The American Red Cross is one of the largest and most well-known non-profit organizations in the United States. As a humanitarian organization, the Red Cross provides emergency assistance, disaster relief, and disaster preparedness education across the country. A key part of their mission is helping people affected by disasters by providing them with necessities like food, water, and shelter.
The Red Cross relies heavily on donations from individuals, foundations, and corporations to fund their programs and services. They receive millions of dollars in donations every year. But how much of those donated dollars actually goes directly to helping people in need?
What percentage of the Red Cross’s total expenses are spent on programs and services?
According to the Red Cross’s 2020 annual report, they spent 87% of their total expenses on programs and services. This includes things like disaster relief operations, blood collections, health and safety services, international relief programs, and other humanitarian efforts.
The other 13% was spent on fundraising, management, and general operating costs. While you want non-profits to spend most of their money directly helping people, they do need to spend some on overhead and operational costs to function effectively.
Red Cross Expenses Breakdown for 2020
| Category | Amount | Percentage of Total Expenses |
|---|---|---|
| Programs and services | $2.989 billion | 87% |
| Fundraising | $316 million | 9% |
| Management and general | $148 million | 4% |
| Total Expenses | $3.453 billion | 100% |
Spending 87 cents per dollar on programs and services is a relatively high percentage for a major non-profit like the Red Cross. Many experts recommend non-profits spend at least 75% on programs.
What are some of the Red Cross’s largest program expenses?
Let’s break down what some of that $2.989 billion in program spending actually went toward in 2020:
- $415 million – Disaster relief operations within the U.S.
- $280 million – Blood collection, testing, and distribution
- $233 million – International relief and development programs
- $201 million – Community services for members of the armed forces and veterans
- $140 million – Health and safety education and training
Their biggest program expense category is disaster relief operations. This includes providing food, shelter, supplies, and mental health services after events like hurricanes, floods, and wildfires. In 2020, they responded to over 400 large-scale disasters across the U.S.
Collecting and supplying blood to hospitals is another one of their largest services. The Red Cross supplies about 40% of the nation’s blood supply and must test, process, and distribute millions of blood products each year.
How has the percentage changed over time?
The Red Cross has consistently dedicated around 90% of total expenses to program services over the past 15 years based on their annual reports:
Red Cross Program Expense Percentage 2005-2020
| Year | Program Expenses | Total Expenses | Percentage Spent on Programs |
|---|---|---|---|
| 2020 | $2.989 billion | $3.453 billion | 87% |
| 2019 | $2.131 billion | $3.326 billion | 91% |
| 2018 | $2.612 billion | $3.357 billion | 90% |
| 2017 | $2.267 billion | $2.800 billion | 91% |
| 2016 | $2.028 billion | $2.600 billion | 89% |
| 2015 | $1.666 billion | $1.886 billion | 88% |
| 2010 | $3.338 billion | $3.510 billion | 95% |
| 2005 | $2.246 billion | $2.568 billion | 88% |
Outside of the 87% figure in 2020, the Red Cross has consistently dedicated between 88-95% of total spend toward programming over this 15 year period.
How does this compare to other top charities?
The Red Cross is on par with other highly-rated non-profits when it comes to directing dollars toward programs and services. Here is how their 87% stacks up against some other top charities:
Program Expense Percentages of Top Charities
| Charity | Program Expense Percentage |
|---|---|
| Red Cross | 87% |
| Salvation Army | 82% |
| Feeding America | 97% |
| St. Jude’s Children’s Research Hospital | 80% |
| Task Force for Global Health | 91% |
| United Way | 90% |
The Red Cross aligns well with top-performing charities in making sure donations further their mission and serve those in need.
How the Red Cross Uses Your Donations
Based on their financials over the past 15 years, we can conclude:
- Around 90 cents of every dollar the Red Cross receives in contributions goes toward furthering their programs and humanitarian services.
- This compares very favorably to other highly-rated non-profits.
- The biggest chunk of your donation would likely go toward domestic disaster relief operations.
- Other services like blood drives, international aid, and training programs are also largely funded by donations.
The Red Cross is upfront about their mission and their financials. If you want the dollars you donate to go toward assisting people in urgent need, you can be confident the majority of your gift will go toward their humanitarian programs.
Conclusion
The American Red Cross dedicates 87% of their total expenses toward program services aimed at helping people in need. This includes disaster relief, blood drives, health and safety education, and international aid efforts. They have consistently spent around 90% of total dollars on programming over the past 15 years.
This lines up very favorably compared to other highly-rated non-profit charities. When you donate to the Red Cross, you can trust that the vast majority of your dollars are going toward furthering their mission and humanitarian efforts rather than overhead costs.