Forbes Magazine Lists Direct Relief International Among Top U.S. Charities for Efficiency
California Non-Profit One of Only 12 U.S. Organizations to Receive 100% Efficiency Rating

SANTA BARBARA, CA (December 07, 2004)  Direct Relief International is one of only twelve U.S. charitable organizations to receive a 100% fundraising efficiency rating by the Forbes Magazine annual survey of major U.S. charities. The Forbes list, published in part in the December 13, 2004, “2005 Investment Guide” special issue and fully on the Forbes website, consists of 200 of the leading nonprofit organizations in the United States.

The article notes that Forbes calculates three “efficiency ratios” -- charitable commitment, fundraising efficiency, and donor dependency. Charitable commitment shows how much of total expenses went for the charitable purpose, excluding management, overhead and fundraising; fundraising efficiency indicates the share of gifts less fundraising expenses; and donor dependency calculates how much of gifts was needed to make ends meet. The average fundraising efficiency rating for organizations on this year’s list was 89%. Direct Relief is the only California-based international medical relief organization to receive a 100% rating for fundraising efficiency on the Forbes list, and one of only 11 on the entire list to receive a 99% or higher rating for charitable commitment.

"We are pleased that Forbes’s analysis has again found Direct Relief to be in the top tier for efficiency and commitment among all U.S. nonprofits," said Direct Relief International President and CEO Thomas Tighe. “The recognition is gratifying, and it is particularly reassuring to the people who generously invest in our work.”

Direct Relief International provides humanitarian medical material assistance to people in developing countries and areas hit by natural disaster or civil strife. In 2003, the year covered by the Forbes survey, Direct Relief’s cash operating expenses were slightly more than $3 million. With these funds, the organization provided more than $94 million (wholesale value) in medicines, supplies and equipment to health projects in 61 countries. For each dollar spent, the organization was able to provide over $30 in wholesale medical material assistance. Direct Relief provided extensive emergency response following war, conflicts, and medical epidemics in Iraq, El Salvador, Haiti, Liberia and Democratic Republic of Congo, and continued to respond to the humanitarian crisis in Afghanistan. The organization also provided material support to hundreds of local clinics serving low-income people in Africa, Latin America and the Caribbean, Asia, and Eastern Europe. Direct Relief also serves people in its southern California home communities, with special focus on the dental needs of low-income and children and emergency preparedness programs for vulnerable populations and schools. Direct Relief is part of the State of California and regional disaster-response networks.

Direct Relief is a licensed wholesale pharmacy and relies on material donations of pharmaceutical products, supplies, and equipment, from healthcare companies and health facilities. Through the first nine months of 2004, Direct Relief has furnished to 52 countries over $60 million in wholesale material aid to care for more than 11 million patients. In recent months Direct Relief has provided support to local health facilities in sub-Saharan Africa, Nicaragua, and in response to flood and hurricane disasters in Haiti and the Caribbean.

Direct Relief traditionally maintains among the lowest expense ratios for fundraising and administration of all U.S. charities – under 3% for each of the past six years, and under one percent during 1999 each of the past three years.

"Thanks to the tremendous support of healthcare companies with product donations, we can help a lot of people who need it with a relatively small amount of money,” said Tighe. “We hope that Forbes and other independent evaluators’ top ratings inspire more people to support our work. Everyone's best interest is served if fundraising expenses are as small as possible to receive the operating funds necessary.”

Direct Relief International
Founded in 1948 by two immigrant businessmen, Direct Relief International is a non-profit, non-sectarian humanitarian assistance organization based in Santa Barbara, California. For 56 years, Direct Relief has provided medical material assistance in the form of pharmaceuticals, supplies, and new and refurbished medical equipment to over 3,000 charitable health facilities worldwide and within the United States. In 2003, the organization provided more than $94 million (wholesale value) in medicines, supplies and equipment to health projects in 62 countries, enough provisions to keep hundreds of local health professionals and clinics productively engaged and provide full courses of medical treatment for over 10 million people. Direct Relief was ranked by Consumers Digest as one of only five of the leading U.S. charitable organizations evaluated to receive 99% or better efficiency ranking in their 2003 survey of major U.S. charities. Worth Magazine named Direct Relief among “America’s Best 100 Charities” in its December 2001/January 2002 edition, and The Chronicle of Philanthropy continues to rank Direct Relief as the largest private international relief organization in California. The organization’s website is www.directrelief.org.

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