or more of voting board members reported as independent
Reports documenting minutes of board and board committee meetings
Privacy Policy
Privacy Policy Opt-In Policy  

  Name Title Compensation
1 Gail McGovern President/CEO $709,164
2 Clifford Holtz COO $700,415
3 Shaun Gilmore Chief Transformation Officer $651,238
1
Name: Gail McGovern
Title: President/CEO
Compensation: $709,164
2
Name: Clifford Holtz
Title: COO
Compensation: $700,415
3
Name: Shaun Gilmore
Title: Chief Transformation Officer
Compensation: $651,238

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.

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, 2019. 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 chapters. Also included in the consolidated financial statements are the net assets and operations of Boardman Indemnity Ltd., a 100% owned captive insurance subsidiary and ARC Receivables Company, LLC, a wholly owned bankruptcy-remote special purpose entity. All significant intraorganizational accounts and transactions have been eliminated."

The American Red Cross received donated in-kind services and materials on which it placed a value of approximately $70 million in fiscal 2019, according to its Audited Consolidated Statement of Activities for the year ended June 30, 2019.


According to the Red Cross consolidated audit of June 30, 2019 (Note 1(n), Contributed Services and Materials):

"... Contributed services for the year ended June 30, 2019 include the services of approximately 13,177 volunteers. The Organization recorded contributed services revenue and related expense of approximately $51 million. The $51 million and $53 million recorded in 2019 and 2018, respectively, represent primarily 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 tax filing for the fiscal year ended June 30, 2019 re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding severance payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 4A):

"The amounts shown in Part II, Column B (III) ['Other reportable compensation'] are severance payments in the amount of $185,500 for David Meltzer, General Counsel & Chief International Officer and $142,304 for Greg Williamson, Chief Investment Office[r]. Greg Williamson also received a $100,000 bonus at separation."


Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"The amounts shown in Part II, Column B (II) ['Bonus & incentive compensation'] for the President & CEO, the Chief Financial Officer, the President Biomedical Services, the Chief Operating Officer, the Chief Transformation Officer, the Chief Human Resources Officer, the Chief Development Officer, the President Humanitarian Services, and the Chief Marketing Officer were paid based on written variable incentive plans for 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 the Analyst V, Investments and Chief Information Officer were paid based on a written variable incentive plan for prior fiscal year performance and were approved by the Chief Financial Officer. The amount shown in Part II, Column B (II) for the President, Training Services was paid based on a written incentive plan for prior fiscal year performance and were approved by the Chief Operating Officer. The SVP Collections was based on a written incentive plan for prior fiscal year performance and was approved by the President Biomedical Services."


The reported "Bonus & incentive compensation" amounts by the Red Cross range from a high of $140,140 to a low of $42,382 for 14 total individuals in calendar year 2018. The $140,140 was paid to the Chief Operating Officer, Clifford Holtz, with reported total compensation of $700,415 in 2018 (IRS Form 990, Schedule J, Part II).


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