Wallace Hill, chairman of the chapter's Board of Directors, said the chapter will not be closing despite financial concerns.
Hill said several circumstances have led to problems within the chapter during the last four years. "(There were) a series of local disasters: hurricanes, storms, floods and single family fires," Hill said.
He said that although there have been local contributions to the Red Cross, such disasters have pulled down finances for the Orange County chapter. "That barrage of things has cut down our finances," he said. "We've been hit in the last four years with more than the norm."
The drop in the availability of funds forced the chapter to lay off two employees last month.
Hill also said the organization receives no government funding.
"There is no federal money," Hill said. "We send a portion of money from the local chapter to national, and national feeds back money to local when disasters hit. It goes both ways."
At the moment, Red Cross funds nationwide are being sent to aid the relief effort in New York and Washington, D.C., after the Sept. 11 attacks.
"We are mandated not to do any local fundraising until national finishes their fundraising," said Robin Macklin, director of administrative services.
"In other words, we are accepting donations, not soliciting," she said.