Finance


Cash and In-Kind Contributions

To fulfill its mission and program objectives, Direct Relief has long sought partnerships with businesses and organizations with particular expertise that is needed and can be leveraged for humanitarian purposes. Direct Relief also solicits and receives cash contributions, which are used to cover internal costs and for goods and services to advance the organization’s mission and that cannot be obtained through in-kind donations. Direct Relief’s financial statements must account for both cash and in-kind contributions that are entrusted to the organization. In Fiscal Year 2016, over 96 percent of our total public support of $779 million was received in the form of in-kind medical products and certain other donated services. Read more >

Timing of Revenue Recognition and Expenses

When taking an annual snapshot at the end of a fiscal year, several factors can distort a realistic picture of our (or any nonprofit organization) financial health and activities. One is the timing of donations being received and the expenditure of those donations, whether in the form of cash or in-kind medical products. Read more >

Policy on Designated Contributions

Direct Relief has a strict policy to ensure that 100 percent of all designated contributions for specific programs and emergency responses are used only on expenses related to supporting that program or response. This is appropriate for honoring precisely the clear intent of generous donors who responded to these tragedies and to preserve the maximum benefit for the survivors for whose benefit the funds were entrusted to Direct Relief. Read more >

Valuation of In-Kind Resources

When Direct Relief receives an in-kind donation, accounting standards require a “fair market value” to be assigned to the donation. Donations of medicines, medical equipment, and medical supplies have long been an integral part of Direct Relief’s humanitarian assistance programs. In assigning a fair market value to the in-kind medical donations received, Direct Relief uses a careful, conservative approach that complies with the relevant accounting standards, and the spirit and purpose of disclosure, transparency, and accountability to the public. Read more >

The Direct Relief Foundation and the Board-Restricted Investment Fund

In 1998, Direct Relief’s Board of Directors established a Board-Restricted Investment Fund (BRIF) to help secure the organization’s financial future and provide a reserve for future operations. The BRIF, established with assets valued at $774,000, draws resources from Board-designated unrestricted bequests and gifts, and returns on portfolio assets. In October 2006, the Direct Relief Foundation was formed and incorporated in the State of California as a separate, wholly controlled, supporting organization of Direct Relief. Effective April 1, 2007, assets in the BRIF were transferred to the Foundation. Read more >

Efficiency and Leverage

In recent years, Direct Relief has spent less than two percent of its financial resources on fundraising efforts and administrative costs. Read more >

Compensation Philosophy

The policy of Direct Relief is to provide compensation that is fair, reasonable, and consistent with compensation paid in the nonprofit sector for positions of comparable complexity and responsibility. The goal of this policy is to recruit and retain high-performing employees and to motivate, recognize, and reward excellent performance. Read more >

Direct Relief’s Federal Tax ID number is: 95-1831116.