BWF is administered by the East Tennessee Foundation which identifies (and vets) organizations looking for assistance. They help BWF get money to where it can do the most good.
Some of the organizations helped include; Doctors Without Borders, the American Red Cross. Head Count, MusiCares, Boys and Girls Club of America, Habitat for Humanity ,Rock the Earth and the Sierra Club and others. Assistance has also been provided for disaster relief in the USA and abroad—help for victims of Hurricane Katrina, the Haitian earthquake, the recent floods in Nashville and during the Gulf oil spill.
Good for Bonnaroo. Other festivals like this should do more as well.