2013-09-27T10:16:50-05:00 2012-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2012-01-01 237327730 THE HERITAGE FOUNDATION HERI 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 JAMES W DEMINT 2025464400 2013-09-27 1 WILLIAM E TURCO CPA P00369217 3012963600 2012 2016-02-25 16:41:14Z JAMES W DEMINT 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 141242684 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. 23 21 516 35 6648 0 65687562 78190250 206109 122538 4222024 5462590 2055288 2309252 72170983 86084630 525384 84960 0 0 32858870 35292049 3952210 3602323 15719822 42697364 42768989 80033828 81748321 -7862845 4336309 174109394 200636522 30877847 46359230 143231547 154277292 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 28140842 33015 (SEE SCHEDULE O)PUBLIC POLICY RESEARCH: THE HERITAGE FOUNDATION ("THF" OR "THE 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 2012 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ANNUALREPORT 23331036 6934 122538 (SEE SCHEDULE O)EDUCATIONAL PROGRAMS: IN ADDITION TO PUBLIC POLICY RESEARCH AND DISSEMINATION, THE HERITAGE 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 2012, OUR LECTURES AND SEMINARS PROGRAM PRODUCED 194 PUBLIC EVENTS ATTRACTING NEARLY 11,400 ATTENDEES. OUR RESOURCE BANK CONFERENCE DRAWS MORE THAN 600 CONSERVATIVE POLICY EXPERTS, ACTIVISTS, CONGRESS MEMBERS, AND ENTREPRENEURS FOR THREE DAYS OF WORKSHOPS AND DISCUSSIONS. OUR INTERN PROGRAM PROVIDED ALMOST 200 YOUNG PEOPLE AN INVALUABLE WORK-STUDY EXPERIENCE IN WASHINGTON, DC. WE TRAINED AND GRADUATED 61 YOUNG CAPITOL HILL STAFFERS FROM OUR CONGRESSIONAL FELLOWS PROGRAM AND HOSTED NEARLY 100 EVENTS FOR OUR MEMBERS, ATTRACTING MORE THAN 5,100 TOTAL PARTICIPANTS. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2012 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ANNUALREPORT 11043822 45011 (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. OUR ANALYSTS MADE OVER 4,900 RADIO AND TELEVISION APPEARANCES IN 2012, AND EARNED ABOUT 1,000 OP-ED PLACEMENTS IN MAJOR PRINT AND ONLINE MEDIA OUTLETS. WE SENT OUT A DAILY NEWSLETTER, "THE MORNING BELL," TO NEARLY 200,000 SUBSCRIBERS, AND PUBLISHED THOUSANDS OF BLOG POSTS ON THE FOUNDRY. WE ALSO CONDUCT IN-DEPTH ISSUES-RELATED SEMINARS FOR MEMBERS OF THE MEDIA, ADDRESSING TOPICS SUCH AS HEALTHCARE AND HOMELAND SECURITY. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2012 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://WWW.HERITAGE.ORG/ANNUALREPORT 62515700 1 0 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 1 0 1 0 0 0 1 1 0 1 0 1 268 0 1 516 1 1 1 0 0 0 0 0 0 0 0 0 X 23 21 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AK AL AR AZ CO CT DC DE FL HI IA ID IL IN KS KY LA MA MD ME MI MS MO MT NC ND NE NJ NH NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY X GEOFF LYSAUGHT 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 THOMAS A SAUNDERS III 2.00 X X 0 0 0 RICHARD M SCAIFE 2.00 X X 0 0 0 J FREDERIC RENCH 2.00 X X 0 0 0 EDWIN FEULNER 40.00 X X 1162696 0 73343 PHILLIP TRULUCK 40.00 X X 738756 0 73343 MEG ALLEN 2.00 X 0 0 0 DOUGLAS F ALLISON 2.00 X 0 0 0 LARRY P ARNN PHD 2.00 X 0 0 0 HON BELDEN H BELL 2.00 X 0 0 0 MIDGE DECTER 2.00 X 0 0 0 STEVE FORBES 2.00 X 0 0 0 TODD W HERRICK 