Red Cross Announces New Disaster Fund-raising Practices for National Disasters

Red Cross Announces New Disaster Fund-raising Practices for National Disasters

News Release: June 5, 2002
Contact: Janice Osborne, Manager-Media & Community Affairs (610) 865-4400, ext. 262

American Red Cross officials held a news conference in Washington, D.C., this morning (6/5) to announce an initiative to expand efforts to educate the public on the donation process for national disaster fund-raising and on how national Red Cross funds its national disaster relief efforts. Call the local Red Cross (610) 865-4400 with any questions or for more information on this national initiative.

The American Red Cross today announced a series of bold changes in its disaster fund-raising practices. The national initiative will expand efforts to educate donors about the American Red Cross Disaster Relief Fund, and institute a new system of affirmative confirmation and acknowledgement to ensure donations are directed as intended. The program is called Donor DIRECT which stands for D(onor) I(ntent) RE(cognition), C(onfirmation) and T(rust).

"One of the lessons from September 11th is that the Red Cross must do a better job of educating donors about how we fund our disaster relief services, while honoring their intent," said David McLaughlin, Chairman, American Red Cross. "We believe that Donor DIRECT incorporates the best practices in the charitable fund-raising sector and will result in better informed donors and a more accountable Red Cross."

The Disaster Relief Fund provides the financial support for the Red Cross response to more than 67,000 disasters each year - including floods, fires, hurricanes and more. The Fund operates as a revolving account, enabling the Red Cross to respond immediately to disasters and ensuring that victims get comparable assistance regardless of the visibility of the disaster or the ability of the community to support Red Cross efforts. Red Cross disaster assistance is free of charge and typically includes such essential services as food, shelter, mental health counseling and other basic relief services that will assist and lead to recovery.

The Donor DIRECT program makes four important changes in Red Cross fund-raising practices:

1. The Red Cross will use specific language consistently across all Disaster Relief Fund solicitations including advertising, direct mailings, Web sites, telemarketing and all public communications. All solicitations will now include the following language: "You can help the victims of [this disaster] and thousands of other disasters across the country each year by making a financial gift to the American Red Cross Disaster Relief Fund, which enables the Red Cross to provide shelter, food, counseling and other assistance to those in need."

2. Donors who make contributions to the Disaster Relief Fund through the Red Cross' own solicitation channels will be asked to confirm that they understand the purpose for which their donations will be used before their donations are accepted.

3. Donors will receive an acknowledgement after their contributions have been received that will reconfirm their intent and the purposes for which their contributions will be used. These acknowledgements also will instruct donors on what to do if they have any questions about how their contributions will be used.

4. The Red Cross will trigger a fundraising transition policy in any disaster where it appears that contributions made around the time of the disaster may exceed the cost of the anticipated disaster assistance the organization customarily provides. The transition policy will explicitly inform potential donors that enough money has been received for the current disaster and encourage them to give to the local chapter or to the Disaster Relief Fund to support the victims of future disasters. This policy is intended to avoid a situation where too much money is raised around a disaster which, in turn, creates an expectation that more money will be spent on its victims than is normally the case under standard Red Cross protocols.

"Donor DIRECT is a commitment to strengthen the bond between the Red Cross and millions of donors on whose generosity and trust we rely to respond to disasters every day," said Harold Decker, Interim President and CEO of the American Red Cross. "It recognizes the absolutely critical value that donors bring to this organization, and the fundamental connection between their faith in the Red Cross and our ability to provide the best disaster relief services possible."

While the Red Cross will maintain its policy of honoring all donor designations, the organization will continue to promote undesignated giving to the Disaster Relief Fund so that it can respond with equal speed and compassion to the victims of disasters.

"In my role as Independent Overseer of the American Red Cross Liberty Disaster Relief Fund, I have met and heard from many Red Cross contributors," said Senator George Mitchell, the former United States Senate Majority Leader.

"The unprecedented response by the American people following the September 11th attacks - many from donors new to the Red Cross and other charities - has given most Americans a vested interest in how their donations are spent and for what purpose. The Donor DIRECT program is responsive to this new environment by helping to clarify donor intent, and will reassure contributors that their donations are being used in a manner consistent with the best traditions of the Red Cross."

The Donor DIRECT program is a result of a six-month long process that included an examination of its current practices, consultation with experts in the field of charitable fund raising, and testing of various approaches with existing and potential donors. Donors and the public can expect to see the changes embodied in Donor DIRECT in place as of July 31.

The Red Cross consulted many different organizations in developing the Donor DIRECT program. One of the organizations consulted was the BBB Wise Giving Alliance, whose President H. Art Taylor said: "The BBB Wise Giving Alliance appreciates that the American Red Cross has taken positive steps to strengthen and clarify its fund raising messages. We believe that donors, beneficiaries and the charity itself, all benefit when there is a clear understanding of how donations will be used."

The American Red Cross is dedicated to saving lives, easing suffering and restoring hope at home and around the world. Currently operating on a budget of $3 billion, the Red Cross annually mobilizes relief to the victims of more than 67,000 disasters nationwide and has been the primary supplier of lifesaving blood and blood products in the United States for more than 50 years. In 2001, the Red Cross also trained almost 12 million people in vital lifesaving skills, provided direct health services to nearly 2.6 million people and delivered more than 21 million locally relevant community services. The organization also assisted international disaster and conflict victims in close to 40 locations around the globe, and its emergency communication centers processed 1.2 million calls in support of U.S. military families.

EDITOR'S NOTE: ADDITIONAL INFORMATION ON THE DONOR DIRECT PROGRAM CAN BE FOUND AT WWW.REDCROSS.ORG.