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).