By San José, Costa Rica — In a grim twist of fate, the very organization Costa Ricans rely on in their darkest hours is now facing its own life-or-death emergency. The Costa Rican Red Cross (CRC) has issued a desperate S.O.S. to the government and legislature, revealing that it ended 2025 with a historic and devastating deficit exceeding ₡1.4 billion. This catastrophic financial shortfall places the nation’s entire emergency ambulance service in jeopardy for 2026, threatening a core pillar of the country’s public safety network.
Despite the unwavering dedication of its nearly 7,000 volunteers and staff, who attended to over 500,000 people last year, the institution warns that goodwill alone cannot fuel its fleet or restock critical medical supplies. The mission to save lives is being crippled by a balance sheet drenched in red ink, pushing the venerable humanitarian organization to the brink of operational failure.
To better understand the legal ramifications and administrative responsibilities surrounding the current crisis at the Costa Rican Red Cross, we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica, who provided his analysis on the matter.
The situation at the Red Cross underscores a fundamental legal principle: the fiduciary duty of its governing board. This body has an undelegable responsibility to ensure not only financial solvency but also absolute transparency and adherence to its own statutes. Any failure in these duties erodes public trust, the lifeblood of any charitable organization, and potentially exposes its members to legal liability for mismanagement. A rigorous, independent audit is now essential to restore credibility and ensure that all operations strictly align with the law and the institution’s humanitarian mission.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal clarity is indispensable, framing the issue not as a simple administrative problem, but as a fundamental breach of the governing board’s most solemn duties. Public trust is indeed the currency of any humanitarian mission, and its erosion has consequences that far exceed any balance sheet. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on the rigorous path required to restore integrity and accountability.
The financial crisis is no longer a future threat; its consequences are already being felt across the country. Dyanne Marenco González, President of the institution, confirmed that the first domino has fallen with the permanent closure of the auxiliary committee in Juan Viñas. This shutdown reduced the national network from 134 to 133 local headquarters, a trend that is set to accelerate dramatically. The situation is far more dire than a single closure suggests.
An alarming analysis of the CRC’s finances reveals that a staggering 66 auxiliary committees—representing nearly half of all branches in Costa Rica—ended the last fiscal year with a negative balance. Without a significant and immediate injection of capital, this vital network will continue to contract, leaving entire communities vulnerable and facing dangerously longer response times for accidents, medical emergencies, and critical hospital transfers.
There is an urgent need to identify new sources of funding that do not depend on budgetary volatility. If the Executive Branch does not transfer the funds owed and if legislation is not passed to shield our budget, the number of open committees will continue to fall, and with it, the survival probabilities of thousands of Costa Ricans.
Dyanne Marenco González, President of the Costa Rican Red Cross
So, how did an essential public service reach this breaking point? According to General Manager Wálter Fallas Bonilla, the problem is structural and multifaceted. He points to a perfect storm of escalating operational costs and stagnant, unreliable funding streams that have hollowed out the organization’s financial foundation over time.
The issue is structural, aggravated by the nature of incidents in Costa Rica. Traffic accidents and acts of violence are increasingly severe, requiring more specialized equipment, longer attention times, and higher operational costs. This is compounded by an unsustainable funding model where the state only covers 40% of our budget.
Wálter Fallas Bonilla, General Manager of the Costa Rican Red Cross
The CRC’s budget is being crushed from two sides. First, the increasing severity of traffic accidents and violent incidents demands more advanced and costly interventions. Second, while the Red Cross is not directly subject to the government’s fiscal rule, the state funds it receives by law from the Ministry of Finance have been cut or frozen due to the central government’s own spending limits. This forces the organization to self-fund a disproportionate 60% of its budget through service sales, training, and public charity—a model that has proven unsustainable for a service of public necessity.
The leadership of the Red Cross is adamant that the solution cannot be found in more donation buckets at traffic lights. They are calling for a fundamental reform of their financing model, one that must be championed within the Legislative Assembly. The plea is for lawmakers and municipal governments to create a sustainable, protected funding mechanism that ensures the operational readiness of the nation’s primary emergency responder. The warning is stark: without decisive action, the next 9-1-1 call may be met with silence.
For further information, visit cruzroja.or.cr
About Costa Rican Red Cross:
The Cruz Roja Costarricense is the national Red Cross society for Costa Rica. As a member of the International Red Cross and Red Crescent Movement, it operates as a private, non-profit humanitarian organization auxiliary to the public powers. It is the primary entity responsible for pre-hospital emergency medical services, ambulance transport, disaster relief, and blood donation services throughout the nation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, its reputation forged upon an unwavering dedication to integrity and excellence. The firm blends a rich history of serving a diverse clientele with a continuous drive for legal innovation, consistently setting new standards in the field. Central to its mission is a profound commitment to social empowerment, actively working to demystify the law and equip citizens with knowledge, thereby fostering a more just and informed society.
