THE YEAR IN REVIEW FY 20 15 ANNUAL REPORT FISCAL YEAR 2015 ANNUAL REPORT 27 S. La Patera Lane, Santa Barbara, CA 93117 T: 805-964-4767 | TOLL-FREE: 800-676-1638 F: 805-681-4838 | DirectRelief.org BOARD OF DIRECTORS CHAIR John Romo VICE CHAIR Rita Moya SECRETARY Lawrence Dam ASSISTANT SECRETARY Mari Mitchel TREASURER J. Michael Giles >Ob`WQWO/]gO[O9S\ROZZ0WaV]^ AVO`]\0`ORT]`R2OdWR/0`]e\ TABLE OF CONTENTS OUR MISSION :Sa1VO`ZSa>Obbg2S2][W\WQ IS TO IMPROVE THE 2O\bS2W:]`Sb]>Ob`WQY3\bV]dS\ >Ob`WQY4WbhUS`OZR6]\>OcZ54Zg\\ HEALTH AND LIVES 5`SUU:4]abS`2]`]bVg65O`R\S` OF PEOPLE AFFECTED 3`\Sab85Sbb]2OdWR:SS5WPPa>V2 :W\RO85ZcQY0S`b5`SS\;2 03 24 BY POVERTY OR 3ZWhOPSbV5`SS\/\USZ7aQ]dWQV;2 Message from the Board Chair Combined Statement 8]O\\O9S`\a<O\QgEOZYS`9]^^SZ[O\ EMERGENCY and the President & CEO of Activities ;O`Y:W\SVO\8SO\\S<Se[O\ SITUATIONS BY 8cZWS@OPW\]dWbh0O`PO`O<@cPW\ ;O`YAQVeO`bh;O`g:]cWaSAQcZZg;2 MOBILIZING 5S]`USAV]`b5O`gB]PSgAbSdS\/ESW\b`OcP 04 26 The Year in Review Notes to the Financials AND PROVIDING INTERNATIONAL ADVISORY BOARD ESSENTIAL MEDICAL 31O`[OQY6]Z[Sa;2A@]US`6]`QV]e 18 32 RESOURCES NEEDED 2]\OZR3>SbS`aS\8]V\EAeSSbZO\R Expanding Access & Quality Health Care Investors FOR THEIR CARE. CHAIR EMERITI BV][Oa81caOQY@WQVO`R5]RT`Sg Right: Mother and daughter receive care at the Direct Relief-supported 20 48 AbO\ZSg16ObQV2]`]bVg4:O`UOg>V2 Santa Barbara Neighborhood Clinics in Santa Barbara, California. Introduction & Certification of Guiding Principles 2S\WaAO\O\<O\Qg0AQVZ]aaS` >6=B=(/<2@3EA16=<303@53@ Financial Statements Cover:/<S^OZWTO[WZgU`SSbaOE]`ZR4]]R>`]U`O[[SVSZWQ]^bS` >@3A723<B3;3@7BCAAgZdWO9O`QhOU OaWbRSZWdS`a2W`SQb@SZWST[SRWQOZac^^ZWSab]O\SO`bV_cOYSOTTSQbSR PRESIDENT & CEO Thomas Tighe Himalayan village. >6=B=(97<59/3E0C/B==; FISCAL YEAR 2015 ANNUAL REPORT 2 MESSAGE FROM THE BOARD CHAIR AND THE PRESIDENT + CEO e are pleased to share Direct Relief’s annual report Distributor in the U.S. and licensed to distribute prescription for Fiscal Year 2015, during which Direct Relief was medications in all 50 U.S. states. Direct Relief’s ongoing Wagain able to respond more expansively than ever commitment to meet the highest standards with regard before to requests for humanitarian assistance. to inventory handling, storage, tracking, and distribution As has been the case since Direct Relief’s founding in have been essential to the continued, expanding efforts 1948, all the organization’s humanitarian activities occurred to support patients at U.S. community health centers and only because of the generosity, participation, and support clinics, including during emergencies. But the benefits of the businesses, individuals, and organizations listed in this of efficient, transparent systems to meet stringent U.S. report. On behalf of the board and staff of Direct Relief, we standards extend to all Direct Relief’s international are deeply grateful for the inspiring generosity demonstrated activities as well. This fiscal year, the organization formally each day and to have the privilege of seeing how it translates established Direct Relief Mexico and began leveraging into meaningful assistance for people facing hardship or crisis. these systems to assist people and partner organizations The fiscal year was marked by two major humanitarian in Mexico more expansively and efficiently by providing crises—the Ebola outbreak in West Africa and the devastating medications and supplies from within the country, a trend Nepal earthquakes—that led to the largest-scale efforts in that will be increasingly important globally in the years the organization’s 67-year history. In both instances, Direct ahead. Relief’s rapidly scaled efforts were undertaken only because Among other advances over the course of the year of pre-existing partnerships with key organizations in the was the expanded partnership with the International affected countries. This, in turn, resulted in Direct Relief Confederation of Midwives (ICM), which helped develop being among the world’s largest providers of humanitarian and formally approve as a global standard the Direct material aid to help people in Nepal, Liberia, and Sierra Leone Relief Midwife Kit, 500 of which have now been furnished impacted by these devastating events. to midwives in Africa and Asia who have safely delivered In part because of the massive efforts devoted to 25,000 babies. emergencies, the measures of Direct Relief’s support and Fiscal Year 2015 showed once again that what seems assistance grew substantially during the fiscal year. The like a sharp distinction between Direct Relief’s emergency- organization provided more assistance than ever before: response activities and ongoing efforts to strengthen care $610 million of support in the form of humanitarian medical for vulnerable people is often a false one. Those who are material aid, delivering over 1,800 tons of medications, most vulnerable in obvious emergencies, such as the Ebola vaccines, and supplies—each requested