The Direct Relief Foundation was established in 2007 after a bequest was received in recognition of the long-term benefit the funds could provide to the organization. Direct Relief Foundation enables these funds to be managed separately, with a long-term view, but also to be available when needed at the discretion of the Board of Directors of Direct Relief, who also serve on the Board of the Direct Relief Foundation.
Because the Direct Relief Foundation is a supporting organization of Direct Relief and a separate legal entity, the law requires that its finances be managed, audited, and reported separately in the Form 990. However, the financial activity of the Direct Relief Foundation has to be consolidated in the financial statements of Direct Relief, in accordance with U.S. Generally Accepted Accounting Principles.
The Direct Relief Foundation is a “type 1” 509(a)(3) supporting organization. Other common examples of supporting organizations of this type are university endowments and groups organized to support essential work of community hospitals. Click here for more information on supporting organizations from the IRS website.