The German Red Cross (DRK) is issuing a stark warning about its financial stability, calling for a more reliable system of cost reimbursement from the state and a fundamental rethinking of how non-profit organizations are supported. In an interview with the Neue Osnabrücker Zeitung, DRK Secretary General Christian Reuter highlighted the growing strain on the organization’s resources, driven by soaring costs for energy, personnel and increasingly complex operational demands.
Reuter emphasized that current compensation rates fail to adequately address the escalating expenses, rendering alternative forms of funding increasingly unsustainable. He argues a crucial step is mirroring these cost increases within state funding provisions and streamlining reimbursement processes, mirroring efficiencies already implemented within the care sector. The DRK is also pleading for multi-year funding frameworks, particularly for vital programs like migration counseling, where short-term commitments hinder long-term planning and recruitment. “The uncertainty created by year-to-year funding agreements severely impedes our ability to secure skilled personnel and maintain essential services” Reuter stated.
Beyond funding levels, the DRK is advocating for a reduction in administrative burdens associated with its numerous programs. As a non-profit organization with limited financial reserves, the DRK is fundamentally reliant on state support and charitable donations to maintain its operations. The organization’s mandate compels it to reinvest any surplus income back into existing services, structures and infrastructure – a practice jeopardized by the current financial pressures.
The ongoing financial difficulties have already necessitated significant capacity reductions and facility mergers, leading to a diminished reach of essential programs and a consequential decrease in the number of people served. The DRK is increasingly concerned that a relentless focus on cost-cutting is compromising the quality of its services and the ability to meet growing societal needs.
Reuter concluded by urging policymakers to prioritize non-profit organizations when awarding contracts and allocating subsidies. He cautioned against a race to the bottom driven by minimal standards, warning that such a policy risks compromising the effectiveness and relevance of crucial humanitarian services. The DRK’s call is a thinly veiled pressure tactic, signaling a growing crisis within Germany’s vital welfare infrastructure and raising questions about the government’s commitment to adequately funding essential social services.
