2015-06-22T16:06:26-05:00 2014-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2014-01-01 237327730 THE HERITAGE FOUNDATION HERI 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 JAMES W DEMINT PRESIDENT 2025464400 2015-06-22 1 WILLIAM E TURCO CPA P00369217 3012963600 2014 2016-04-25 22:37:26Z JAMES W DEMINT 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 115176874 0 X WWW.HERITAGE.ORG X 1973 DC TO FORMULATE AND PROMOTE CONSERVATIVE PUBLIC POLICIES BASED ON THE PRINCIPLES OF FREE ENTERPRISE, LIMITED GOVERNMENT, INDIVIDUAL FREEDOM, TRADITIONAL AMERICAN VALUES, AND A STRONG NATIONAL DEFENSE. 24 21 570 35 0 0 102174419 94567106 601313 565920 8599911 384543 1314504 1452337 112690147 96969906 135810 176547 0 0 36923872 38060648 3225073 2709584 17918411 39876980 41160542 80161735 82107321 32528412 14862585 238662795 261045873 44412132 43904197 194250663 217141676 X TO FORMULATE AND PROMOTE CONSERVATIVE PUBLIC POLICIES BASED ON THE PRINCIPLES OF FREE ENTERPRISE, LIMITED GOVERNMENT, INDIVIDUAL FREEDOM, TRADITIONAL AMERICAN VALUES, AND A STRONG NATIONAL DEFENSE. 0 0 29131618 134411 565920 (SEE SCHEDULE O)EDUCATIONAL PROGRAMS:THE HERITAGE FOUNDATION ("THF" OR "THE FOUNDATION") HOSTS EVENTS AND SPONSORS PROGRAMS TO EDUCATE GOVERNMENT OFFICIALS, THE ACADEMIC COMMUNITY, JOURNALISTS, AND THE GENERAL PUBLIC ON TOPICS RANGING FROM THE FOUNDING FATHERS AND CIVIL SOCIETY TO POLITICAL PHILOSOPHY AND LEGAL PRINCIPLES. IN 2014, THF'S LECTURES AND SEMINARS PROGRAM PRODUCED 212 PUBLIC EVENTS ATTRACTING 12,993 ATTENDEES. THF'S RESOURCE BANK CONFERENCE DRAWS ROUGHLY 500 CONSERVATIVE POLICY EXPERTS, ACTIVISTS, CONGRESS MEMBERS, AND DONORS FOR THREE DAYS OF WORKSHOPS AND DISCUSSIONS. THF'S INTERN PROGRAM PROVIDED 189 YOUNG PEOPLE AN INVALUABLE WORK-STUDY EXPERIENCE IN WASHINGTON, DC. THF'S FELLOWSHIP PROGRAMS HOSTED OVER 50 EVENTS, ATTRACTING MEMBERS OF ALL PROFESSIONAL LEVELS ON CAPITOL HILL. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2014 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 24007467 1000 (SEE SCHEDULE O)PUBLIC POLICY RESEARCH:THE HERITAGE FOUNDATION PRODUCES HUNDREDS OF RESEARCH PAPERS ANNUALLY, INCLUDING ISSUE BRIEFS, BLOG POSTS, FACT SHEETS, BACKGROUNDERS, GUIDES, AND BOOKS ADDRESSING A BROAD RANGE OF ECONOMIC, DOMESTIC, DEFENSE, FOREIGN, AND SOCIAL POLICY ISSUES. THESE PUBLICATIONS ANALYZE BOTH CURRENT PUBLIC POLICIES AND ALTERNATIVE POLICY RECOMMENDATIONS FOR SUBSTANCE AND MERIT. THE RESULTS OF OUR RESEARCH ARE AVAILABLE IN PRINT FORMAT AND AT NO CHARGE THROUGH OUR WEBSITE, WHICH IS VISITED BY MILLIONS. