Selling blood for $24M? How the Central California Blood Center funds its operation

Dom McAndrew
·2 min read

FRESNO, Calif. (KSEE/KGPE) – Over $24 million was made in 2020 by the Central California Blood Center from the sale of donated blood.

Tax documents released by the non-profit to the IRS show “blood product sales” at $24,250,740 in 2020. The Central California Blood Center asks for donations from the public but charges hospitals for the blood it collects. “Blood product” is defined by the blood center as the red blood cells, platelets, plasma and cryoprecipitate donated by the public.

While the donations are given by the public free of charge, everything needed to support the operation is not – which is why hospitals are paying for freely donated blood.

“The only way we get paid for any of that comes from [passing] along those costs to the hospitals,” said Chris Staub, President and CEO of the Central California Blood Center.

Staub cites supplies, operation of the buildings, mobile buses, blood bags, the machinery used, laboratory testing – all of it costs money. The system of asking for donations and then selling them on to hospitals is not unique to the Central California Blood Center. Staub says blood centers across the country work in a similar way as donated blood is considered more secure than paid-for blood.

“Yes, the blood is voluntarily donated. Since the 1970s, the FDA has required blood banks to provide blood that is voluntarily donated because it was found that blood from people who voluntarily donate blood is safer than paid blood.”

The sale of blood is not predictable. Donation numbers at the Central California Blood Center show that sometimes there are good years followed by bad years – and some of the funds raised from the sale of blood in the good years go into savings to ensure the Central California Blood Center can continue through the bad years.

“Most years it comes out positive,” said Staub. “We have good investment strategies and this is, I believe, no different from other nonprofits that would be happy to have some cash reserve that is wisely invested. Again, this money can only be used for our mission. It could never be used for any benefit of an individual or stockholder like a for-profit corporation.”

Following the COVID-19 pandemic, the Central California Blood Center is looking to encourage a new crowd of people to donate, placing a new emphasis on encouraging those under the age of 30 to give blood.

“That group of people is our hope for the future,” said Staub.

For the latest news, weather, sports, and streaming video, head to YourCentralValley.com.