How is the Red Cross Being Affected by this Economy?

By Jack Etzel

The Southwestern Pennsylvania Chapter of the American Red Cross was chartered in 1917 and today serves 1.6 million residents in Allegheny, Fayette, Greene and Washington counties. Additionally, it’s part of a regional chapter that includes five other surrounding counties. Most readers know that when disaster strikes, the Red Cross is there to help victims with their immediate needs and often offers long-term assistance as well. But since it depends almost entirely on volunteers and charitable donations, what happens to the level of aid the organization offers in these poorer economic times? North Hills Monthly spoke with Brian Knavish, the marketing and communications coordinator at the American Red Cross headquarters in downtown Pittsburgh.

North Hills Monthly Magazine (NHMM): Brian, how has the Red Cross been affected by this economic downturn?

Brian Knavish: The economy really has affected us, but then all nonprofits in this economy are having tough times. What a lot of your readers may not be aware of is that the American Red Cross is not a government agency. Many don’t realize that we are funded entirely—100 percent—by donated dollars. Whether it comes from individuals, corporations, foundations and other such sources, the fact is that we don’t get any tax money or subsidies. It all goes back to people’s generosity and their ability to share.

NHMM: How is generosity and sharing doing these days?

Knavish: As the economy goes, so our donations go. When the economy is flourishing, people tend to have more money to give. Now, when the economy is struggling, and people may not even have jobs, there is certainly less money for donations. I think that even those who do have jobs are hesitant because they’re not certain about the future. So, the answer to your first question is, yes, we’ve been affected, and the second answer is that we are doing a lot to combat that problem. All things considered, we’re doing pretty well. We’ve come up with some new fundraising events and we’re always looking at new ways to streamline our budget to keep our expenses to a bare minimum. During times like these, those steps pay off.

NHMM: When you say the words Red Cross, one thinks of volunteers. How much of the organization is dependent on those people?

Knavish: We have always utilized our volunteers to the maximum, and they continue to be very beneficial to the Red Cross. If you look at the Red Cross as a whole, not just this chapter but all chapters, there’s an interesting statistic that might surprise your readers. We are 97 percent volunteer. Many organizations have volunteers to move boxes or do some filing, but in the Red Cross, our volunteers are given truly significant jobs because the whole organization was started as a volunteer movement. Here, they hold office positions. In my own department, a team of volunteers is there to speak to the media 24/7 on behalf of the Red Cross. We have disaster spotters who are volunteers; collectively, volunteers pretty much still run the organization. We couldn’t function without them. And, obviously that continues to keep our expenses to a minimum.

NHMM: Earlier you mentioned fundraising.

Knavish: Our biggest fundraiser, the Red Cross Ball, is this month, which is a big gala event. In 2009, we cut expenses by about $20,000 on the ball, which resulted in the fact that even though our gross was less because of the economy, our net income was more. In September, we also added something called the Hero’s Breakfast. We had one of the passengers from the airplane that made the emergency landing in the Hudson River speak at that event. We had hoped to make $20,000, and we made more than $30,000. By doing things like that, we’ve helped offset the effects of the economy.

NHMM: Looking back, how much was this chapter involved in the Haiti earthquake disaster?

Knavish: All chapters were in on fundraising for that, but then we got the call that there were more than 50 Haitian orphans coming here. So, in addition to doing that big picture fundraising, it became personal. I can tell you that experience was life-changing for them and for us. They were so well-behaved. They bonded with the volunteers so well. The volunteers were with these kids around the clock. The children wanted to be hugged and to play. It was a horrible thing, but it was wonderful to be able to help in a personal way.

NHMM: Obviously, Haiti was an exception. What do you do the rest of the time?

Knavish: This chapter responds to a disaster an average of once every 29 hours, and most often, those are fires. We help with food, clothing and shelter from our own local disaster relief fund. That’s pretty much once every day. Then, because of our location, we respond to floods. While a lot of attention is paid to the big national disasters, to the people here who are burned out of their homes or who have lost their homes because of floods, to those victims and families, the disaster is just as tragic. We need to raise awareness that donations must come in to help us respond virtually every day or night right here in the Pittsburgh area. We always need people who can donate either their time or their money. We especially need disaster responders in outlying areas such as Butler and other places of lesser population.

NHMM: Brian, thanks for reminding us that, unfortunately, every day is a disaster for someone.

For more information on the Southwestern Pennsylvania Chapter of the American Red Cross, visit www.swpa.redcross.org.

To make a donation, call 412-263-3100 or to become a Red Cross volunteer, call 412-263-3136.