Direct Relief & Direct Relief Foundation

CharityWatch's rating of Direct Relief & Direct Relief Foundation also includes the financial activities of Direct Relief International–South Africa and Direct Relief–Mexico, which are wholly owned subsidiaries of Direct Relief that are consolidated in the Direct Relief and Affiliates audited financial statements for the fiscal year ended June 30, 2021. All significant balances and transactions among the entities have been eliminated in the audit consolidation.

According to the Direct Relief and Affiliates fiscal 2021 consolidated audit (Note 1, Organization), 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. 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 & Affiliates audited Consolidated Statement of Activities for the year ended June 30, 2021, Direct Relief received in-kind contributed goods and services on which it placed a total value of approximately $1,754,795,000. Of this amount, approximately $1,750,554,000 consisted of 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 on the Our Process page.]

According to the Direct Relief (DR) tax filing for the fiscal year ended June 30, 2021, DR reports re: Grants or Assistance Benefiting Interested Persons, cash assistance for disaster relief in the amount of $65,000 provided to Thomas Tighe, CEO (IRS Form 990, Schedule L, Part III). Related to the transaction, DR reports as supplemental information (Schedule L, Part V):

"On December 22, 2020, the board of directors of Direct Relief approved disaster relief payments pursuant to IRC Section 139 to Thomas Tighe, the Organization's CEO, after Tighe's personal residence was destroyed in a mudslide resulting from a wildfire – all of which was a federally declared natural disaster. Payments to Tighe totalled [sic] $65,000 in FY2021, and only represented amounts that were not otherwise covered by insurance)."

According to the Direct Relief & Affiliates consolidated audit of June 30, 2021 (Note 11, Concentration of Credit Risk):

"...[T]he Organization's investments are exposed to various risks, such as interest rate fluctuations and market valuations. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect the Organization's [audited] consolidated statements of financial position and activities."

According to the Direct Relief & Affiliates consolidated audit of June 30, 2021 (Note 2 re: Risks and uncertainties):

"In March 2020, the World Health Organization declared COVID-19, the novel coronavirus, a global pandemic. COVID-19 has caused significant volatility and disruption to the global economy. Management has been closely monitoring the effect of COVID-19 on the Organization's operations. Direct Relief does not foresee any increased risk related to the ability to collect outstanding receivables and holds sufficient cash reserves for its operations, which will help offset any investment or revenue volatility. The duration and impact of COVID-19 on the Organization is unknown."