The Congressional Charter of the American National Red Cross: Overview, History, and Analysis

Publication Date: March 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

In recent months, Congress has begun to review the performance and management of the American National Red Cross (ANRC). This review has been prompted, in part, by questions regarding the performance of the ANRC in response to Hurricane Katrina.

The performance of any not-for-profit corporation is affected by many variables, such as its governance, resources, by-laws, quality of personnel, and its partnerships with other entities. This report examines just one of these variables, the congressional charter of the ANRC. The report provides an overview, history, and analysis of the present charter of the ANRC and its two earlier versions. This focus on the ANRC's charter is justified on two counts. First, the charter of a corporation may be its most fundamental organizational keystone. A charter sets forth a corporation's organizational structure, goals, and the means for governmental oversight of its activities. Second, the charter is the aspect of the ANRC that is most under control of Congress, and some Members have expressed an interest in considering alterations to the charter of the ANRC.

Although much of the charter of the ANRC has remained the same over the past century, the governance structure of the ANRC has undergone significant changes. In 1947, Congress amended the charter to replace the central committee of 18 persons with a board of governors of 50 persons. The composition of this new governance board's membership differed greatly from that of the central committee. Federal representation fell from 33% to 16% of members, while local ANRC chapter representation rose from 33% to 60%. As a result, the governance board of the ANRC is more democratic, but it also reflects less the positions, perspectives, and interests of the government.

The review and analysis raises questions about the provisions of the current charter of the ANRC that Congress may wish to examine. The report will be updated to reflect significant legislative developments.