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Old 03-21-2011, 08:57 AM   #1
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US RED CROSS CEO Makes $650,000/year

So maybe better to donate here (jhelp):
http://tinyurl.com/4rs9vfq
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Old 03-21-2011, 08:58 AM   #2
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i will put it to good use
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Old 03-21-2011, 09:00 AM   #3
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usually anyone in a not for profit is banking at the high levels
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Old 03-21-2011, 09:03 AM   #4
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That could/would be a pretty stressful job. NPO or not, I'm surprised it's not more. Takes a lot of money to get a high level person to run a massive operation like that.
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Old 03-21-2011, 09:06 AM   #5
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check out guidestar they rate all the charties
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Old 03-21-2011, 09:07 AM   #6
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That could/would be a pretty stressful job. NPO or not, I'm surprised it's not more. Takes a lot of money to get a high level person to run a massive operation like that.
Last I checked the President of the United States only made $400k/year.
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Old 03-21-2011, 09:13 AM   #7
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That could/would be a pretty stressful job. NPO or not, I'm surprised it's not more. Takes a lot of money to get a high level person to run a massive operation like that.
I'm sure it is a stressful and demanding job, but you must admit something doesn't sound right, when the commercials say "even $5 helps" and the CEO and probably dozens of other employees are scoring well into the 6 figures...
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Old 03-21-2011, 09:17 AM   #8
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I'm sure it is a stressful and demanding job, but you must admit something doesn't sound right, when the commercials say "even $5 helps" and the CEO and probably dozens of other employees are scoring well into the 6 figures...
To be honest I dislike this argument. I understand that may be an initial thought. But it isn't like he is taking home 10 million a year. 650k for someone to manage an organization that size effectively? More then worth it. It is competitive for such talented people, and having an idiot in charge on 100k a year would add a hell of a lot more then 550k a year in waste to an organization the Red Cross size. Presuming he is good (which I guess he is given the money), worth every penny.
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Old 03-21-2011, 09:21 AM   #9
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i'd bet the only reason he makes that much is due to how much everyone below him makes, which only compounds the issue.
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Old 03-21-2011, 09:24 AM   #10
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Pretty much the only way these organizations can get a good ceo, if they want a real leader, they need to pay the going rate and this woman probably pays for herself again and again. If the ceo was a dude, it would probably be even more, she has some pretty solid cred's

Gail J. McGovern joined the American Red Cross as president and CEO on April 8, 2008 and has taken a strong leadership role at the nation’s leading emergency response and blood services organization.

Along with overseeing responses to several high-profile disasters, McGovern has initiated steps to invigorate the $3.3 billion organization, including dramatically reducing its deficit and streamlining its operations.

Prior to joining the Red Cross, McGovern was a faculty member at the Harvard Business School and served as president of Fidelity Personal Investments, a unit of Fidelity Investments. She was also executive vice president for the Consumer Markets Division at AT&T, responsible for AT&T’s $26 billion residential long-distance service and largest business unit.

She earned a Bachelor of Arts degree from Johns Hopkins University and an MBA from Columbia University, and has since been recognized as alumna of the year from both universities.

McGovern is currently a member of the board of trustees of Johns Hopkins University and the board of directors of both the Hartford Financial Services Group and DTE Energy.

McGovern was recognized by Fortune magazine in 2000 and 2001 as one of the top 50 most powerful women in corporate America.
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Old 03-21-2011, 09:24 AM   #11
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Last I checked the President of the United States only made $400k/year.
WG
How does that even compare? Senators make even less. Why not mention them? Politicians don't count, they have other motives and goals. An executive typically doesn't.

An executive of a NPO is still an executive. Unless they are one of the very rare individuals that is completely altruistic, some coin is going to need to be laid out or that person will be jumping ship fairly quickly.

Programmers, salesmen, hell even welders can make into 6 figures. I don't think it's unreasonable to pay somebody in charge of billions of dollars, disaster relief, and over 30k employees a healthy salary.
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Old 03-21-2011, 09:28 AM   #12
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Old 03-21-2011, 09:31 AM   #13
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How does that even compare? Senators make even less. Why not mention them? Politicians don't count, they have other motives and goals. An executive typically doesn't.

An executive of a NPO is still an executive. Unless they are one of the very rare individuals that is completely altruistic, some coin is going to need to be laid out or that person will be jumping ship fairly quickly.