2.00 X 0 0 0 JERRY HUME 2.00 X 0 0 0 KAY COLES JAMES 2.00 X 0 0 0 HON J WILLIAM MIDDENDORF II 2.00 X 0 0 0 ABBY MOFFAT 2.00 X 0 0 0 NERSI NAZARI PHD 2.00 X 0 0 0 ROBERT PENNINGTON 2.00 X 0 0 0 ANTHONY J SALIBA 2.00 X 0 0 0 WILLIAM E SIMON JR 2.00 X 0 0 0 BRIAN TRACY 2.00 X 0 0 0 BARB VAN ANDEL-GABY 2.00 X 0 0 0 MARION WELLS 2.00 X 0 0 0 ROBERT J HERBOLD 2.00 X 0 0 0 EDWIN MEESE III 40.00 X 353628 0 70843 DAVID ADDINGTON 40.00 X 262592 0 37500 JOHN VON KANNON 40.00 X 261978 0 67843 MICHAEL FRANC 40.00 X 232212 0 59774 GENEVIEVE WOOD 40.00 X 227598 0 40944 MICHAEL GONZALEZ 40.00 X 222087 0 55857 BECKY DUNLOP 40.00 X 218522 0 52795 JOHN FOGARTY 40.00 X 204829 0 48737 MICHAEL SPILLER 40.00 X 204249 0 38747 MATTHEW SPALDING 40.00 X 203707 0 54203 JAMES CARAFANO 40.00 X 198748 0 17985 GEOFFREY LYSAUGHT 40.00 X 133084 0 11112 KATHLEEN ROWAN 40.00 X 112062 0 18226 TED SCHELENSKI 40.00 X 97193 0 3320 ERNEST ISTOOK 40.00 X 278280 0 22988 STUART BUTLER 40.00 X 269821 0 65007 ELAINE CHAO 40.00 X 265763 0 22988 KIM HOLMES 40.00 X 262377 0 61007 JAMES FOSTER 40.00 X 218566 0 33594 6128748 0 930156 85 0 1 0 GIVE RIGHT INC 6715 SUNSET BLVD LOS ANGELOS CA 90028 MARKETING & ADVERTISING 1848262 PREMIERE RADIO NETWORKS 15260 VENTURA BLVD SHERMAN OAKS CA 91403 MARKETING & ADVERTISING 1402291 CONRAD DIRECT INC 300 KNICKERBOCKER RD CRESSKILL NJ 07626 MAILING CONTACT MANAGEMENT 1014708 CORPORATE PRESS INC 403 BRIGHTSEAT RD LANDOVER MD 20785 PRINTING 857408 STRIVE COMMUNICATIONS 2602 WINDWOOD DR WINCHESTER VA 22601 PRINTING 800076 36 78190250 2092909 78190250 PUBLICATION SALES 900099 122538 122538 122538 2218410 6648 2211762 35423 35423 1509910 0 1509910 1509910 1509910 56990160 1412074 53572970 1585084 3417190 -173010 3244180 3244180 OTHER INCOME 900099 763919 763919 763919 86084630 122538 6648 7765194 59960 59960 25000 25000 5808357 4849872 135140 823345 23239843 19387022 514867 3337954 1503685 1262802 45503 195380 2991457 2512241 90525 388691 1748707 1468573 52918 227216 337880 261141 55367 21372 91506 70723 14995 5788 3602323 3602323 1210271 1210271 5311611 3291122 78505 1941984 2906995 2329310 81 577604 17155096 14289647 206958 2658491 2004197 1592329 25261 386607 2585975 2191042 387275 7658 2021539 1508316 7009 506214 4019347 3838343 15915 165089 309615 146249 125594 37772 3713012 2547511 507557 657944 226793 190763 18298 17732 STAFF TRAINING 465598 364717 16233 84648 HONORARIA/WRITER'S FEES 220233 165233 55000 TEMPORARY STAFFING 189321 163784 4527 21010 81748321 62515700 3512799 15719822 X 12258081 9952444 0 2305637 1000 4900 10897487 15320439 8348100 11611058 110912 26235 1414584 850404 89235061 27269826 49402214 61965235 37383474 42731395 65817323 67457596 734300 669260 174109394 200636522 9615477 10292457 4983333 17822976 16279037 18243797 30877847 46359230 X 133271628 138771857 8559919 12105435 1400000 3400000 143231547 154277292 174109394 200636522 X 4336309 8469856 -1760420 X 0 1 X 1 0 X 62910593 71755400 72557778 65687562 78190250 351101583 62910593 71755400 72557778 65687562 78190250 351101583 647547 350454036 4096511 2911829 2406313 2375072 2553472 14343197 104561 234621 369275 705479 763919 2177855 367622635 1142752 0.95330 0.91650 X 81748321 81748321 1000000 250000 0 0 1000000 1000000 1000000 