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Can Research Rescue the Red Cross?

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Submitted By twridley
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Case Study #1: Can Research Rescue the Red Cross?

Business Research & Applications

Summary

The American Red Cross (Red Cross) had been a reputable non-profit organization and its function is to provide help to victims as well as those involved in rescue and relief efforts. There is a national chapter and there are local independent chapters as well that respond to smaller tragic events that upset people’s lives. The Red Cross operates 24 hours a day, seven days a week; their goal is to be there when crisis strikes. They do not receive financial support from the government; they rely on contributions from U.S. citizens to fund its efforts.

For many years, it had a policy of fund raising through advertising during high profile period surrounding a disaster. Its wed-site states “One of the best ways to help disaster victims, people in need where you live, and people around the world right now is through a financial donations”. Donors are asked to contribute to the Disaster Relief Fund, their local Red Cross chapters, or the International Response Fund. The work that they do has prompted millions in donations each year.

However, after the September 11, 2001 terrorist attracts, their practices came under fire and scrutiny by the media and their long standing reputation was in jeopardy. When disaster stuck, it was their normal practice to estimate the total monetary goal and advertise and collect donations to reach it. Moreover, when they were close to reaching the goal, they stopped advertising knowing donations would continue to come in.

The September 11th tragedy was so great, it took the Red Cross longer than normal to estimate the total required to cover the needs of those affected, however they began their advertising efforts to collect funds. After three weeks, they came up with $300-$320 million to provide

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