Programmers, salesmen, hell even welders can make into 6 figures. I don't think it's unreasonable to pay somebody in charge of billions of dollars, disaster relief, and over 30k employees a healthy salary.
exactly.. they have to pay these people a respectable amount, what is the alternative? have some two bit ambulance chaser in charge of all that money? Or maybe one of those greenpeace hippies instead? yeah the money would be managed perfectly then!
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Old 03-21-2011, 09:35 AM   #14
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according to a quick goog, >90% of all red cross donations do actually go to help/relief/etc.

that's pretty good eh.
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Old 03-21-2011, 09:40 AM   #15
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interesting, small salary NOT
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Old 03-21-2011, 09:42 AM   #16
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To be honest I dislike this argument. I understand that may be an initial thought. But it isn't like he is taking home 10 million a year. 650k for someone to manage an organization that size effectively? More then worth it. It is competitive for such talented people, and having an idiot in charge on 100k a year would add a hell of a lot more then 550k a year in waste to an organization the Red Cross size. Presuming he is good (which I guess he is given the money), worth every penny.
Yes but one would also think that there wouldn't be much trouble finding someone equally as competent who would do the job for $150,000. In fact perhaps such a person would be better by nature since it is after all a charitable organization which is supposed to help people and not a for-profit corporation bent on sucking as much money out of people as possible. OTOH what do I know? Perhaps she privately donates $300,000 of her salary back to the organization in secret.
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Old 03-21-2011, 09:43 AM   #17
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To be honest I dislike this argument. I understand that may be an initial thought. But it isn't like he is taking home 10 million a year. 650k for someone to manage an organization that size effectively? More then worth it. It is competitive for such talented people, and having an idiot in charge on 100k a year would add a hell of a lot more then 550k a year in waste to an organization the Red Cross size. Presuming he is good (which I guess he is given the money), worth every penny.
there are about 50k people that could fill that job for 1/4 of what he is making and do the same job.
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Old 03-21-2011, 09:44 AM   #18
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there are about 50k people that could fill that job for 1/4 of what he is making and do the same job.
Really? Interesting. I'm sure they would love to hear from these people. You should point them to the application link.
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Old 03-21-2011, 09:44 AM   #19
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That's not much at all considering what a lot of CEOs are making.
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Old 03-21-2011, 09:48 AM   #20
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This is quite normal for a charity to get top help they need to pay a competitive salary. Would rather have someone who did not know what he was doing running the redcross for $35k per year. Event if they paid him 100k/yr he could still find many a job paying a lot more than that. If you want good help your salaries have to be competitive.
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Old 03-21-2011, 09:50 AM   #21
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there are about 50k people that could fill that job for 1/4 of what he is making and do the same job.
50k people who can run one of the biggest organizations in the country? What planet are you living on?
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Old 03-21-2011, 09:51 AM   #22
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thanks for posting this.
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Old 03-21-2011, 09:52 AM   #23
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I think the more relative argument here is, what percentage of the organizations donations are allocated towards administration costs. I believe that the breakdown is as follows

Organizational Efficiency
Program Expenses 91.8%
Administrative Expenses 4.4%
Fundraising Expenses 3.6%
Fundraising Efficiency $0.17 (cost to procure $1 in donations)

Statement for 2009
Income Statement (FYE 06/2009)
Revenue
Primary Revenue $3,209,258,570
Other Revenue $92,545,196
Total Revenue $3,301,803,766

Expenses
Program Expenses $3,143,144,037
Administrative Expenses $151,855,735
Fundraising Expenses $126,579,899
Total Functional Expenses $3,421,579,671

This is always my biggest concern when donating to charities. One of the reasons that I will always donate to the Salvation Army, one of the most efficient charities there is. Also, they are committed to helping out the local community, as we all know, charity starts at home.
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Old 03-21-2011, 09:56 AM   #24
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She makes just under 2%
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Old 03-21-2011, 10:09 AM   #25
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Seems about right.

I have a friend of mine who works for Red Cross, he's a structural engineer. He makes like $200k a year, and gets a "company jeep" every year. I thought it was insane at first until he told me about his job. His "regular job" is reviewing red cross buildings and working on future buildings. In the event of a disaster, he has his bags packed and he can be working half way around the world for months at a time with less than a day's notice working to decided which buildings are safe, which need to come down, working on rescues, etc.
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Old 03-21-2011, 10:12 AM   #26
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Really? Interesting. I'm sure they would love to hear from these people. You should point them to the application link.
Look at the numbers of people that are unemployed. You think that at least 100 of those can not do the job? What about all the new guys graduating from University.