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2014 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 8516406 41136 (SEE SCHEDULE O)MEDIA AND GOVERNMENT RELATIONS:THE HERITAGE FOUNDATION DISTRIBUTES ITS RESEARCH PRODUCTS TO MEMBERS OF CONGRESS, CONGRESSIONAL STAFF, POLICYMAKERS IN THE EXECUTIVE BRANCH OF THE FEDERAL GOVERNMENT, STATE OFFICIALS, JOURNALISTS, MEMBERS OF THE ACADEMIC COMMUNITY, OTHER NON-PROFIT ORGANIZATIONS, THE GENERAL PUBLIC, AND DONORS. THE HERITAGE FOUNDATION CONDUCTS HUNDREDS OF BRIEFINGS FOR DOMESTIC AND INTERNATIONAL OFFICIALS, POLICYMAKERS, EXPERTS, AND LAWMAKERS AND THEIR STAFF ON ISSUES RANGING FROM FEDERAL SPENDING AND UNFUNDED LIABILITIES TO HOMELAND SECURITY, TAX, AND HEALTH POLICY. THF'S ANALYSTS MADE OVER 2,800 RADIO AND TELEVISION APPEARANCES IN 2014, AND EARNED ROUGHLY 1,400 OP-ED PLACEMENTS IN MAJOR PRINT AND ONLINE MEDIA OUTLETS. THF SENT OUT A DAILY NEWSLETTER, "THE MORNING BELL," TO OVER 470,000 SUBSCRIBERS, AND PUBLISHED HUNDREDS OF ARTICLES THROUGH THE FOUNDATION'S DIGITAL NEWS PUBLICATIONS. THE FOUNDATION ALSO CONDUCTS IN-DEPTH ISSUES-RELATED SEMINARS FOR MEMBERS OF THE MEDIA, ADDRESSING TOPICS SUCH AS HEALTHCARE AND HOMELAND SECURITY. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2014 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 61655491 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 1 X 179 0 1 570 1 1 0 0 0 0 0 0 0 0 0 0 X 24 21 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AK AL AR CA CO CT DC FL GA HI IL KS KY MA MD ME MI MN MS NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WI WV X X WILLIAM BRET BERNHARDT 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 THOMAS A SAUNDERS III CHAIRMAN 2.00 X X 0 0 0 RICHARD M SCAIFE VICE CHAIRMAN (UNTIL 7/14) 2.00 X X 0 0 0 J FREDERIC RENCH SECRETARY (UNTIL 3/14) 2.00 X X 0 0 0 JAMES W DEMINT PRESIDENT 40.00 X X 899512 0 56283 PHILLIP N TRULUCK EXECUTIVE VICE PRESIDENT 40.00 X X 806690 0 78168 EDWIN J FEULNER JR FOUNDER, TRUSTEE 8.00 X 369372 0 0 MEG ALLEN TRUSTEE 2.00 X 0 0 0 DOUGLAS F ALLISON TRUSTEE (UNTIL 3/14) 2.00 X 0 0 0 LARRY P ARNN PHD TRUSTEE 2.00 X 0 0 0 THE HONORABLE BELDEN H BELL TRUSTEE 2.00 X 0 0 0 MIDGE DECTER TRUSTEE 2.00 X 0 0 0 MALCOLM STEVENSON FORBES JR TRUSTEE 2.00 X 0 0 0 TODD W HERRICK TRUSTEE 2.00 X 0 0 0 WILLIAM J HUME TRUSTEE 2.00 X 0 0 0 KAY COLES JAMES TRUSTEE 2.00 X 0 0 0 HON J WILLIAM MIDDENDORF II TRUSTEE 2.00 X 0 0 0 ABBY MOFFAT TRUSTEE 2.00 X 0 0 0 NERSI NAZARI PHD TRUSTEE 2.00 2.00 X 0 0 0 ROBERT PENNINGTON TRUSTEE 2.00 X 0 0 0 ANTHONY J SALIBA TRUSTEE 2.00 X 0 0 0 WILLIAM E SIMON JR TRUSTEE 2.00 X 0 0 0 BRIAN TRACY TRUSTEE 2.00 X 0 0 0 BARB VAN ANDEL-GABY TRUSTEE 2.00 X 0 0 0 MARION WELLS TRUSTEE 2.00 X 0 0 0 JOHN VON KANNON VP & SENIOR COUNSELOR 40.00 X 321238 0 68187 DAVID ADDINGTON GROUP VP, RESEARCH 40.00 X 308817 0 41268 GEOFFREY J LYSAUGHT GROUP VP, STRATEGIC COMMUNICATIONS 40.00 1.00 X 293124 0 60571 EDWARD CORRIGAN GROUP VP, POLICY PROM. (AS OF 4/14) 40.00 X 262411 0 34612 WILLIAM BRET BERNHARDT SVP (AS OF 4/14) & CHIEF OF STAFF 40.00 X 259374 0 35988 JOHN FOGARTY GROUP VP, DEVELOPMENT 40.00 X 258819 0 57120 JAMES CARAFANO VP, INTERNATIONAL STUDIES 40.00 X 254227 0 36993 DERRICK MORGAN VP, DOMESTIC & ECONOMIC POLICY 40.00 X 237086 0 43184 BECKY NORTON DUNLOP VP, EXTERNAL RELATIONS 40.00 X 231881 0 45232 JOHN MITNICK