Red Cross President: “A 128 Year Old Institution Can Participate in the Digital Age”

The President and CEO of the American Red Cross, Gail McGovern, visited the National Press Club yesterday to headline a luncheon and discuss her first year of service to the organization.

In her speech, "Navigating a Nonprofit through Turbulent Economic Waters," McGovern discussed how the Red Cross has tackled the challenges it has faced -- a record year for disasters, an enormous deficit and a devastating recession.

The biggest accomplishment? The Red Cross has reduced its operating deficit by 75% -- from $209 million a year ago to $50 million today. That's $86 million better than expected.

This morning's Washington Post points to some of the reasons about how they've done it:

"McGovern said the organization had stayed on mission, and that had restored public confidence. It also found new ways to raise money, including working with the digital media company that raised funds for the Obama campaign. 'Our goal is to not only raise money episodically during a disaster, but to ensure that we have the funds to respond before a disaster strikes,' she said."

In her speech, Gail discussed some of the work the Red Cross and Blue State Digital team has been doing to engage and empower donors, volunteers and supporters online:

"We're using Blue State Digital, the digital media agency who worked to raise funds for the Obama campaign in order to make a stronger push on-line. We were able to raise $1 million in just 3 weeks with the average size gift less than one hundred dollars."

"They've also helped us connect donors and volunteers to each other through essay contests and donors matching donors."

"Then there's Facebook, where earlier this year, there was a mad frenzy of viral marketing to vote for the Red Cross in a charity giveaway. We won 794 thousand dollars!"

"We've also sent emails with tips to prevent the spread of the H1N1 virus, and we had fun sending emails from runway model Heidi Klum, and Yankees second basemen Robinson Cano, about CPR training. These activities have brought us 9,000 new donors; six percent committed to sustained giving with a gift of at least twenty dollars per month. But just as importantly, it shows that despite many challenges, a 128 year old institution can participate in the digital age."

Click here to download a PDF version of Gail's speech or watch the whole speech below: