2014-06-27T18:38:30-05:00 2013-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2013-01-01 237327730 THE HERITAGE FOUNDATION HERI 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 JAMES W DEMINT PRESIDENT 2025464400 2014-06-27 1 WILLIAM E TURCO CPA P00369217 3012963600 2013 2015-11-30 17:44:51Z JAMES W DEMINT 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 222783462 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 21 582 32 0 0 78190250 102174419 122538 601313 5462590 8599911 2309252 1314504 86084630 112690147 84960 135810 0 0 35292049 36923872 3602323 3225073 16588744 42768989 39876980 81748321 80161735 4336309 32528412 200636522 238662795 46359230 44412132 154277292 194250663 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 26777982 96818 601313 (SEE SCHEDULE O)EDUCATIONAL PROGRAMS:IN ADDITION TO PUBLIC POLICY RESEARCH AND DISSEMINATION, 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 2013, THF'S LECTURES AND SEMINARS PROGRAM PRODUCED OVER 200 PUBLIC EVENTS ATTRACTING NEARLY 12,000 ATTENDEES. THF'S RESOURCE BANK CONFERENCE DRAWS 500 CONSERVATIVE POLICY EXPERTS, ACTIVISTS, CONGRESS MEMBERS, AND ENTREPRENEURS FOR THREE DAYS OF WORKSHOPS AND DISCUSSIONS. THF'S INTERN PROGRAM PROVIDED ALMOST 200 YOUNG PEOPLE AN INVALUABLE WORK-STUDY EXPERIENCE IN WASHINGTON, DC. THF TRAINED AND GRADUATED 78 YOUNG CAPITOL HILL STAFFERS FROM ITS CONGRESSIONAL FELLOWS PROGRAM AND HOSTED NEARLY 40 EVENTS FOR ITS MEMBERS, ATTRACTING MORE THAN 5,900 TOTAL PARTICIPANTS.ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2013 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 25990247 (SEE SCHEDULE O)PUBLIC POLICY RESEARCH:THE HERITAGE FOUNDATION PRODUCES HUNDREDS OF RESEARCH PAPERS YEARLY, 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 2013 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 8143121 38992 (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 3,800 RADIO AND TELEVISION APPEARANCES IN 2013, AND EARNED ABOUT 1,400 OP-ED PLACEMENTS IN MAJOR PRINT AND ONLINE MEDIA OUTLETS. THF SENT OUT A DAILY NEWSLETTER, "THE MORNING BELL," TO NEARLY 200,000 SUBSCRIBERS, AND PUBLISHED THOUSANDS OF BLOG POSTS ON THE FOUNDRY. 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 2013 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ABOUT/FINANCIALS 60911350 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 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 0 1 X 204 0 1 582 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 ID IL IN KS KY MA MD ME MI MO MN MS NC ND NE NH NJ NM NY NV OH OK OR PA RI SC TN TX UT VA WI WV X X WILLIAM BRET BERNHARDT 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 X THOMAS A SAUNDERS III CHAIRMAN 2.00 X X 0 0 0 RICHARD M SCAIFE VICE CHAIRMAN 2.00 X X 0 0 0 J FREDERIC RENCH SECRETARY 2.00 X X 0 0 0 JAMES W DEMINT PRES.-ELECT (1/13) & PRES. (4/13) 40.00 X X 613529 0 24631 PHILLIP N TRULUCK EXECUTIVE VICE PRESIDENT 40.00 X X 794868 0 81100 EDWIN J FEULNER JR PRESIDENT (UNTIL 4/13) (SEE SCH J&O) 40.00 X X 3552883 0 14804 MEG ALLEN TRUSTEE 2.00 X 0 0 0 DOUGLAS F ALLISON TRUSTEE 2.00 X 0 0 0 LARRY P ARNN PHD TRUSTEE 2.00 X 0 0 0 THE HON 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 COLE 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 BARBARA VAN ANDEL-GABY TRUSTEE 2.00 X 0 0 0 MARION WELLS TRUSTEE 2.00 X 