SVP, GEN COUNSEL & SECY (AS OF 3/14) 40.00 X 193437 0 15840 MICHAEL GONZALEZ VP, COMMUNICATIONS (UNTIL 4/14) 40.00 X 252292 0 58211 GENEVIEVE WOOD VP, MARKETING (UNTIL 4/14) 40.00 X 238672 0 43712 KIM HOLMES DISTINGUISHED FELLOW 40.00 X 261098 0 66424 WESLEY DENTON VP, COMMUNICATIONS (AS OF 4/14) 40.00 X 210075 0 42357 STUART BUTLER DISTINGUISHED FELLOW (UNTIL 9/14) 40.00 X 206745 0 17208 RICHARD MILLER DIRECTOR, CENTER FOR TRADE & ECON 40.00 X 199701 0 20331 JAMES TALENT DISTINGUISHED FELLOW (UNTIL 11/14) 40.00 X 171481 0 1098 6236052 0 822787 98 0 1 0 BLACKBAUD 2000 DANIEL ISLAND DRIVE CHARLESTON SC 294927541 SOFTWARE DEVELOPMENT 2636738 MERKLE RESPONSE SERVICES INC 100 JAMISON COURT HAGERSTOWN MD 21740 MAILING CONTACT MGMT 1477147 GIVE RIGHT INC 375 N STEPHANIE 14 HENDERSON NV 89014 MARKETING & FUNDRAISING 1402961 CONRAD DIRECT INC 300 KNICKERBOCKER RD CRESSKILL NJ 07626 MAILING CONTACT MGMT 1285616 CORPORATE PRESS INC 9700 PHILADELPHIA CT LANHAM MD 20706 PRINTING 904836 53 94567106 1219054 94567106 INTERN HOUSING REVENUE 531110 462298 462298 PUBLICATION SALES 511190 103622 103622 565920 201760 201760 107602 107602 757609 1049517 -291908 -291908 -291908 17340234 15502869 1654582 1837365 -1654582 182783 182783 OTHER INCOME 900099 1636643 1636643 1636643 96969906 565920 0 1836880 164047 164047 12500 12500 5077430 4144899 111586 820945 25654813 21048342 570510 4035961 1316211 1003511 20756 291944 4071472 3429848 126756 514868 1940722 1480088 32155 428479 220380 175533 34057 10790 93817 72326 3424 18067 2709584 2709584 1074673 1074673 7748333 6922270 100697 725366 1528497 1170888 970 356639 14991415 10374044 39256 4578115 2360914 1776770 12609 571535 2455671 1848302 82748 524621 2030172 1259600 42552 728020 3492346 2968833 54745 468768 225153 92610 105600 26943 3410040 2584965 73054 752021 299897 230292 33546 36059 BOOKS & PRODUCTS 499487 428710 7313 63464 HONORARIA/WRITER'S FEES 347132 125446 4221 217465 DUES & SUBSCRIPTIONS 341253 324957 1082 15214 OTHER EXPENSES 41362 16710 1109 23543 82107321 61655491 2533419 17918411 X 14542519 11833584 0 2708935 310 4334 7037765 17519750 9579251 17469963 49716 95 663745 271320 93169468 32594814 62204027 60574654 7389913 2041400 150967673 161850493 770395 1313864 238662795 261045873 9621002 8826553 18457133 17953381 16333997 17124263 44412132 43904197 X 150802206 170238453 40048457 43503223 3400000 3400000 194250663 217141676 238662795 261045873 X 14862585 9900857 -1872429 X 0 1 X 1 0 X 73957186 65687562 78190250 102174419 94567106 414576523 73957186 65687562 78190250 102174419 94567106 414576523 17248402 397328121 2413048 2375072 3757095 1466865 1066971 11079051 362539 705479 763919 1205751 1636643 4674331 430329905 1928224 0.92330 0.91690 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 82107321 82107321 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 250000 250000 250000 250000 1000000 1500000 139864017 720962 11063155 5507719 908710 145231705 100139675 