3000000 4500000 250000 250000 250000 750000 1125000 101684745 7885189 13681369 10843531 446673 111961099 122278641 2357900 -8275637 14290469 385690 101684745 114267069 11346041 15188077 18195322 327224 122278641 94681554 13182545 19910200 13173578 333652 114267069 134559493 13468346 -37525326 15600264 220695 94681554 0.86150 0.03040 0.10810 0 0 12065439 12065439 66333246 19085822 47247424 10836376 8184004 2652372 61965235 INVESTMENTS IN LIMITED PARTNERSHIPS 49499827 F TRUSTS AND ANNUITIES 17957769 F 67457596 DEFERRED COMPENSATION PLANS 4387041 SPLIT-INTEREST AGREEMENTS 12988305 INTEREST RATE SWAP 868451 18243797 X 91583795 8469856 -1760420 6709436 84874359 1210271 1210271 86084630 80538050 0 80538050 1210271 1210271 81748321 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: 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. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: 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 DE-RECOGNITION, 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 2009. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED LOSS - INTEREST RATE SWAP -809,162. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENT -951,258. EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 180906 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 132544 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 5898 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 4263 SOUTH AMERICA 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 188 SOUTH ASIA 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 31401 CENTRAL AMERICA AND THE CARIBBEAN INVESTMENTS 13398470 0 0 0 0 0 0 13753670 0 13753670 1 0 0 0 0 0 X X X 1 ODELL SIMMS & ASSOCIATES 1593 SPRING HILL ROAD SUITE 450 TYSONS CORNER VA 22182 CONSULTS ON DIRECT MAIL PROGRAM 0 17852498 744410 17108088 GIVE RIGHT INC 375 N STEPHANIE 14 HENDERSON NV 89014 TELEMARKETING PROGRAMS & THANK YOU FOLLOW UPS 0 6051098 1839215 4211883 PURSUANT KMA 5151 BELT LINE ROAD SUITE 900 DALLAS TX 75254 CONSULTS ON MULTI CHANNEL/MEDIA PROGRAM 0 5344962 737165 4607797 WARFIELD & WALSH INC 601 S WASHINGTON STREET ALEXANDRIA VA 223143004 CONSULTS ON DIRECT MAIL PROGRAM 0 1720007 227010 1492997 BMD 1420 KING STREET SUITE 600 ALEXANDRIA VA 22314 CONSULTS ON DIRECT MAIL PROGRAM 0 131662 16650 115012 WEST CORPORATION 11808 MIRACLE HILL DRIVE OMAHA NE 681544403 TELEMARKETING PROGRAMS 0 99916 37873 62043 31200143 3602323 27597820 AL AK AZ AR CO CT DC FL HI IL KS KY LA ME MA MD MS MO MI NH NJ NY NM NC ND OH OK OR PA RI SC TN UT VA WA WV WI MN GA CA 1 CAPITOL HILL - BUSINESS IMPROVEMENT DISTRICT (CHBID) 30 MASSACHUSETTS AVE NE WASHINGTON DC 20002 522232461 501(C)(6) 41581 CLEANING, SAFETY, AND BEAUTIFICATION PROGRAMS IN THE CAPITOL HILL COMMUNITY 1 SALVATORI PRIZE FOR AMERICAN CITIZENSHIP 1 25000 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE HERITAGE FOUNDATION (THF) MAKES PERIODIC CONTRIBUTIONS, BUT IS NOT A GRANT-MAKING ORGANIZATION. OUR CONTRIBUTIONS TO OTHER QUALIFYING ORGANIZATIONS IN 2012 COMPRISED APPROXIMATELY ONE TENTH OF ONE PERCENT OF OUR 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 1 1 X X X X X 0 0 0 0 0 0 0 0 0 EDWIN FEULNER 531561 0 613250 0 17885 0 50000 0 26020 0 1238716 0 0 0 PHILLIP TRULUCK 369086 0 352080 