American Red Cross Urged To Stop Accepting Donations From Tobacco Firms

The American Red Cross risks tarnishing not only its reputation but also that of the global Red Cross brand due to its refusal to stop receiving donations from tobacco companies, said a top official with the humanitarian network.

These concerns have prompted the International Red Cross and public health organizations to pressure the U.S. group to end its long-time policy of accepting tobacco money, Reuters reported.

The International Red Cross, which recently rolled out a global disease prevention program with a strong anti-smoking component, has discontinued receiving tobacco donations since 2008. Of the group's 189 national affiliates, only a handful including the U.S., Germany, Russia, and Vietnam continue to accept such donations.

Matthias Schmale, undersecretary-general for the International Federation of Red Cross and Red Crescent Societies, said officials have already asked American Red Cross officials to drop the tobacco funding.

"We have been very clear about the potential reputational damage not just for them but for all of us," Schmale said in a telephone interview from Geneva. "So far, we have not taken the route of public condemnation. We want to respect that they are an important supporter of ours."

He said the parent body-- whose guidelines are not binding on its affiliates -- will continue "to put pressure" on the American Red Cross to change its policy, without specifying what form that pressure will take.

Laura Howe, an American Red Cross spokeswoman, declined to comment on the dispute and how much has been received from each company. However, she said in an email that all donations "are important to the American Red Cross and the disaster victims they assist."

"Collectively, donations of all amounts allow us to provide disaster victims with food, shelter and emotional support," she wrote.

Red Cross tax records and tobacco company press releases and annual reports show the American Red Cross and its U.S. affiliates have received at least $12 million since 2001 from tobacco firms such as Altria Group, Reynolds American and Philip Morris International. The precise figures are unavailable.

The Red Cross's mandate to aid the vulnerable, some public health advocates say, contradicts the acceptance of donations from an industry whose product may cause death.

Some of the largest U.S. public health advocacy groups, including the Public Health Law Center and Action on Smoking & Health, wrote to American Red Cross President Gail McGovern on Dec. 19 to ask the organization to stop taking tobacco donations.

"The Red Cross/Red Crescent Movement is respected around the world for protecting life, health and human dignity," the letter read. "To lend its enormous credibility, connection and influence to an industry that sells and promotes a product that kills 6 million people a year is a serious violation of the most basic principles of public health."

The American Red Cross would not comment on the letter, which has not been made public before.

John Stewart of watchdog group Corporate Accountability International said if the American Red Cross, one of the largest charities in the country with a revenue of $3.4 billion in 2013, halts receiving tobacco donations, it will undermine the tobacco industry's efforts to boost its "tarnished image."

Major U.S. and European tobacco companies including Reynolds American, Altria and Lorillard as well as Philip Morris International and British American Tobacco Plc acknowledged the donations and said they were among some of the millions of dollars they give away.

"When there are important disasters, and people have significant needs, that is the right thing for corporations to do," said Altria spokesman David Sylvia.

Donations from tobacco firms represent only a small chunk of the American Red Cross's annual contributions, but like most non-profits it is pressured to raise money each year for its general fund whether or not there is a disaster that brings in donations, said Ken Berger, president and CEO of Charity Navigator, which rates charities for donors.

"One reality is no matter what size a nonprofit is, they are usually strapped for cash," he said. "To have money that is unrestricted and could be used for general operations are the most precious (donations)."

Tobacco firms have been donating to the American Red Cross in some instances since the 1960s. However, confirming the size and dates of donations made before 2001 is difficult because historical documents are not easily obtainable.

Altria's Sylvia said it has donated to the organization for decades and now contributes $500,000 yearly to the American Red Cross Annual Disaster Giving Program. It also has provided many one-time donations after specific disasters.

Reynolds American, its foundation and subsidiaries have donated over $1 million to the American Red Cross during the last five years, according to the company. Philip Morris International has given $123,000 since 2008.