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 These concerns are prompting the International Red Cross and public
health organizations to press the U.S. group to end its longtime
policy of taking tobacco money, Reuters has learned.
The International Red Cross, which recently rolled out a global
disease prevention program with a strong anti-smoking component,
hasn't accepted tobacco donations since 2008. Most of the group's
189 national affiliates don't accept money either, but the powerful
U.S. member does, as do about half a dozen other countries,
including Germany, Russia and Vietnam.
While precise figures are not available, the American Red Cross and
its U.S. affiliates have received at least $12 million from tobacco
companies such as Altria Group, Reynolds American and Philip Morris
International since 2001, according to Red Cross tax records and
tobacco company press releases and annual reports.
An American Red Cross spokeswoman, Laura Howe, declined to comment
on the dispute with its parent body - whose guidelines are not
binding on its affiliates - but said it was happy to accept any
funds that support its efforts to assist disaster victims. She also
declined to say how much it received from each company.
International Red Cross officials say that by accepting the
donations, the U.S. group risks damaging not only its own reputation
but that of the entire global humanitarian network. Some public
health advocates agree, saying there is a contradiction between the
Red Cross's mandate to aid the vulnerable and its acceptance of
money from an industry whose product may cause death.
Matthias Schmale, under secretary general for the International
Federation of Red Cross and Red Crescent Societies, said officials
have talked with American Red Cross officials and asked them 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 would continue "to put pressure" on the
American Red Cross to change its policy, although he would not say
what form that pressure would take.
Despite the controversy, there has been little public debate about
the donations. And the dispute between the American Red Cross and
its parent body has not been reported until now.
How the dispute is resolved could be felt beyond the American Red
Cross. Anti-tobacco activists hope that if the U.S. group bows to
pressure, it could influence other nonprofits to reject millions of
dollars in donations.
John Stewart of Corporate Accountability International, a watchdog
group, said if the American Red Cross stopped accepting tobacco
money it would undercut the tobacco industry's global public
relations strategy to gloss over its "tarnished image."
PUBLIC RELATIONS BOOST?
Critics argue that by accepting donations from tobacco interests,
the organization, one of the largest charities in the United States
with 2013 revenue of $3.4 billion, is muddying its public health
mission while providing the tobacco industry with a public-relations
boost.
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.
Howe, the American Red Cross spokeswoman, 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."
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Asked about any pressure from the international body to stop taking
money from tobacco interests, Howe said: "As a matter of practice,
we don't share the details of private conversations between Red
Cross officials."
GROUPS SEND LETTER
The International Red Cross has been encouraging its U.S member to
drop the funding since 2008, but it stepped up the pressure in 2014
after implementing a new healthy living program that includes
smoking cessation.
Pressure on the American Red Cross is coming on other fronts as
well. On Dec. 19, some of the largest U.S. public health advocacy
organizations, including the Public Health Law Center and Action on
Smoking & Health, wrote to American Red Cross President Gail
McGovern, urging 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 said. "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.
WHY TAKE THE MONEY?
The tobacco money represents a steady but small percentage of the
American Red Cross's annual contributions - it took in more than $1
billion in donations in fiscal 2013.
Tobacco companies have been donating to the American Red Cross in
some instances as far back as the 1960s, but confirming the size and
dates of donations made before 2001 is difficult because historical
documents are not easily obtainable.
The Red Cross may take the money from tobacco companies because like
most nonprofits it is under pressure 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).”
Altria's Sylvia said it has donated to the organization for decades
and now contributes $500,000 annually 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 given more
than $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.
(Reporting By Jilian Mincer in New York; Additional reporting by Ece
Toksabay in Turkey and Thomas Wilson in Japan; Editing by Eric
Effron and Ross Colvin)
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