Only arrogance makes someone that thinks they can not be replaced
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Old 03-21-2011, 10:12 AM   #27
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To be honest I dislike this argument. I understand that may be an initial thought. But it isn't like he is taking home 10 million a year. 650k for someone to manage an organization that size effectively? More then worth it. It is competitive for such talented people, and having an idiot in charge on 100k a year would add a hell of a lot more then 550k a year in waste to an organization the Red Cross size. Presuming he is good (which I guess he is given the money), worth every penny.
Its not like its a one man show. How many other people are making really good money doing something that is supposed to be "charity"? Yeah sure, we all need to make a living but these guys don't even need the money (typically they are already filthy rich) and should do it in part because they want to help and do so in part by accepting say 100,000 or so.
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Old 03-21-2011, 10:17 AM   #28
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Old 03-21-2011, 10:17 AM   #29
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Pretty much the only way these organizations can get a good ceo, if they want a real leader, they need to pay the going rate and this woman probably pays for herself again and again. If the ceo was a dude, it would probably be even more, she has some pretty solid cred's

Gail J. McGovern joined the American Red Cross as president and CEO on April 8, 2008 and has taken a strong leadership role at the nation?s leading emergency response and blood services organization.

Along with overseeing responses to several high-profile disasters, McGovern has initiated steps to invigorate the $3.3 billion organization, including dramatically reducing its deficit and streamlining its operations.

Prior to joining the Red Cross, McGovern was a faculty member at the Harvard Business School and served as president of Fidelity Personal Investments, a unit of Fidelity Investments. She was also executive vice president for the Consumer Markets Division at AT&T, responsible for AT&T?s $26 billion residential long-distance service and largest business unit.

She earned a Bachelor of Arts degree from Johns Hopkins University and an MBA from Columbia University, and has since been recognized as alumna of the year from both universities.

McGovern is currently a member of the board of trustees of Johns Hopkins University and the board of directors of both the Hartford Financial Services Group and DTE Energy.

McGovern was recognized by Fortune magazine in 2000 and 2001 as one of the top 50 most powerful women in corporate America.
If they need to wave so much money in their already rich faces to get them to do something that they are supposed to "care" about, it just shows that they don't care at all. Why should I be donating my money when this guy only cares about how much he is banking off it per year?
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Old 03-21-2011, 10:24 AM   #30
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Old 03-21-2011, 10:30 AM   #31
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Look at the numbers of people that are unemployed. You think that at least 100 of those can not do the job? What about all the new guys graduating from University.

Only arrogance makes someone that thinks they can not be replaced
You said 50,000. Now you're down to 100 and suggesting that a recent college graduate should be running the American Red Cross?

LOL, okay.
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Old 03-21-2011, 10:35 AM   #32
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Charity is a "well established Industry" and it runs a lot of money.. it also makes money cleaner when needed..

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Seems about right.

I have a friend of mine who works for Red Cross, he's a structural engineer. He makes like $200k a year, and gets a "company jeep" every year. I thought it was insane at first until he told me about his job. His "regular job" is reviewing red cross buildings and working on future buildings. In the event of a disaster, he has his bags packed and he can be working half way around the world for months at a time with less than a day's notice working to decided which buildings are safe, which need to come down, working on rescues, etc.
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Old 03-21-2011, 10:37 AM   #33
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u guys are silly.. do u think they will get a good CEO if they offer $50k/yr for the job? NOPE

they have no choice.... no CEO making millions will give up their job for redcross to go make $50k/year..
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Old 03-21-2011, 10:48 AM   #34
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If they need to wave so much money in their already rich faces to get them to do something that they are supposed to "care" about, it just shows that they don't care at all. Why should I be donating my money when this guy only cares about how much he is banking off it per year?
Exactly. $250K a year I could see as reasonable, but $650 plus all the perks??? It's supposed to be a charity, not GM or Jet Blue.
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Old 03-21-2011, 11:36 AM   #35
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It just shows the power of marketing and advertising. All those PSAs.....whenever there is a disaster like in Japan, "everybody" immediately thinks "Red Cross". For Japan, I dunno how much their CEO makes but at least these guys look like they are closer to the situation: http://tinyurl.com/4rs9vfq
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Old 03-21-2011, 11:46 AM   #36
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$650k for an organization the size of the Red Cross is not nearly as egregious as many of the much smaller non profits where the executives make the same or even more.

