CharityWatch Analysts perform an in-depth analysis of charities' audited financial statements and IRS tax filings, and often review other documents such as state filings, annual reports, and fundraising contracts during their evaluations. Below are select notes that CharityWatch believes may be of interest to donors.
Any time an Analysts' Note refers to a charity's Audited Financial Statements or IRS tax form, CharityWatch encourages interested donors to obtain a copy of the referenced documents so that they may view the information in context. Please contact the charity directly to request a copy of any referenced document. Charity tax forms and audits may also be obtained from a number of online databases. For a list of sources, please visit our LINKS page.
|CharityWatch's rating of Direct Relief & Direct Relief Foundation is based on the organization's audited consolidated financial statements for the fiscal year ended June 30, 2016, which also include the financial activities of the wholly owned subsidiaries of Direct Relief, Direct Relief International-South Africa and Direct Relief-Mexico.|
According to Note 1 of the Direct Relief fiscal 2016 consolidated audit: Direct Relief International-South Africa was registered in South Africa as a public benefit corporation in October 2007 and began operations in the Republic of South Africa on July 1, 2009; and Direct Relief-Mexico was registered in Mexico as a public benefit corporation in July 2014 and began operations in Mexico on August 1, 2014.
|According to the Direct Relief consolidated audit of June 30, 2016 (Note 12, Concentration Risk):|
"The Organization received 54% of total public support from three corporate donors during the year ended June 30, 2016..."
|According to the Direct Relief audited Consolidated Statement of Activities for the year ended June 30, 2016, Direct Relief received total contributed goods and services valued at approximately $749.5 million in fiscal 2016, including approximately $746.7 million in donated pharmaceuticals, medical supplies and equipment.|
[Note: CharityWatch generally excludes the value of in-kind (non-cash) donations of goods and services from its calculations of Program % and Cost to Raise $100. More information on how grades are calculated and the treatment of in-kind donations can be found by clicking on "About CharityWatch" from the navigation bar and then clicking on "Criteria & Methodology".]
|According to the Direct Relief consolidated audit of June 30, 2016 (Note 14, Subsequent Events):|
"On August 5, 2016 the LLC [DR Property 1] purchased a 7.99 acre parcel of land for the purpose of building a new facility. On August 2, 2016, Direct Relief secured a $25M line of credit as bridge financing for this construction project. The line of credit bears interest at the bank's LIBOR rate plus 1.20% from August 2016 through July 2019 and the bank's LIBOR rate plus 1.50% from August 2019 through August 2021. The line of credit matures in August 2021 and is secured by all assets of the Organization."