31480469 13703313 5047829 411611 139864017 93474227 2291747 11893390 7073016 446673 100139675 103029082 5399117 -8220145 6348137 385690 93474227 93848790 3841751 13525612 7859847 327224 103029082 0.79170 0.02340 0.18490 0 0 12065438 12065438 68880436 23329340 45551096 8781369 6553814 2227555 3442225 2711660 730565 60574654 INVESTMENTS IN MUTUAL FUNDS & LP'S 142077003 F TRUSTS & ANNUITIES 19773490 F 161850493 DEFERRED COMPENSATION PLANS 2343695 SPLIT-INTEREST AGREEMENTS 13526999 INTEREST RATE SWAP 1253569 17124263 X 104973178 9900857 -1872429 8028428 96944750 1074673 -1049517 25156 96969906 82082165 1049517 1049517 81032648 1074673 1074673 82107321 PART V, LINE 4: THE LONG-TERM INVESTMENT FUND, CONSISTING OF MULTIPLE FUNDED PROGRAMS, GENERAL BOARD DESIGNATED FUNDS, AND OPERATING RESERVES, HAS BEEN ESTABLISHED IN ORDER TO SUPPORT THE GROWTH AND OPERATIONS OF THE HERITAGE FOUNDATION ("THE FOUNDATION"). THE INVESTMENTS IN THE FUND WILL BE MADE FOR THE EXCLUSIVE BENEFIT OF THE FOUNDATION. INDIVIDUAL DONOR-RESTRICTED FUNDS WILL BE GOVERNED BY THE TERMS OF THEIR GOVERNING PLAN DOCUMENTS. SEPARATE ACCOUNTING IS MAINTAINED FOR EACH FUND. FUNDS ARE USED ANNUALLY TO SUPPORT PROGRAMS IN ACCORDANCE WITH THE FOUNDATION'S SPENDING POLICY OR AS STIPULATED BY THE DONOR(S). THE LONG-TERM FUND INCLUDES A PERMANENT FUND, ESTABLISHED BY THE BOARD OF TRUSTEES, WITH THE MAIN OBJECTIVE OF LONG-TERM GROWTH OF CAPITAL IN ACCORDANCE WITH DONOR WISHES. THE PERMANENT FUND IS INCLUDED IN THE CALCULATION OF ANNUAL DRAWS USED TO SUPPORT THE OPERATIONS OF THE FOUNDATION. PART X, LINE 2: THE FOLLOWING IS THE FIN 48 (ASC 740) FOOTNOTE CONTAINED IN THE HERITAGE FOUNDATION'S ("THE FOUNDATION") CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014: THE HERITAGE FOUNDATION IS A NOT-FOR-PROFIT ORGANIZATION EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(A). AS AN ENTITY DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. CONTRIBUTIONS TO THE HERITAGE FOUNDATION ARE DEDUCTIBLE FOR FEDERAL INCOME, ESTATE, AND GIFT TAX PURPOSES. INCOME, WHICH IS NOT RELATED TO EXEMPT PURPOSES, IS SUBJECT TO TAX. 3RD STREET PROPERTIES, LLC, MASSACHUSETTS AVENUE PROPERTIES, LLC, AND INTERN HOUSING, LLC, ARE LIMITED LIABILITY COMPANIES WHOSE SOLE MEMBER IS THE HERITAGE FOUNDATION. CONSEQUENTLY, 3RD STREET PROPERTIES, LLC, MASSACHUSETTS AVENUE PROPERTIES, LLC, AND INTERN HOUSING, LLC, ARE DISREGARDED ENTITIES FOR FEDERAL AND STATE INCOME TAX PURPOSES. THE FOUNDATION FOLLOWS THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE FOUNDATION MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED THE FOUNDATION'S TAX POSITION AND CONCLUDED THAT THE FOUNDATION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISION OF THIS GUIDANCE. GENERALLY, THE FOUNDATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED LOSS ON INTEREST RATE SWAPS -1,152,626. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -795,014. CHANGE IN VALUE OF EXECUTIVE LIFE INSURANCE POLICY 75,211. