BBP or Texas can confirm that for you. My understanding is that the site gives Freeroll money to Forums to build a regular player base. It's the greatest thing since Wet T-Shirt Contests in my mind.
Titan seems to have the best (or most) Freerolls and they are very Forum friendly. It really shows you how profitable / competitive these online sites are.
I laugh now when I see those Prima Freerolls at 8am ET. $200 with 5000 entrants. The odds of making the money (whopping $1.40) are next to nil.
The same goes for the
Party Poker Freerolls. It takes about 5-6 hours to make it to the money in their 1000+ person Freerolls. Not for me no mo'.