- Total income
- Administrative expenses
- Fundraising expenses
- Program percentage
- Accessible financial information
- Donor communication
Direct Relief has reported growing annual revenue over the last several years:
An area which is often scrutinized by current and potential donors is the amount of the charity’s budget which is spent on administrative expenses, especially the salaries of the executives. Direct Relief only uses about 0.5 percent of annual revenue for administrative expenses, which is very low.
Direct Relief spent 0.3 percent of its annual revenue on fundraising in 2015, which is consistent with the performance metrics of past years. In addition, the organization’s fundraising efficiency is outstanding—for every dollar raised by Direct Relief, less than 1 cent is spent on fundraising.
An important indicator the quality of a charity is the percentage of its annual revenue which is used for program delivery. Direct Relief has an exemplary record for allocating high percentages of its annual revenue for program delivery. In 2015, 99.2 percent of the organization’s annual revenue was used for program delivery, which is impressive!
Accessible Financial Information
Direct Relief’s annual reports, audited financial statements, and IRS Form 990s are all easily accessible on the organization’s website. These documents are available for 2001 to 2015.
Direct Relief communicates with donors and other interested parties through several channels. The organization provides an informative e-newsletter, as well as operates robust social media profiles. Individuals can subscribe to or connect with Direct Relief’s RSS Feed, Facebook, Twitter, LinkedIn, Google+, Flickr, and YouTube accounts.
Direct Relief has been widely recognized for its mission delivery, program efficiency, and developments. Direct Relief has received over one hundred awards and recognitions since 1994, including:
- # 1 on The Top 10 Charities Changing the World in 2015 awarded by CNBC
- #8 on The World’s Most Innovative Companies (Non-Profit Category) by Fast Company—Direct Relief was recognized for its efforts in mapping for the Ebola crisis
- Special Achievement in GIS Award by Esri as a recognition of Direct Relief’s integral role in developing map applications to support the “One Million Community Health Workers” campaign
- Clinton Global Citizen Awards was awarded by The Clinton Global Initiative. This award recognizes “exemplary leadership and groundbreaking work that has effected positive, lasting social change”
- First Place, Story Map at the Esri User Conference, which recognized the story map which was created during the One Million Community Health Worker campaign
- Second Place, Best Use of Esri’s API, which was also awarded at the Esri User Conference
- Negative press
Most of the negative press that Direct Relief has been involved in has to do with comparison to another nonprofit organizations. The following are examples of negative press coverage received by Direct Relief:
Overvaluing Donations from Direct Relief by World Help
In 2012, Forbes reported that World Health had admitted to “wildly overstating” the value of medical supplies received from Direct Relief. Excusing its behavior and attributing the error to “fraudulent documents,” the charity reported that it had more than doubled the value of the donation and filed an amended tax return with the proper figures included. The figures reported by Direct Relief were accurate on its own tax return and its shipping inventories, so it is unclear which documents the CEO of World Help is referring to when he stated that his organization was the victim of “fraudulent documents.”
Financial Fraud Growing in Nonprofits
Several organizations have found that they are victims of both internal and external fraud. Some organizations go to the extreme of hiring criminal investigators. During an independent investigative report by Reuters, nearly one-third of charitable organizations were unable to provide accurate and up-to-date financial information as related to fraud. Direct Relief has been under investigation since 2010, and has reported “less than $10,000” in fraud each year.
Frequently Asked Questions
What does Direct Relief do?
Direct Relief provides requested medical and pharmaceutical supplies to those affected by poverty or natural disasters. This aid is given directly to local healthcare facilities and to support the projects of other agencies. Direct Relief provides relief in all 50 states and 70 countries, regardless of political or religious beliefs, ethnic identities, or the agency’s ability to pay.
How are Direct Relief’s programs funded?
Direct Relief’s funds are received from individuals, agencies, foundations, and businesses. Direct Relief does not receive grants from the United States government or other governments.
Are donations to Direct Relief tax deductible?
Direct Relief is a 501(3)(c) organization and all donations are tax deductible to the extent of the law. Questions about individual tax circumstances should be directed to a tax professional. Receipts are sent to donors for their individual tax returns.