0 17590 0 50000 0 25813 0 814569 0 0 0 EDWIN MEESE III 290729 0 55300 0 7599 0 47500 0 26680 0 427808 0 0 0 DAVID ADDINGTON 220484 0 40150 0 1958 0 37500 0 2845 0 302937 0 0 0 JOHN VON KANNON 202806 0 55300 0 3872 0 44500 0 25761 0 332239 0 0 0 MICHAEL FRANC 182737 0 47300 0 2175 0 36432 0 25646 0 294290 0 0 0 GENEVIEVE WOOD 184852 0 42300 0 446 0 33622 0 9452 0 270672 0 0 0 MICHAEL GONZALEZ 179998 0 41150 0 939 0 32514 0 25636 0 280237 0 0 0 BECKY DUNLOP 179237 0 36300 0 2985 0 32885 0 22247 0 273654 0 0 0 JOHN FOGARTY 169168 0 35300 0 361 0 31167 0 20617 0 256613 0 0 0 MICHAEL SPILLER 168312 0 35300 0 637 0 18863 0 21492 0 244604 0 0 0 MATTHEW SPALDING 178767 0 24300 0 640 0 30860 0 25473 0 260040 0 0 0 JAMES CARAFANO 172843 0 24300 0 1605 0 17985 0 2197 0 218930 0 0 0 ERNEST ISTOOK 273988 0 300 0 3992 0 22988 0 2113 0 303381 0 0 0 STUART BUTLER 221806 0 40300 0 7715 0 46500 0 26785 0 343106 0 0 0 ELAINE CHAO 262988 0 300 0 2475 0 22988 0 2075 0 290826 0 0 0 KIM HOLMES 208536 0 50300 0 3541 0 42500 0 25679 0 330556 0 0 0 JAMES FOSTER 213462 0 3300 0 1804 0 19819 0 17645 0 256030 0 0 0 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 BUSINESS 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. MY ASSISTANT LLC FIRM OWNED BY FAMILY MEMBER OF TRUSTEE 194195 CONTRACT FOR ADMINISTRATIVE SERVICES BETWEEN THE FOUNDATION AND MY ASSISTANT, LLC 0 X 93 1869738 FMV X SOFTWARE 5105 222135 FMV X EVENT TICKETS 1 1036 FMV 0 1 0 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: 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 VI, SECTION B, LINE 11 FORM 990, PART VI, SECTION B, LINE 11B: THE DIRECTOR OF ACCOUNTING AND CONTROLLER COMPILES NECESSARY INFORMATION TO COMPLETE THE FORM 990, WHICH IS PREPARED BY INDEPENDENT TAX PREPARERS. DRAFTS OF THE FORM 990 ARE REVIEWED BY THE FOUNDATION'S DIRECTOR OF ACCOUNTING AND CONTROLLER AND ASSOCIATE CONTROLLER. THE COMPLETED DRAFT IS THEN REVIEWED BY THE V.P. OF FINANCE & STRATEGY. ONCE ALL CORRECTIONS HAVE BEEN MADE, THE FORM 990 IS REVIEWED BY THE PRESIDENT/CEO AND EXECUTIVE V.P. A COMPLETE FINAL DRAFT OF THE FORM 990 IS GIVEN TO THE BOARD OF TRUSTEES FOR FINAL COMMENTS AND APPROVAL BEFORE FILING. 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 OUR 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 2012, 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 2012, 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -951,258. UNREALIZED LOSS - INTEREST RATE SWAP -809,162. INTERN HOUSING LLC 208 MASSACHUSETTS AVE NE STE 100 WASHINGTON DC 20002 460771893 HOUSING DC 58457 120722 THE HERITAGE FOUNDATION MASSACHUSETTS AVENUE PROPERTIES LLC 730 11TH STREET NW FL 4 WASHINGTON DC 20001 461554578 REAL ESTATE DC 580338 10151762 THE HERITAGE FOUNDATION 3RD STREET PROPERTIES LLC 730 11TH STREET NW FL 4 WASHINGTON DC 20001 461548557 REAL ESTATE DC 0 2850109 THE HERITAGE FOUNDATION HERITAGE ACTION FOR AMERICA 214 MASS AVE NE WASHINGTON DC 20002 272244700 ADVOCACY DC 501(C)(4) THE HERITAGE FOUNDATION 0 THE HERITAGE INSTITUTE 214 MASS AVE NE WASHINGTON DC 20002 521193835 PUBLIC CHARITY DC 501(C)(3) LINE 7 N/A 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 HERITAGE ACTION FOR AMERICA J 83697 FMV HERITAGE ACTION FOR AMERICA L 637145 COST OF SERVICES