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Looking at their most recent Form 990, the American Red Cross has over a billion dollars in liquid cash/savings, with another 1.5 billion in more fixed assets,
by blasdel 17y ago
Looking at their most recent Form 990, the American Red Cross has over a billion dollars in liquid cash/savings, with another 1.5 billion in more fixed assets, and cash flow of over 3 billion.
90 days is nothing. Agitating for clearing the funds faster is just going to add overhead.
- Patient0 17y agoAnd even if they didn't have the cash on hand, they could probably get a bridge loan against the expected donations provided they can provide proof that the "the money is on the way".
- falsestprophet 17y agoThis is called factoring and is common in corporate finance where Y net-N (payment after N days or Y% discount at 10 days) is standard operating procedure. http://en.wikipedia.org/wiki/Factoring_(finance) http://en.wikipedia.org/wiki/Factoring_(finance) The Red Cross would sell their invoices from the telephone companies at a discount to a third party. Although, the possibility of fraudulent contributions may complicate this plan.