How Much of a Red Cross Donation Goes to Charity

400 Cooper Street, Suite 8000
Ottawa, ON K2P 2H8
CEO: Conrad Sauvé
Board Chair: Sara John Fowler

Charitable Reg. #:11921 9814 RR0001

STAR RATING

Ci's Star Rating is calculated based on the following independent metrics:

✔+

FINANCIAL TRANSPARENCY

B

RESULTS REPORTING

Grade based on the charity's public reporting of the work it does and the results it achieves.

Low

DEMONSTRATED IMPACT

The demonstrated impact per dollar Ci calculates from available program information.

NEED FOR FUNDING

Charity's cash and investments (funding reserves) relative to how much it spends on programs in most recent year.

77%

CENTS TO THE CAUSE

For a dollar donated, after overhead costs of fundraising and admin/management (excluding surplus) 77 cents are available for programs.

My anchor

About Canadian Red Cross:

Founded in 1896, Canadian Red Cross (CRC) works to "improve the lives of vulnerable people by mobilizing the power of humanity in Canada and around the world." CRC's Canadian programs include Emergency Management, Community Health and Wellness, and Prevention and Safety. CRC also runs development programs and delivers emergency relief internationally.

Emergency Management accounted for 51% of Canadian Red Cross' total program spending in F2020. The charity reports that on average, it responds to a disaster every 3 hours and assists 184 Canadians daily. In F2020, CRC responded to over 17 large-scale disasters and helped 67,180 Canadians. It also delivered disaster preparedness training to 6,640 people. The Canadian Red Cross was involved in Canada's response to covid-19. Within Canada, the charity helped with vaccination and health equipment distribution.

Community Health and Wellness represented 24% of Canadian Red Cross' total program spending in F2020. CRC reports that it provided 521,000 hours of home support to seniors and recovering patients. CRC reports that it provided 193,000 transportation rides and loaned 284,000 pieces of health equipment (walkers, wheelchairs, crutches, etc.) in F2020.

International operations made up 19% of Canadian Red Cross' total program spending in F2020. CRC reported that it deployed 220 international aid workers to 38 countries in F2020. It also set up 1 hospital and cholera treatment centre in Mozambique to help 9,842 people in F2020. The charity says that it reached more than 2.4 million people globally in F2020.

Prevention and Safety accounted for the final 7% of total program spending. Activities in this program include first aid lessons and swimming and water safety courses. The charity reports that it taught more than 679,000 Canadians first aid and provided water safety courses to more than 1 million Canadians.

My anchor

Impact Rating: Low

My anchor

Canadian Red Cross is one of Canada's Major 100 charities. It received total donations and special events revenues of $188.8m in F2020. The charity received $163.5m in government funding representing 46% of total revenues. Administrative costs are 2% of revenues (less investment income) and fundraising costs are 21% of donations and special events. This results in total overhead spending of 23%. For every dollar donated, 77 cents go to the cause. This falls within Ci's reasonable range for overhead spending.

Canadian Red Cross has $261.9m in funding reserves, of which $1.6m is donor endowed. Excluding donor-endowed funds, the charity could cover 90% or almost one year of annual program costs with current reserves.

In F2020, Canadian Red Cross paid external fundraisers $8.5m to collect $17.4m in donations. Meaning it costs Canadian Red Cross $0.49 to raise $1 using external fundraisers.

This charity report is an update that has been sent to Canadian Red Cross for review. Changes and edits may be forthcoming.

Updated on June 16, 2021 by Brenleigh Jebb.

Financial Review


Financial Ratios

Fiscal year ending March
2020 2019 2018
Administrative costs as % of revenues 2.2% 2.0% 1.6%
Fundraising costs as % of donations 21.1% 20.3% 22.4%
Total overhead spending 23.3% 22.2% 24.0%
Program cost coverage (%) 89.8% 86.6% 77.0%

Summary Financial Statements

All figures in $000s
2020 2019 2018
Donations 173,602 168,905 138,261
International donations 4,107 5,180 5,180
Government funding 163,478 193,938 299,467
Lotteries (net) 104 169 127
Special events 15,219 14,232 18,230
Investment income (2,923) 2,531 2,244
Total revenues 353,587 384,990 463,509
Program costs - International 54,202 72,074 80,860
Program costs - Canada 235,789 254,044 329,141
Administrative costs 7,832 7,703 7,284
Fundraising costs 39,923 36,952 35,017
Other costs 86 259 99
Total spending 337,832 371,032 452,401
Cash flow from operations 15,755 13,958 11,108
Capital spending 8,543 783 7,699
Funding reserves 261,949 283,932 316,928

Note: Ci used CRC's T3010 filings for its government funding and international donations. This important information is not disclosed in CRC's audited financial statements. Ci reports net lotteries, reducing revenues and expenses by $748k in F2020, $790k in F2019, and $825k in F2018. Ci does not report gain on sale of capital assets as revenue, decreasing revenue by $421k in F2020, $5.4m in F2019 and $1.3m in F2018.

Salary Information

Full-time staff: 1,332

Avg. compensation: $83,046

Top 10 staff salary range:

$350k +

1

$300k - $350k

0

$250k - $300k

1

$200k - $250k

6

$160k - $200k

2

$120k - $160k

0

$80k - $120k

0

$40k - $80k

0

< $40k

0

Information from most recent CRA Charities Directorate filings for F2020

How Much of a Red Cross Donation Goes to Charity

Source: https://www.charityintelligence.ca/charity-details/71-canadian-red-cross

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