American Red Cross Buys $2-Million in Ads to Raise Pre-Disaster Funds

In the next few weeks, major networks and cable channels, such as CNN and NBC, will be running a $2-million television and radio advertising campaign by the American Red Cross – but it won’t mention the name of a major disaster. Instead, it’ll simply ask for your donation.

“In the past, we’ve really initiated our fund-raising during a disaster based upon the anticipated needs of that disaster or series of disasters,” says Laura Howe, an American Red Cross spokeswoman. “This is a little bit different in that we decided to step back and really initiate our fund-raising efforts prior to great disasters.”

The new effort by the Washington organization to raise money preemptively stems from warnings of a busy and severe hurricane season from the National Weather Service. It also anticipates the needs of its disaster-preparedness teams, which respond to about 70,000 disasters each year, and to cover the $450-million it spends annually on average.

Ms. Howe says the funds raised will be spent on maintenance of warehouse and technology systems, vehicle fleets, and training of volunteers and staff members.

So far, the organization has spent $30-million in preparation for the hurricane season, which began in June and ends in November, to move supplies and equipment, plus train volunteers. Since January, the American Red Cross has responded to 29 large disasters, including flooding in Nashville, a Mississippi tornado, and another flood in the Red River area in the Dakotas.

The advertising campaign, which began Wednesday, comes at a time when charitable sentiments are high after the recent environmental disaster of the Gulf oil spill and the forthcoming fifth anniversary of Hurricane Katrina. The American Red Cross is counting on the public’s generosity, even when there isn’t a headline-grabbing disaster holding its attention and making people open their wallets.

“It’s a combination of circumstances that make this a time where the public is more aware of the need for disaster response and the need to be prepared as well,” Ms. Howe says.

Previous television ad campaigns for the organization appeared only after a disaster has struck, the group says. The last television ad the American Red Cross paid to run was during the middle of Hurricane Gustav in 2008, at a cost of about $400,000. The organization says it couldn’t trace how much was donated during that time since it was in the middle of a yearlong fund-raising campaign, which ultimately raised more than $100-million.

The organization recently closed its fiscal year at the end of June, saying it was able to eliminate a $209-million deficit over the last couple of years and is anticipating being in the black this year. “We’re being holistic about this and making sure the money that we’re raising goes toward the full scope of our disaster program,” Ms. Howe says.