The American Red Cross has actually long been acknowledged as the universal sign of humanitarian services– and it’s a costly operation.
In 2022, the American Red Cross produced more than $3.2 billion in operating earnings and invested simply over $3 billion in expenditures the very same year, according to its monetary declarations.
Contributions just comprise about a 3rd of the company’s earnings.
“It’s really sort of the charity of choice,” according to Jake Johnston, a senior research study partner at the Center for Economic and PolicyResearch “When the White House starts raising money, when the big corporations, the NFL, Hollywood A-listers are raising money for the aftermath of a disaster, it’s most likely targeted toward the American Red Cross.”
But most of its earnings, simply over $1.8 billion, originates from what its monetary declarations describe as “Biomedical services.”
“The American Red Cross essentially collects blood from donors and then as part of the way it raises revenue to recover costs, then sells that blood to about 2,500 hospitals and medical facilities across the country,” stated Laurie Styron, CEO and executive director of CharityWatch
When CNBC asked about the rates of these items, the American Red Cross reacted that “prices for a unit of red blood cells is proprietary information. The pricing is determined by purchase volumes by blood type, service levels, and delivery requirements as well as other agreed upon terms with a hospital.”
The American Red Cross even more clarified that it “does not charge for the blood itself” however is “reimbursed by hospitals and transfusion centers for the costs associated with providing blood products.”
A bulk of the American Red Cross’ operating costs, simply over $2 billion, is likewise invested in gathering blood, according to its monetary declarations. That’s about $139 million more than the earnings it gathers from offering the blood.
Michael Thatcher, CEO of Charity Navigator stated, “drawing blood is actually a medical intervention that requires certain levels of certification by the people doing that work, the preservation of that blood, making sure that it stays clean and getting them to all these places. All of that costs money.”
Watch the video above to see how the American Red Cross makes and invests its billions.