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES FROM RENTAL ACTIVITIES -1,049,517. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES FROM RENTAL ACTIVITIES 1,049,517. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 1141 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 51331 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 73695 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 7598 RUSSIA AND NEIGHBORING STATES 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 539 SOUTH AMERICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 7733 SOUTH ASIA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 12896 NORTH AMERICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 10042 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 630 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 6253069 0 0 0 0 0 0 164975 6253699 6418674 1 0 0 0 0 0 X X X X 1 ODELL SIMMS & ASSOCIATES 1593 SPRING HILL ROAD SUITE 450 TYSONS CORNER VA 22182 CONSULTANTS ON DIRECT MAIL PROGRAM 0 15814463 912225 14902238 GIVE RIGHT INC 375 N STEPHANIE 14 HENDERSON NV 89014 TELEMARKETING PROGRAMS & THANK YOU FOLLOW UPS 0 3564640 1350175 2214465 WARFIELD & WALSH INC 601 S WASHINGTON STREET ALEXANDRIA VA 223143004 CONSULTANTS ON DIRECT MAIL PROGRAM 0 2041465 240956 1800509 THE LUKENS COMPANY 2800 SHIRLINGTON ROAD 9TH FLOOR ARLINGTON VA 22206 CONSULTANTS ON DIRECT MAIL PROGRAM 0 257850 67309 190541 STEPHEN CLOUSE & ASSOCIATES 43538 GOLDEN MEADOW CIRCLE ASHBURN VA 20147 DIRECT MAIL MATERIALS PRODUCTION 0 0 136919 -136919 21678418 2707584 18970834 AK AL AR CO CT DC FL HI IL KS KY LA MA MD ME MI MS MO NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WI WV MN GA CA SCHEDULE G, PART I, LINE 2B, FUNDRAISING EXPENSES EXCLUDED FROM COLUMN (V) PROFESSIONAL FUNDRAISING PAYMENTS ARE DISTINGUISHED FROM EXPENSE PAYMENTS OR REIMBURSEMENTS PER THE INVOICES PROVIDED BY THE FUNDRAISER. NAME OF FUNDRAISER: ODELL, SIMMS & LYNCH, INC. POSTAGE: $7,128 PRINTING: $15,779 NAME OF FUNDRAISER: GIVE RIGHT, INC POSTAGE: $22,217 PRINTING: $15,505 EVENT EXPENSES: $4,110 NAME OF FUNDRAISER: WARFIELD & WALSH, INC. POSTAGE: $52,200 PRINTING: $46,702 1 CAPITOL HILL BUSINESS IMPROVEMENT DISTRICT (CHBID) 30 MASSACHUSETTS AVE NE WASHINGTON DC 20002 522232461 501(C)(6) 40886 CLEANING, SAFETY, AND BEAUTIFICATION PROGRAMS IN THE CAPITOL HILL COMMUNITY DUKE UNIVERSITY CENTER FOR THE HISTORY OF POLITICAL ECONOMY ECONOMICS DEPT 419 CHAPEL DRIVE DURHAM NC 27708 560532129 501(C)(3) 10000 SPONSOR THE PUBLICATION OF A SERIES OF BOOKS CARSON SCHOLARS FUND INC 305 WEST CHESAPEAKE AVENUE NO 310 TOWSON MD 21204 521851346 501(C)(3) 32000 GENERAL OPERATIONS THE BECKET FUND 1200 NEW HAMPSHIRE AVE NW WASHINGTON DC 20036 521858532 501(C)(3) 10000 GENERAL OPERATIONS DONORSTRUST INC 1800 DIAGONAL ROAD SUITE 280 ALEXANDRIA VA 22314 522166327 501(C)(3) 12500 SALVATORI PRIZE FOR AMERICAN CITIZENSHIP THE PHILADELPHIA SOCIETY 11620 RUTAN CIRCLE JEROME