January 27, 2009
Shop (RED)
Michael Wood READ TIME: 10 MIN.
In 2002, The Global Fund was created as a unique public/private partnership dedicated to attracting and disbursing additional resources to prevent and treat HIV/AIDS, tuberculosis and malaria. Since it's start, The Global Fund has approved funding of $11.4 billion for more than 550 programs in 136 countries. U2 frontman Bono together with Bobby Shriver created (RED) to engage the private sector in the fight against AIDS in Africa. After they set up DATA (Debt, AIDS, Trade, Africa) in 2002, it became apparent that while DATA leveraged investment from the public sector to the Global Fund, a need remained for greater private sector funding.
By combining the marketing power of the world's leading consumer brands with the accountability, scale and pace of Global Fund grant-making, (RED) has created a new business model to effectively raise and impact fully invest significant resources to combat AIDS in Africa. (RED) grants (i.e. Global Fund grants supported with (RED) funds) represent the best performing programs within the Global Fund's extensive portfolio of AIDS grants in Africa, thus ensuring that every dollar raised is effectively and immediately translated into lives saved, and that every life thus saved is accounted for. Current (RED) grant countries include Rwanda, Swaziland, Ghana and Lesotho. As (RED) continues to grow and generate additional funding, so too will the portfolio of AIDS grants supported, while maintaining the strict performance standards of the Global Fund and ensuring the effective use of those funds.
The impact and progress of Global Fund financed programs has been possible because of its unique approach. Through its small staff and efficient systems, the Global Fund has administrative costs of less than three percent of all the money contributed to it, ensuring that the vast majority goes directly to support life-saving work in poor countries. 100 percent of (RED) money is put to work on the ground in Africa; no overhead is taken from these funds.
What is the relevance of the name (RED), you may ask? Red is the color of emergency. 4,100 die every day and many others are fighting for their lives; this is an emergency. Brands currently involved with (RED) are Apple, Converse, Dell, Emporio Armani, Gap, Hallmark, Starbucks and Windows. Products contributing to (RED) don't cost more. The point of (RED) is for the partner company to contribute money to the Global Fund by sharing a portion of its profit to help people affected by AIDS in Africa. This is a key aspect of the consumer proposition. The company pays extra - the purchaser does not. Some partners have created product lines that are elevated in terms of the content or materials used (e.g. finer cotton or handmade mudcloth from Mali), but that pricing is commensurate with the materials and production issues involved. The margin of profit that accrues to the Global Fund remains the same.
GAP
Suede-trim Gloves
$24.50
GAP
Rugby-stripe Scarf
$29.50
Starbucks
Gift Cards and
Exclusive Beverages
Converse
Design Your Own Chucks
$60.00
Apple
Gift Card, iPod Nano
and iPod Shuffle
Dell
XPS Laptop, Printer and
All-in-One Computer
Emporio Armani
Mirrored Aviator Glasses
$170.00
Hallmark
Variety of Greeting
Cards and Gifts
Michael Wood is a contributor and Editorial Assistant for EDGE Publications.