0 0 0 DAVID ADDINGTON GROUP VP, RESEARCH 40.00 X 280945 0 40795 GEOFFREY J LYSAUGHT GROUP VP, STRATEGIC COMMUNICATIONS 40.00 1.00 X 266796 0 56696 JOHN FOGARTY GROUP VP, DEVELOPMENT 40.00 X 219660 0 57754 BECKY NORTON DUNLOP VP, EXTERNAL RELATIONS 40.00 X 225127 0 56358 DERRICK MORGAN VP, DOMESTIC & ECON POL (AS OF 4/13) 40.00 X 212809 0 50316 GENEVIEVE WOOD VP, MARKETING 40.00 X 228267 0 45378 JAMES CARAFANO VP, FOREIGN & DEFENSE POLICY 40.00 X 237670 0 33883 JOHN VON KANNON VP & SENIOR COUNSELOR 40.00 X 264227 0 71428 MICHAEL GONZALEZ VP, COMMUNICATIONS 40.00 X 237960 0 60295 MICHAEL FRANC VP, GOV'T. RELATIONS (UNTIL 6/13) 40.00 2.00 X 129454 0 15023 MATTHEW SPALDING VP, AMERICAN STUDIES (UNTIL 9/13) 40.00 X 173257 0 20453 MICHAEL SPILLER VP, INFORMATION TECH. (UNTIL 5/13) 40.00 X 90596 0 12540 EDWIN MEESE III RONALD REAGAN DISTINGUISHED FELLOW 40.00 X 108070 0 5734 KATHLEEN ROWAN EXECUTIVE ASSISTANT 40.00 X 48149 0 3439 STUART BUTLER DISTINGUISHED FELLOW 40.00 X 273743 0 75452 ELAINE CHAO DISTINGUISHED FELLOW 40.00 X 267029 0 25463 KIM HOLMES DISTINGUISHED FELLOW 40.00 X 257657 0 69347 JAMES TALENT DISTINGUISHED FELLOW 40.00 X 191406 0 17428 RICHARD MILLER DIR, CENTER FOR TRADE & ECON 40.00 X 188082 0 19199 8862184 0 857516 91 0 1 0 MERKLE RESPONSE SERVICES INC 100 JAMISON COURT HAGERSTOWN MD 21740 MAILING CONTACT MGMT 1681914 GIVE RIGHT INC 375 N STEPHANIE 14 HENDERSON NV 89014 MARKETING & FUNDRAISING 1631290 CONRAD DIRECT INC 300 KNICKERBOCKER RD CRESSKILL NJ 07626 MAILING CONTACT MGMT 1468596 PREMIERE RADIO NETWORKS 15260 VENTURA BLVD SHERMAN OAKS CA 91403 MARKETING & PROMOTION 1097768 CORPORATE PRESS INC 9700 PHILADELPHIA CT LANHAM MD 20706 PRINTING 1010688 55 102174419 2270475 102174419 INTERN HOUSING REVENUE 531110 474865 474865 PUBLICATION SALES 511190 126448 126448 601313 402866 402866 70148 70148 993851 955246 38605 38605 38605 117335114 109134430 3639 8200684 -3639 8197045 8197045 OTHER INCOME 900099 1205751 1205751 1205751 112690147 601313 0 9914415 135810 135810 8192492 6745705 286657 1160130 22077045 18197201 772527 3107317 1537696 1176702 40281 320713 3190386 2791538 147185 251663 1926253 1474161 50452 401640 281990 263679 6612 11699 90558 4528 81502 4528 3225073 3225073 405295 405295 6641097 6172456 156542 312099 1443221 1190907 359 251955 17334253 12172190 163903 4998160 1263539 995102 52914 215523 2369280 1793500 79203 496577 721084 140234 13807 567043 4907816 4472366 134480 300970 222967 97249 99212 26506 3099361 2327752 137175 634434 240810 188301 20642 31867 DUES & SUBSCRIPTIONS 394667 361313 8186 25168 BOOKS & PRODUCTS 301719 68098 2019 231602 HONORARIA/WRITER'S FEES 115063 115063 OTHER EXPENSES 44260 27495 2688 14077 80161735 60911350 2661641 16588744 X 14987207 12454036 0 2533171 4900 310 15320439 7037765 11611058 9579251 26235 49716 850404 663745 92332525 30128498 61965235 62204027 42731395 7389913 67457596 150967673 669260 770395 200636522 238662795 10292457 9621002 17822976 18457133 18243797 16333997 46359230 44412132 X 138771857 150802206 12105435 40048457 3400000 3400000 154277292 194250663 200636522 238662795 X 32528412 7844283 -399324 X 0 1 X 1 0 X 71755400 73957186 65687562 78190250 102174419 391764817 71755400 73957186 65687562 78190250 102174419 391764817 17695779 374069038 2911829 2413048 2375072 3757095 1466865 12923909 234621 362539 