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Red Cross Structure Change Not to Affect Local Donations 

The Pine Tree Chapter of the American Red Cross is funded entirely by local donations. Any money designated for their chapter stays in the local community.Folks there say that will continue, even as the Red Cross rolls out some changes in the way it’s structured.Shannon Flavin is the executive director of the Pine Tree Chapter. She says the Red Cross is consolidating accounting and other tasks to regional offices, to save money on operational costs. But, the local chapter will still have control over their books and the funding structure will stay the same.Flavin says donations to the Red Cross will still go where the donor wants– whether it’s staying in the community, international relief efforts, or work the Red Cross does across the country.”The difference right now, and the transition that’s taking place across the country is that the American Red Cross as an organization is moving to a regional business model. And so what’s happening is donations still come in, but the money is being managed, literally, out of a cost accounting center in Worcester, Mass.,” Flavin says. Flavin says there will be no local layoffs with the restructuring, just a re-assignment of some office tasks. But she estimates they could save tens of thousands of dollars on things like audits.She says the money they save on operations will go back into local services, like disaster relief, military communication, and health and safety training.