MI 49249 366151680 501(C)(3) 10000 GENERAL OPERATIONS 5 2 SALVATORI PRIZE FOR AMERICAN CITIZENSHIP 1 12500 PART I, LINE 2: THE HERITAGE FOUNDATION ("THF") MAKES PERIODIC CONTRIBUTIONS, BUT IS NOT A GRANT-MAKING ORGANIZATION. THF'S CONTRIBUTIONS TO OTHER QUALIFYING ORGANIZATIONS IN 2014 COMPRISED APPROXIMATELY TWO TENTHS OF A PERCENT OF TOTAL ANNUAL EXPENSES. IF AN ORGANIZATION MAKES A GRANT REQUEST, THE REQUESTING ORGANIZATION IS RESEARCHED AND REVIEWED BY STAFF TO DETERMINE IF A GRANT ALIGNS WITH THF'S OBJECTIVES AND OVERALL MISSION. IF A GRANT IS AWARDED, IT MUST BE USED TO SUPPORT THOSE PURPOSES. THE GRANT AMOUNT IS THEN DETERMINED BY THE RELEVANT MANAGER AND AWARDED TO THE REQUESTING ORGANIZATION. PERIODIC REPORTS OF THE USE OF THE GRANT FUNDS BY THE GRANTEE ORGANIZATION ARE REQUIRED AS A CONDITION OF THE AWARD. X X X 1 1 X X X X X 0 0 0 0 0 0 0 1 0 JAMES W DEMINT PRESIDENT 488366 0 400150 0 10996 0 52000 0 4283 0 955795 0 0 0 PHILLIP N TRULUCK EXECUTIVE VICE PRESIDENT 411261 0 385300 0 10129 0 52000 0 26168 0 884858 0 0 0 EDWIN J FEULNER JR FOUNDER, TRUSTEE 192000 0 175000 0 2372 0 0 0 0 0 369372 0 0 0 JOHN VON KANNON VP & SENIOR COUNSELOR 213908 0 100300 0 7030 0 45400 0 22787 0 389425 0 0 0 DAVID ADDINGTON GROUP VP, RESEARCH 239195 0 67150 0 2472 0 38400 0 2868 0 350085 0 0 0 GEOFFREY J LYSAUGHT GROUP VP, STRATEGIC COMMUNICATIONS 227405 0 65150 0 569 0 37400 0 23171 0 353695 0 0 0 EDWARD CORRIGAN GROUP VP, POLICY PROM. (AS OF 4/14) 203635 0 58150 0 626 0 33400 0 1212 0 297023 0 0 0 WILLIAM BRET BERNHARDT SVP (AS OF 4/14) & CHIEF OF STAFF 202571 0 55100 0 1703 0 33400 0 2588 0 295362 0 0 0 JOHN FOGARTY GROUP VP, DEVELOPMENT 198092 0 60300 0 427 0 35400 0 21720 0 315939 0 0 0 JAMES CARAFANO VP, INTERNATIONAL STUDIES 211855 0 40300 0 2072 0 34951 0 2042 0 291220 0 0 0 DERRICK MORGAN VP, DOMESTIC & ECONOMIC POLICY 196541 0 40150 0 395 0 21751 0 21433 0 280270 0 0 0 BECKY NORTON DUNLOP VP, EXTERNAL RELATIONS 190596 0 38300 0 2985 0 34077 0 11155 0 277113 0 0 0 JOHN MITNICK SVP, GEN COUNSEL & SECY (AS OF 3/14) 182379 0 10100 0 958 0 0 0 15840 0 209277 0 0 0 MICHAEL GONZALEZ VP, COMMUNICATIONS (UNTIL 4/14) 202909 0 48300 0 1083 0 35235 0 22976 0 310503 0 0 0 GENEVIEVE WOOD VP, MARKETING (UNTIL 4/14) 197669 0 40300 0 703 0 34543 0 9169 0 282384 0 0 0 KIM HOLMES DISTINGUISHED FELLOW 217307 0 40300 0 3491 0 43400 0 23024 0 327522 0 0 0 WESLEY DENTON VP, COMMUNICATIONS (AS OF 4/14) 179585 0 30150 0 340 0 19467 0 22890 0 252432 0 0 0 STUART BUTLER DISTINGUISHED FELLOW (UNTIL 9/14) 161522 0 40000 0 5223 0 0 0 17208 0 223953 0 0 0 RICHARD MILLER DIRECTOR, CENTER FOR TRADE & ECON 172909 0 22300 0 4492 0 17267 0 3064 0 220032 0 0 0 JAMES TALENT DISTINGUISHED FELLOW (UNTIL 11/14) 169923 0 0 0 1558 0 0 0 1098 0 172579 0 0 0 PART I, LINE 1A PART I, LINE 1A: FIRST CLASS OR CHARTER TRAVEL: THE HERITAGE FOUNDATION (THF) ALLOWS FIRST CLASS TRAVEL FOR THE PRESIDENT IN CERTAIN CIRCUMSTANCES, SUCH AS INTERNATIONAL TRAVEL, AND