705479 763919 1205751 3272309 407961035 1693815 0.91690 0.95330 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 80161735 80161735 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 250000 250000 250000 250000 1000000 1500000 100139675 31480469 13703313 5047829 411611 139864017 93474227 2291747 11893390 7073016 446673 100139675 103029082 5399117 -8220145 6348137 385690 93474227 93848790 3841751 13525612 7859847 327224 103029082 77648479 2875257 17464443 3805737 333652 93848790 0.78540 0.02430 0.19030 0 0 12065438 12065438 68084540 21246505 46838035 8689849 6451631 2238218 3492698 2430362 1062336 62204027 INVESTMENTS IN MUTUAL FUNDS & LP'S 135764831 F TRUSTS & ANNUITIES 15202842 F 150967673 DEFERRED COMPENSATION PLANS 2338716 SPLIT-INTEREST AGREEMENTS 13880425 INTEREST RATE SWAP 114856 16333997 X 120685057 7844283 -399324 7444959 113240098 405295 -955246 -549951 112690147 80711686 955246 955246 79756440 405295 405295 80161735 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 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" OR "THE ORGANIZATION") CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013: 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. THE HERITAGE FOUNDATION HAS BEEN CLASSIFIED BY THE INTERNAL REVENUE SERVICE AS A PUBLIC CHARITY AND IS NOT A PRIVATE FOUNDATION. 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 DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED THE FOUNDATION'S TAX POSITIONS AND CONCLUDED THAT THE FOUNDATION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS 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 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED GAIN ON INTEREST RATE SWAP 767,507. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENT -1,318,424. CHANGE IN VALUE OF EXECUTIVE LIFE INSURANCE POLICY 151,593. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES FROM RENTAL ACTIVITIES -955,246. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES FROM RENTAL ACTIVITIES 955,246. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 3757 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 287497 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 143290 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 7044 RUSSIA AND NEIGHBORING STATES 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 4861 SOUTH AMERICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 9312 SOUTH ASIA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 13075 NORTH AMERICA 0 0 PROGRAM SERVICES RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 585 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 6842225 0 0 0 0 0 0 469421 6842225 7311646 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 15484265 899647 14584618 GIVE RIGHT INC 375 N STEPHANIE 14 HENDERSON NV 89014 TELEMARKETING PROGRAMS & THANK YOU FOLLOW UPS 0 5945520 1558485 4387035 PURSUANT KMA 5151 BELT LINE ROAD SUITE 900 DALLAS TX 75254 CONSULTANTS ON MULTI CHANNEL MEDIA PROGRAM 0 3472371 353037 3119334 WARFIELD & WALSH INC 601 S WASHINGTON STREET ALEXANDRIA VA 223143004 CONSULTANTS ON DIRECT MAIL PROGRAM 0 2861298 327581 2533717 BMD 1420 KING STREET SUITE 600 ALEXANDRIA VA 22314 CONSULTANTS ON DIRECT MAIL PROGRAM 0 250585 50737 199848 BRILLIANT COMMUNICATIONS 9305 SCHUBERT COURT VIENNA VA 22182 CONSULTANTS ON DIRECT MAIL PROGRAM 0 127843 