As the red cross does business to provide a public service it is a nonprofit business.
The American Red Cross does not retain its profits but uses them to provide a public service. Hence, the American Red Cross is held publicly as a nonprofit business. A nonprofit business is one that is created to do welfare for the public. It is not designed for earning profit so as Red Cross provides welfare with the profit earned it will be a non-profit business.
The American Red Cross is also referred to as The American National Red Cross. It is a humanitarian union that is non-profit and provides emergency services. Along with emergency services it also provides disaster relief and makes the public aware of how to face disasters in the United States.
The American Red Cross raises money by selling T-shirts and other goods. and asking for donations. This money is used for the welfare of the public.
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