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American Red Cross
It is a nonprofit that collects donated blood and provides disaster relief, health, and safety services.
The American Red Cross is a nonprofit organization, not a company that sells stock, so there is no market value to quote and no shareholders to pay. It serves people in need — disaster victims, hospital patients, and anyone who needs blood or a first-aid class — and it funds all of that mostly through donations, not by selling products.
Its biggest operation by far is blood. The Red Cross collects roughly 40% of the nation's blood supply, tests it, and sells it to hospitals, which pay fees that cover the cost of collecting and processing it. Think of it as the middleman between people who donate blood for free and hospitals that badly need it. The second big piece is disaster relief: when hurricanes, wildfires, or floods hit, the Red Cross runs shelters, hands out food and water, and gives emergency financial help. That work is paid for almost entirely by voluntary donations, not by the people it rescues.
A third piece is teaching and preparedness — CPR classes, lifeguard training, and installing smoke alarms — which brings in some fee income but is small next to blood and disasters. Because it is a charity, the money it takes in beyond its costs gets plowed straight back into services rather than returned to owners, and it relies heavily on volunteers to keep those costs down.
Saved answer · last researched 14 Oct 2026
BIG PICTURE
The Red Cross collects about 40% of America's blood supply
- 40% US blood supply collected by the American Red Cross
- 60% Blood supply collected by other organizations
Blood is the product that keeps the organization running, and it gathers about 40 percent of what the country uses. Hospitals call on it constantly, so when donations dip, the shortage is national. That dependence cuts both ways: the Red Cross is a go-to supplier, and it is exposed whenever donors stay home. Source: Cause IQ, data from 2025
Timeline
Clara Barton Starts the Red Cross
After the Civil War, Clara Barton traveled to Europe and saw how other countries ran a network that helped wounded soldiers and disaster victims. She came home with a simple idea: America should have one too. She pushed for a US Red Cross and for the government to sign the Geneva Convention, which it did soon after. Barton then ran the organization herself for 23 years, leading relief efforts at home and abroad.
The First Congressional Charter
Congress gave the Red Cross its first charter, which turned a volunteer effort into something official. The charter spelled out what the group was for: helping the armed forces and their families, and rushing aid to disasters at home and abroad.
A Charter That Built the Modern Structure
A year after Barton stepped down, Congress passed a new charter in early 1905. This one set up the shape the Red Cross still has: a national headquarters in Washington that sets policy and watches over local chapters, with the whole thing acting as the way ordinary Americans voluntarily help people in need.
Teaching America to Swim
Commodore Wilbert Longfellow started the Red Cross Water Safety program and the Lifesaving Corps. It turned out that teaching people to swim and rescue others was something the Red Cross could do at a huge scale—millions have since taken its swimming, water safety and lifeguarding courses, and training became a core service.
March Becomes Red Cross Month
With World War II driving humanitarian needs, President Roosevelt signed the first proclamation making March Red Cross Month. It began as a national call to action and turned into a yearly tradition.
The National Blood Program
After World War II, the Red Cross started a national blood donor program to supply hospitals. Local chapters collected the blood and regional centers processed it, and blood banking became a core mission.
The 9/11 Donation Scandal
After the September 11 attacks, the Red Cross was criticized for how it handled blood and the money people donated for victims and families. It came out that the group had moved $200 million out of its 9/11 Liberty Fund for other uses. The public was outraged, and it was the start of a run of reputational scandals.
Gail McGovern Takes Over
Gail McGovern became CEO of an organization in dire financial shape: a $209 million operating deficit, a pension fund short nearly $1 billion, and over $600 million in loans. She consolidated back-office functions, overhauled the IT systems and refreshed the brand, and the finances began to stabilize.
McGovern Retires After 15 Years
Gail McGovern retired on July 1, 2024, after a 15-year run as the longest-serving leader since Clara Barton. Chief Operating Officer Cliff Holtz took over as president and CEO, continuing the leadership that had been prepared during her tenure. Under McGovern, the FDA lifted consent decree oversight of Biomedical Services after almost 23 years and $47 million in fines, and revenue grew to $3.18 billion.
The LifeBlood Fund
The Red Cross launched the LifeBlood Fund, a five-year, $300 million national effort to strengthen and modernize the nation's blood supply. It followed the organization's second-ever blood supply crisis, with donations at a four-year summer low. The donor base has declined 40% over 20 years while blood demand is expected to rise 12% by 2030, stretching supply beyond sustainable limits.