and approved— outbreak or Nepal earthquakes, are the same people who through 7,213 deliveries to partner organizations in all 50 U.S. were vulnerable immediately before. That’s why Direct Relief states and more than 70 countries worldwide. remains committed to supporting the partners and the In addition, Direct Relief provided financial assistance to people on an ongoing basis—so their health and lives are several partner organizations in the form of direct cash grants less vulnerable, and they can enjoy the wonders of life and and awards totaling $2.6 million for a variety of emergency- reach their inherent potential. related recovery and rebuilding efforts internationally and, Thank you for being part of Direct Relief and this in the U.S., to community health centers and clinics doing important effort. innovative preventive, care, and treatment programs for vulnerable persons in their communities. Direct Relief’s expanded efforts in emergencies and on a day-to-day basis were enabled by significant progress on long-term efforts to strengthen the organization’s operating capacity, efficiencies, and reach, as well as strategic partnerships with both businesses and colleague organizations. The organization again earned the distinction it first A girl being cared for at earned in 2009 as the only nonprofit organization to the Direct Relief-supported JOHN ROMO THOMAS TIGHE Wellbody Alliance Clinic in receive accreditation as a Verified Accredited Wholesale Board Chair President & CEO Kono, Sierra Leone. PHOTO: WILLIAM VAZQUEZ 2 FISCAL YEAR 2015 ANNUAL REPORT FISCAL YEAR 2015 ANNUAL REPORT 3 FY 20 15 ANNUAL THE REPORT YEAR IN REVIEW You may be familiar with the adage “the urgent displaces the important.” The events of Fiscal Year 2015 (July 1, 2014 through June 30, 2015) challenged that preconception, from the outset with the Ebola outbreak in West Africa to the April earthquake in Nepal, the urgent rather shaped the important. These momentous fiscal-year bookends—neither anticipated in the operating plan nor any budget— prompted the largest-ever responses mounted by Direct Relief, including the unprecedented September 2014 chartering of a 747 aircraft dedicated entirely to getting aid to people combatting Ebola when alternatives were nonexistent. At the 2015 Annual Meeting of the Clinton Global Initiative, President Clinton noted the effort as “the largest private aid delivery ever organized.” By the fiscal-year end, four such charters had been deployed by Direct Relief—once again to Sierra Leone and Liberia, and three times to Nepal (two of which FedEx generously donated). Direct Relief is the largest provider of medical material aid to both crises—not because that was a goal but rather for the simple reasons that assistance was needed and Direct Relief was able to mobilize the resources. These events also spurred significant public financial support and visibility, while requiring extensive programmatic adjustments to respond to very particular, critically-important needs. Direct Relief’s efforts were among many conducted by numerous groups and governments, but they earned high Clockwise from top: An emergency airlift of essential medical supplies to fight Ebola marks and heightened credibility from the public, nonprofit rating agencies, affected countries, partner departs for West Africa (PHOTO: WILLIAM organizations, and the UN and other international institutions. In urgent matters, Direct Relief responded VAZQUEZ); An emergency medical team deployed to the Philippines after Typhoon at a greater scale than ever before in its 67-year history. Haiyan with Direct Relief’s emergency medical pack (PHOTO: TEAM RUBICON); A doctor with the Direct Relief-supported CHEERS response organization treats a boy shortly after the earthquake in Nagarkot, Nepal (PHOTO: IVAN CASTANEIRA). 4 FISCAL YEAR 2015 ANNUAL REPORT FISCAL YEAR 2015 ANNUAL REPORT 5 THE YEAR IN REVIEW Direct Relief’s largest single shipment in its 67-year history: 100 tons of medical aid being loaded, en route to medical partners in Liberia and Sierra Leone responding to the crisis. ranked Direct Relief among the 10 M OST I N N O VA T I V E N O N P R O F I T S I N 2 0 1 5 for its use of mapping technology in response to the Ebola outbreak FIGHTING in Liberia & Sierra Leone. “The Direct Relief shipment was absolutely EBOLA critical, as we were almost out of our existing stock of gloves and gowns.” – R APHAEL F R A N K F U R T E R , Executive Director, f the many severe, chronic health problems Direct Relief’s ORAIN WELLBODY ALLIANCE, LLIANCE longtime partners in West Africa were seeking to address M A WHAT IS Sierra Leone at the beginning of 2014, the Ebola virus was not among ONY O T them. The countries were deep into dedicated efforts to expand EBOLA? ELLBODY and improve health services for people and build back health W Ebola is an infectious and often fatal OF disease that results in fever and severe systems decimated by civil wars that ended a decade ago.