32875 94968 28141882 3222362 24919520 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: GIVE RIGHT, INC POSTAGE: $34,106 PRINTING: $46,069 NAME OF FUNDRAISER: ODELL, SIMMS, & ASSOCIATES PRINTING: $19,675 NAME OF FUNDRAISER: PURSUANT KMA ADVERTISING: $121,073 NAME OF FUNDRAISER: WARFIELD & WALSH, INC. POSTAGE: $133,656 1 CAPITOL HILL BUSINESS IMPROVEMENT DISTRICT (CHBID) 30 MASSACHUSETTS AVE NE WASHINGTON DC 20002 522232461 501(C)(6) 37492 CLEANING, SAFETY, AND BEAUTIFICATION PROGRAMS IN THE CAPITOL HILL COMMUNITY THE CITADEL FOUNDATION 171 MOULTRIE ST CHARLESTON SC 29409 576020493 501(C)(3) 20000 PREPARATION AND EDITING OF A COMPILATION OF LECTURES 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 COMMON SENSE ISSUES INC 8190-A BEECHMONT AVE 103 CINCINNATI OH 452556117 208824036 501(C)(4) 20000 SUPPORT CHARITABLE ACTIVITIES THAT ADVANCE CONSERVATIVE PUBLIC POLICIES THE CLAREMONT INSTITUTE 937 W FOOTHILL BLVD STE E CLAREMONT CA 91711 953443202 501(C)(3) 25000 SALVATORI PRIZE FOR AMERICAN CITIZENSHIP 3 2 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 2013 COMPRISED APPROXIMATELY ONE TENTH OF ONE PERCENT OF ITS 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 1 0 0 0 0 0 1 0 JAMES W DEMINT PRES.-ELECT (1/13) & PRES. (4/13) 380513 0 200200 0 32816 0 0 0 24631 0 638160 0 0 0 PHILLIP N TRULUCK EXECUTIVE VICE PRESIDENT 396914 0 380300 0 17654 0 51000 0 30100 0 875968 0 0 0 EDWIN J FEULNER JR PRESIDENT (UNTIL 4/13) (SEE SCH J&O) 180820 0 700000 0 2672063 0 0 0 14804 0 3567687 0 865000 0 DAVID ADDINGTON GROUP VP, RESEARCH 233676 0 45150 0 2119 0 37950 0 2845 0 321740 0 0 0 GEOFFREY J LYSAUGHT GROUP VP, STRATEGIC COMMUNICATIONS 226267 0 40100 0 429 0 36950 0 19746 0 323492 0 0 0 JOHN FOGARTY GROUP VP, DEVELOPMENT 182959 0 36300 0 401 0 32535 0 25219 0 277414 0 0 0 BECKY NORTON DUNLOP VP, EXTERNAL RELATIONS 185789 0 36300 0 3038 0 33471 0 22887 0 281485 0 0 0 DERRICK MORGAN VP, DOMESTIC & ECON POL (AS OF 4/13) 182315 0 30150 0 344 0 28602 0 21714 0 263125 0 0 0 GENEVIEVE WOOD VP, MARKETING 189280 0 38300 0 687 0 33823 0 11555 0 273645 0 0 0 JAMES CARAFANO VP, FOREIGN & DEFENSE POLICY 205497 0 30300 0 1873 0 31487 0 2396 0 271553 0 0 0 JOHN VON KANNON VP & SENIOR COUNSELOR 210010 0 50300 0 3917 0 44950 0 26478 0 335655 0 0 0 MICHAEL GONZALEZ VP, COMMUNICATIONS 198741 0 38150 0 1069 0 33942 0 26353 0 298255 0 0 0 MATTHEW SPALDING VP, AMERICAN STUDIES (UNTIL 9/13) 137788 0 35000 0 469 0 0 0 20453 0 193710 0 0 0 STUART BUTLER DISTINGUISHED FELLOW 225818 0 40300 0 7625 0 46950 0 28502 0 349195 0 0 0 ELAINE CHAO DISTINGUISHED FELLOW 262986 0 300 0 3743 0 23387 0 2076 0 292492 0 0 0 KIM HOLMES DISTINGUISHED FELLOW 213818 0 40300 0 3539 0 42950 0 26397 0 327004 0 0 0 JAMES TALENT DISTINGUISHED FELLOW 189808 0 300 0 1298 0 16328 0 1100 0 208834 0 0 0 RICHARD MILLER DIR, CENTER FOR TRADE & ECON 165423 0 20300 0 2359 0 16126 0 3073 0 207281 0 0 0 PART I, LINE 1A FIRST CLASS OR CHARTER TRAVEL: THE HERITAGE FOUNDATION (THF) ALLOWS FIRST CLASS OR CHARTER 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 INCIDENTAL TRAVEL EXPENSES 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: AS PART OF THE PRESIDENTIAL TRANSITION IN 2013, AN APARTMENT IN THE INTERN HOUSING FACILITY WAS MADE AVAILABLE TO THE INCOMING PRESIDENT ON A TEMPORARY BASIS. AMOUNTS REPRESENTING THE FAIR