Bono's organization? Now there is something to get angry about.
http://www.nypost.com/p/news/nationa...2mBJbqyXgp6YoO

"ONE gives only a pittance in direct charitable support to its causes -- something Borochoff said the average donor might not realize.

The Bono nonprofit took in $14,993,873 in public donations in 2008, the latest year for which tax records are available.

Of that, $184,732 was distributed to three charities, according to the IRS filing.

Meanwhile, more than $8 million was spent on executive and employee salaries."

Read more: http://www.nypost.com/p/news/nationa...xzz1HGFm8Ja r
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Old 03-21-2011, 11:54 AM   #37
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Wow, now that's a racket. I saw Bono's wife posing in some backwoods Amzaon village in some documentary.

Hey, maybe doing "benefit concerts" is a better way of handling the tax.
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Old 03-21-2011, 01:09 PM   #38
Itchy
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Why not just link direct to the site ? Whats with the tinyurl redirect ?
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Old 03-21-2011, 01:23 PM   #39
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Pretty much everything Bono is involved with turns out to be a total waste. Not really his fault, I'm sure his heart in the right place, but the people around him just waste all the money.

As for the Red Cross CEO, sure they might be able to find a guy to do it for half that much, but what's the real payoff if they go on the cheap? You take a huge risk with a worldwide operation to save a few hundred thousand? It's simply not worth it if you know you have a solid guy for $600K. And as people have mentioned, it's a very small salary for a CEO and it comes with no stock buys or options or anything else which makes it even smaller.
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Old 03-21-2011, 01:44 PM   #40
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This is quite normal for a charity to get top help they need to pay a competitive salary. Would rather have someone who did not know what he was doing running the redcross for $35k per year. Event if they paid him 100k/yr he could still find many a job paying a lot more than that. If you want good help your salaries have to be competitive.
Yup, you get what you pay for
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Old 03-21-2011, 01:45 PM   #41
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Gotta get me into the charity biz ...
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Old 03-21-2011, 02:14 PM   #42
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They send people knocking on doors where I live late at night, the people they send do not look trustworthy. They don't take cash, they want you to sign up for a monthly billing. I phoned the police to make sure it was really them and it was. I contacted the Red Cross and said "what on Earth do you think you are doing?" and they said they know a lot of people will be suspicious but they'll keep on doing it as it brings in a lot of cash.
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Old 03-21-2011, 02:17 PM   #43
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This is why I will never donate one fucking cent to the Red Cross.
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Old 03-21-2011, 03:05 PM   #44
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I really think she deserves it
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Old 03-21-2011, 03:13 PM   #45
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I dont know if there is anything wrong with his salary if someone is willing to pay it. But I dont donate to the red cross ever cause I read somewhere that they keep about 65 cents for every dollar donated which if accurate is complete BS.
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Old 03-21-2011, 05:20 PM   #46
INever
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Why not just link direct to the site ? Whats with the tinyurl redirect ?
For the same reason you put lines in your email.
itchy||@||sextronix.com
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Old 03-21-2011, 05:33 PM   #47
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i never donate to them...
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Old 03-21-2011, 05:42 PM   #48
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I dont know if there is anything wrong with his salary if someone is willing to pay it. But I dont donate to the red cross ever cause I read somewhere that they keep about 65 cents for every dollar donated which if accurate is complete BS.
The Red Cross claims that they keep 8% for overhead and 92% is applied to whatever cause.

I myself do not contribute to the Red Cross...but I do contribute annually to the Salvation Army.
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Old 03-21-2011, 05:53 PM   #49
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They send people knocking on doors where I live late at night, the people they send do not look trustworthy. They don't take cash, they want you to sign up for a monthly billing. I phoned the police to make sure it was really them and it was. I contacted the Red Cross and said "what on Earth do you think you are doing?" and they said they know a lot of people will be suspicious but they'll keep on doing it as it brings in a lot of cash.
Those people probably get a trailing commission. If you offer to make a one-off donation, or look on the web site THEN make a decision, they get all defensive and say that <insert_charity_here> is looking for a long term commitment right now, but really, it's so they get paid their commission every month you stay signed up.

I guess it's all part of the cost of marketing, even in a charity you have to spend money to make money, but it still seems a bit dodgy.

BTW, check with your local authorities and ask if there are laws or a code of practice for hawkers. Around here they're not allowed to knock on your door after 7pm, unless you've specifically invited them.
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Old 03-21-2011, 06:34 PM   #50
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non-profit is the way to go...
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