Nonprofit organizations are ranked and rated by many independent observers, watchdog groups, and consumer advocates. Over the past year, Direct Relief again has received among the highest ratings of any U.S. nonprofit from the American Institute of Philanthropy (“A”), Charity Navigator (“four stars”), the Chronicle of Philanthropy ("California's largest International charity"), and Forbes (“100% fundraising efficiency”). Direct Relief also remains a member of the Better Business Bureau’s Wise Giving Alliance. Each evaluator uses a different method, but their common general approach is a review of a nonprofit’s finances and the percentage of income devoted to various categories of expenses – typically fundraising, general administration, and programmatic activities.
In recent years, Direct Relief has spent less than one-half of one percent of our annual support on fundraising and less than one percent on administration. That simple math is why Direct Relief’s efficiency and expense ratings are consistently among the best in the U.S. The support we receive includes substantial donations of medicines, supplies, and equipment from healthcare companies. And Direct Relief’s accounting for the value of these products always has been conservative, using independently established wholesale prices as the basis – not the donor companies’ higher retail prices.
Fundraising expenses remained less than half of one percent of the total public support of $241 million we received, and administrative expenses amounted to less than one percent. These and many more facts are contained in Direct Relief’s financial statements and explanatory materials in this section.
In 2006, Direct Relief received an unanticipated and unrestricted bequest of more than $34 million from the estate of a longtime donor, Mr. H. Guy DiStefano. (see release) This gift led to our establishment of a supporting organization, the Direct Relief Foundation, which is wholly controlled by the Direct Relief International Board of Directors. This new structure was created to clarify the long-term nature of these funds as distinct from general donations received for ongoing work or those restricted by donors for specific projects or emergencies. Separating the funds also enables a thoughtful investment strategy. The Foundation has no paid employees and its finances and annual reporting, though separate, will be consolidated with Direct Relief International’s reporting to provide a clear view of the resources of our organization and how we are using them.