MARKET VALUE OF THE LEASED APARTMENT WERE INCLUDED IN THE PRESIDENT'S REPORTABLE COMPENSATION ON FORM W-2, BOX 5, AND INCLUDED IN PART VII OF THE FORM 990 AND SCHEDULE J, PART II. PART I, LINE 4B COMPENSATION TO EDWIN J. FEULNER, JR. EFFECTIVE AS OF JANUARY 1, 1980, THE HERITAGE FOUNDATION ("THF") ESTABLISHED A DEFERRED COMPENSATION PLAN (THE "PLAN") FOR THE THEN-PRESIDENT OF THF, EDWIN J. FEULNER, JR. OVER A 27-YEAR PERIOD FROM 1980 TO 2006, AN AGGREGATE AMOUNT OF $865,000 WAS DEFERRED UNDER THE PLAN, WHICH, TO THE KNOWLEDGE OF THF BASED ON AVAILABLE DOCUMENTS, WAS INCLUDED AS REQUIRED IN FORM 990S IN PRIOR YEARS. IN 2013, UPON HIS RETIREMENT, $2,521,230 WAS PAID TO DR. FEULNER AS REQUIRED UNDER THE PLAN, WHICH INCLUDED THE $865,000 OF DEFERRED COMPENSATION PLUS INVESTMENT EARNINGS OF $1,656,230 ACCRUED THEREON OVER A PERIOD OF 33 YEARS. THAT PAYMENT IS INCLUDED IN DR. FEULNER'S TAXABLE COMPENSATION REPORTED ON FORM 990, PART VII, COLUMN (D), AND SCHEDULE J, PART II, COLUMN (B)(III). 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 DIRECTORS. MY ASSISTANT LLC FIRM OWNED BY FAMILY MEMBER OF TRUSTEE 231404 CONTRACT FOR ADMINISTRATIVE SERVICES BETWEEN THE FOUNDATION AND MY ASSISTANT, LLC 0 X 79 2270475 FMV 0 1 0 PART I, COLUMN (B): THE AMOUNTS REPORTED IN COLUMN (B) REPRESENT THE NUMBER OF ITEMS CONTRIBUTED AND NOT NECESSARILY 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, 2014. 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 THE 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 ACKNOWLEDGE 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 OTHER MEMBERS OF SENIOR MANAGEMENT IS AUTHORIZED BY THE HERITAGE FOUNDATION'S INDEPENDENT BOARD OF TRUSTEES, AND BASED ON THE RECOMMENDATION OF THE BOARD'S COMPENSATION COMMITTEE. IN 2013, 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. 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 THE SUCCESS OF THE ORGANIZATION, THE DEPARTMENTS THE EXECUTIVE LEADS, AND 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 2013, 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 VII: EXPLANATION: COLUMN (B), AVERAGE HOURS PER WEEK: HOURS REPORTED IN COLUMN (B) FOR EMPLOYEES OF THE ORGANIZATION REPRESENT THE ESTIMATED AVERAGE HOURS PER WEEK DEVOTED TO THE ORGANIZATION DURING THEIR PERIOD OF EMPLOYMENT. COMPENSATION TO EDWIN J. FEULNER, JR. EFFECTIVE AS OF JANUARY 1, 1980, THE HERITAGE FOUNDATION ("THF") ESTABLISHED A DEFERRED COMPENSATION PLAN (THE "PLAN") FOR THE THEN-PRESIDENT OF THF, EDWIN J. FEULNER, JR. OVER A 27-YEAR PERIOD FROM 1980 TO 2006, AN AGGREGATE AMOUNT OF $865,000 WAS DEFERRED UNDER THE PLAN, WHICH, TO THE KNOWLEDGE OF THF BASED ON AVAILABLE DOCUMENTS, WAS INCLUDED AS REQUIRED IN FORM 990S IN PRIOR YEARS. IN 2013, UPON HIS RETIREMENT, $2,521,230 WAS PAID TO DR. FEULNER AS REQUIRED UNDER THE PLAN, WHICH INCLUDED THE $865,000 OF DEFERRED COMPENSATION PLUS INVESTMENT EARNINGS OF $1,656,230 ACCRUED THEREON OVER A PERIOD OF 33 YEARS. THAT PAYMENT IS INCLUDED IN DR. FEULNER'S TAXABLE COMPENSATION REPORTED ON FORM 990, PART VII, COLUMN (D), AND SCHEDULE J, PART II, COLUMN (B)(III). FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -1,318,424. CHANGE IN VALUE OF INTEREST RATE SWAP 767,507. CHANGE IN VALUE OF EXECUTIVE LIFE INSURANCE POLICY 151,593. 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