ONLY WHEN CONDUCTING OFFICIAL BUSINESS FOR THF. IN ACCORDANCE WITH THF'S TRAVEL POLICIES, ANY AMOUNT PAID BY THF FOR ANY TRAVEL BY ANY EMPLOYEE THAT IS NOT BUSINESS RELATED IS REQUIRED TO BE REIMBURSED BY THE INDIVIDUAL TO THF OR IS INCLUDED IN THE INDIVIDUAL'S REPORTABLE COMPENSATION ON FORM W-2, BOX 5, AND INCLUDED IN PART VII OF THE FORM 990 AND SCHEDULE J, PART II. TRAVEL FOR COMPANIONS: FROM TIME TO TIME, THF ALLOWS TRAVEL FOR SPOUSES OF CERTAIN OFFICERS OF THE ORGANIZATION. AMOUNTS PAID FOR TRAVEL FOR COMPANIONS THAT ARE NOT BUSINESS RELATED ARE EITHER REIMBURSED BY THE OFFICER TO THF OR ARE INCLUDED IN THE OFFICER'S REPORTABLE COMPENSATION ON FORM W-2, BOX 5, AND INCLUDED IN PART VII OF THE FORM 990 AND SCHEDULE J, PART II. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: AN APARTMENT IN THE STAFF HOUSING FACILITY IS MADE AVAILABLE TO THE PRESIDENT AS A CONVENIENCE TO THF IN CONDUCTING OFFICIAL BUSINESS FOR THF. IN ACCORDANCE WITH THE LICENSE AGREEMENT BETWEEN THE PRESIDENT AND THF, THE PRESIDENT COMPENSATES THF ON A MONTHLY BASIS AT A RATE EQUAL TO THE FAIR MARKET VALUE OF OTHER COMPARABLE LEASEHOLD UNITS IN THE AREA. PART I, LINE 7 A PORTION OF MANAGEMENT COMPENSATION IS IN THE FORM OF AN ANNUAL BONUS. MANAGEMENT BONUSES ARE CONTINGENT ON ACHIEVING THE ORGANIZATION'S MISSION AS WELL AS ON THEIR OWN PERFORMANCE AND ACHIEVEMENT OF ESTABLISHED GOALS. GOALS ARE REVIEWED MID-YEAR AND ANNUALLY, AND QUARTERLY REPORTS OF ORGANIZATION ACTIVITIES ARE PROVIDED TO THE BOARD OF TRUSTEES. X 96 1219054 FMV 0 1 0 PART I, COLUMN (B): THE AMOUNTS REPORTED IN COLUMN (B) REPRESENT THE NUMBER OF INDIVIDUAL CONTRIBUTIONS. FORM 990, PART V, LINE 3B THF IS AWAITING ADDITIONAL INFORMATION IN ORDER TO TIMELY FILE A COMPLETE AND ACCURATE FORM 990-T BY THE EXTENDED DEADLINE OF NOVEMBER 15, 2015. FORM 990, PART VI, SECTION B, LINE 11 THE DIRECTOR OF ACCOUNTING AND CONTROLLER COMPILES NECESSARY INFORMATION TO COMPLETE THE FORM 990. PAID TAX PREPARERS THEN ASSIST IN COMPLETING THE FORM, WHICH IS REVIEWED BY THE DIRECTOR OF ACCOUNTING & CONTROLLER. THE COMPLETED DRAFT IS THEN REVIEWED BY THE PRESIDENT AND EXECUTIVE VICE PRESIDENT. A COMPLETE FINAL DRAFT OF THE FORM 990 IS GIVEN TO THE BOARD OF TRUSTEES FOR FINAL COMMENTS AND APPROVAL BEFORE FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C ALL NEW HERITAGE EMPLOYEES ARE REQUIRED TO SIGN AND ACKNOLWEDGE THAT THEY HAVE RECEIVED AND WILL ADHERE TO ALL POLICIES CONTAINED WITHIN THE FOUNDATION'S EMPLOYEE HANDBOOK, INCLUDING THE FOUNDATION'S CONFLICT OF INTEREST POLICY. SEPARATELY, THE FOUNDATION REQUIRES ALL MEMBERS OF THE BOARD OF TRUSTEES TO DISCLOSE, ANNUALLY, ANY AND ALL FINANCIAL INTEREST OR HOLDINGS THAT MAY BE CONSIDERED A CONFLICT OF INTEREST TO HIS/HER DUTIES AS A TRUSTEE OF THE ORGANIZATION. ADDITIONAL DISCLOSURES ARE REQUIRED PROMPTLY WHEN A PREVIOUSLY UNKNOWN CONFLICT ARISES OR IS DISCOVERED. IN THE CASE OF A POTENTIAL CONFLICT, AFTER A MEMBER OF THE BOARD