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(RED) hits US$50m mark for Global Fund

Fundraising | Gemma Ware | 1 Dec 2007

Product (RED), the corporate movement launched last year by Bono to raise awareness and money to fight Aids in Africa, announced last week it had raised over US$50m to fight the disease.

Over 11.6 million (RED)-branded products have been sold in 37 countries since the launch of the initiative in January 2006, raising over $50m for the Global Fund to Fight Aids, Tuberculosis and Malaria.

The donation has catapulted (RED) to the thirteenth largest donor to the Global Fund, outstripping contributions from countries including Australia, Russia and China.

Last week (RED) published the first report into its activity in time for World Aids Day, highlighting the work the Global Fund had done in Rwanda, Ghana and Swaziland with the money donated through the brand’s partner companies.

(RED) partners include global giants such as Gap, Apple, Motorola and American Express, with each company donating a varying percentage of the sales of (RED)-branded items to the Global Fund.

For example, every time an American Express (RED) card is used, the company gives 1 per cent of the amount spent to the Global Fund, while on the high street Gap donates half of the profits from its sales of (RED) products to the charity.

Bobby Shriver, chairman of (RED), said: “Our job is to make the (RED) brand trusted and therefore sustainable, and constantly attractive across many vertical business categories.”

Dr Michale Kazatchkine, executive director of the Global Fund, said (RED) had led to a “major change” in the way the private sector contributed to global causes. “We applaud Bono and Bobby Shriver for their vision in establishing the campaign and thank (RED), its partners and the consumers who’ve chosen (RED) for their leadership.”

However, (RED) has faced criticism in the past for the amount its corporate partners spend on advertising, with some estimates putting the amount at over US$100m.

Jobs Selasie, head of the charity African Aid Action, said the money spent on advertising should be given directly to Africans. “It’s not fair to use this luxury, these big companies to use their image to bring in customers. If they want to make a difference or change, don’t spend this money on their image,” he said. 

Selasie said (RED)’s upbeat annual report was also fuelling the idea that the situation was improving on the ground. “It’s sending the wrong message to the donors. The winners are the companies, these luxury brand companies, not the Africans.”

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Who's Who: Gemma Ware