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National News
Red Cross Leader Describes First-Year Triumphs, ChallengesGail McGovern Speaks on Navigating a Non-Profit through Turbulent Economic Waters WASHINGTON, Tuesday, July 21, 2009 — In a speech today at the National Press Club in Washington, D.C., Gail McGovern, President and CEO of the American Red Cross, described the challenges of running a nonprofit in the recession but also pointed to success in cutting the organization’s deficit by 75 percent and surpassing its goal of raising 100 million in nine months. McGovern outlined the unusual demands thrust upon the Red Cross in her first year at the helm, a multitude of major natural disasters, the organization’s financial troubles, and the economic crisis.
“The fact is, this economy is presenting many challenges for non-profits. But it’s also providing the impetus for the American Red Cross and other non-profits to make needed and sometimes overdue changes. Simply put, there’s a greater acceptance to change in a crisis.” During the last year, Red Cross responded to eight named hurricanes, a record tornado season, the worst wildfires in California history, and flooding in the Midwest—all of which emptied its disaster relief fund coffers. The organization faced an operating deficit of $209 million. In addition, the country entered into a recession, which led more people to seek assistance at a time when fundraising has been difficult. “These are extraordinarily difficult times for non-profits, businesses and families across the nation. I believe that if we focus on our mission, are outstanding stewards of our donor’s dollars, seek new ways to engage donors, leverage new tools and look towards the horizon, we’ll weather the storm,” said McGovern. “When times are tough, the country needs us even more, and we’re committed to be at our very best,” she said. Non-profit organizations must continually demonstrate that donations are well spent. “We must be relentless in demonstrating that their hard-earned money is well spent,” McGovern reported. She noted that through a strong collective effort, the Red Cross was able to drive down its deficit from $209 million a year ago to $50 million today – a 75 percent cut and $86 million better than expected. Fundraising can be a particular challenge during tough economic times. “We fielded a combination of tactics from good old-fashioned community outreach to digital media,” the Red Cross leader said. “We learned that the key was to set our sights high and try lots of different approaches”, adding that these techniques had yielded $95 million in cash and $15 million in in-kind donations, surpassing the original $100 million goal. Finally, McGovern stressed the importance of looking ahead while dealing with the daily challenges, recognizing that planning for the future is key. “Cost-consciousness is a critical element for success for non-profits, but it can only take you so far. We all need to ensure that we look toward the future to stay relevant and to grow,” she said. About the American Red Cross: # # # Media Contacts Save the Children Report Reveals Government Unprepared to Protect Children During Disasters Save the Children's U.S. Programs Finds Only Seven States Prepared to Protect Children; Five-point Plan is Unveiled WASHINGTON, D.C. (June 17, 2009) — Ten years after a relentless assault of unprecedented natural and manmade disasters, a report released today by Save the Children's U.S. Programs reveals that only seven states are meeting crucial minimum standards to ensure that schools and child-care facilities are prepared to respond to the needs of children during a disaster. The report, "The Disaster Decade: Lessons Unlearned for the United States," was released at a D.C.-area child-care center by Mark Shriver, Save the Children U.S. Programs Managing Director, along with actor and advocate Julianne Moore, Artist Ambassador. "The past decade is defined by unrelenting and unprecedented disasters that left children unprotected in schools and child care," said Shriver. "The most vulnerable Americans in the most vulnerable settings are made more vulnerable because of government inaction." Commissioned by Save the Children and conducted by Brown, Berkley and Tucker, the report reviewed four standards in all 50 states and the District of Columbia and found that only seven states — Arkansas, Maryland, Hawaii, New Hampshire, Massachusetts, Alabama and Vermont — are meeting four key standards. The four key standards identified by Save the Children include evacuation and relocation, reunification and plans for special needs children at child-care facilities, as well as multi-hazard plans at schools. Save the Children is calling for immediate action at the federal level to better protect children through a five-point plan: Establish national disaster preparedness standards for child-care centers and schools. Save the Children is also calling on the public to get involved by signing a petition supporting the five-point plan to protect children during disasters. Go to http://savethechildren.org/disaster-decade for more information and to sign the petition. The full report can be found at http://savethechildren.org/disaster-decade-report. Save the Children's U.S. Programs runs one of the most innovative and robust private disaster programs for children in the United States. Save the Children teams are on the ground before, during and after a major event to ensure the safety and well-being of children in shelters, as well as recovery for the local communities. Save the Children also advocates for policy changes at the local, state and federal level.
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