DISCLOSES SUCH FINANCIAL OR ADVERSE ORGANIZATIONAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE MEMBER, HE/SHE IS REQUIRED TO LEAVE THE GOVERNING BOARD OR COMMITTEE MEETING(S) WHILE THE POTENTIAL CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON BY THE REMAINING MEMBERS TO DETERMINE WHETHER A CONFLICT EXISTS AND WHAT ACTION SHOULD BE TAKEN. IF APPROPRIATE, THE CHAIRPERSON OF THE GOVERNING BOARD OR COMMITTEE MAY APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT GIVING RISE TO THE POTENTIAL CONFLICT. AFTER EXERCISING DUE DILIGENCE, THE GOVERNING BOARD OR COMMITTEE VOTES ON WHETHER THE TRANSACTION IN QUESTION IS IN THE BEST INTEREST OF THE FOUNDATION. IF THE GOVERNING BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE A PERSON HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT IS REQUIRED TO INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN. IF THE BOARD OR COMMITTEE DETERMINES THE PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, DISCIPLINARY AND CORRECTIVE ACTION WILL BE TAKEN. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION, INCLUDING SALARIES, BONUSES, AND BENEFITS, FOR THF'S PRESIDENT, EXECUTIVE VICE PRESIDENT, AND CERTAIN OTHER OFFICERS IS APPROVED BY THE HERITAGE FOUNDATION'S INDEPENDENT BOARD OF TRUSTEES, AND BASED ON THE RECOMMENDATION OF THE BOARD'S COMPENSATION COMMITTEE. IN 2014, THE COMPENSATION COMMITTEE WAS COMPRISED OF FIVE INDEPENDENT, VOLUNTEER BOARD MEMBERS WHO WERE NOT, AND HAVE NEVER BEEN, EMPLOYEES OF THE FOUNDATION. IN DEVELOPING ITS RECOMMENDATIONS, THE COMMITTEE CONSIDERS MARKET DATA AND OTHER SALARY AND BENEFIT SURVEY INFORMATION REGARDING THE COMPENSATION OF SIMILARLY SITUATED EXECUTIVES, WHICH IS PREPARED FOR THE COMMITTEE BY AN OUTSIDE COMPENSATION EXPERT FOR SELECTED POSITIONS. BECAUSE THE MANAGEMENT AND LEADERSHIP SKILLS OF HERITAGE EXECUTIVES HAVE A SIGNIFICANT EFFECT ON THE FOUNDATION'S SUCCESS, A SIGNIFICANT PORTION OF CASH COMPENSATION IS IN THE FORM OF A BONUS. BONUSES ARE CONTINGENT ON ACHIEVING THE ORGANIZATION'S MISSION AS WELL AS THEIR OWN PERFORMANCE AND ACHIEVEMENT OF ESTABLISHED GOALS. GOALS ARE REVIEWED MID-YEAR AND ANNUALLY, AND QUARTERLY REPORTS OF FOUNDATION ACTIVITIES ARE PROVIDED TO THE BOARD. IN CONSIDERING AND APPROVING TOTAL COMPENSATION FOR 2014, THE COMPENSATION COMMITTEE AND THE FULL BOARD OF TRUSTEES ALSO APPROVED BENEFITS PROVIDED UNDER AN EMPLOYER-FUNDED QUALIFIED RETIREMENT PLAN, GROUP HEALTH, LIFE, AND LONG-TERM DISABILITY AND LONG-TERM CARE INSURANCE PLANS, AND OTHER BENEFITS. FORM 990, PART VI, SECTION C, LINE 19 THE HERITAGE FOUNDATION MAKES ITS FORM 990 AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST IN COMPLIANCE WITH THE LAW. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF INTEREST RATE SWAPS -1,152,626. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -795,014. CHANGE IN VALUE OF EXECUTIVE LIFE INSURANCE POLICY 75,211. 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