Red Cross Takes "Nonprofit" to a new level

The American Red Cross, the biggest nonprofit agency in the US, announced this week that it was going to lay off up to one third of its National Headquarters Staff in the face of a $200 Million "operating shortfall." Wow.

$200,000,000.00 is more than the 77th largest nonprofit raised in all of fiscal 2006 (NonProfit Times) and probably more than the smallest 100,000 charities combined! It's almost $550,000 a day! You have to try hard to blow that kind of cash.

Some wonder if it's the lack of any significant disasters in the last year. That makes no sense to me. I thought the Red Cross spent a lot of money in times of disaster. I'm sure at least $10 Million is directly related to investigations, butt-covering, and missed opportunities just last month when it had to let go its new CEO after he admitted having an affair with a chapter officer.

The Red Cross is not an organization that moves quickly or decisively in its administration. If this is their first announcement, stand by for more to follow.

The good news is, well-run smaller nonprofits (which includes every other nonprofit in the universe) can start to expect some resumes to be arriving. Sift though them carefully, and ask tough questions.