2012-09-27T11:48:11-05:00 2011-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2011-01-01 237327730 THE HERITAGE FOUNDATION HERI 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 DR EDWIN J FEULNER JR 2025464400 2012-09-27 1 WILLIAM E TURCO CPA P00369217 3012963600 2011 2016-02-24 21:20:13Z X DR EDWIN J FEULNER JR 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 150274063 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. 25 23 504 31 0 0 73957186 65687562 432344 206109 2243003 4222024 1621331 2055288 78253864 72170983 474170 525384 0 0 31184583 32858870 4111462 3952210 15598163 44608035 42697364 80378250 80033828 -2124386 -7862845 196167571 174109394 31347893 30877847 164819678 143231547 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 26560427 223413 (SEE SCHEDULE O)PUBLIC POLICY RESEARCH: THE HERITAGE FOUNDATION PRODUCES YEARLY HUNDREDS OF RESEARCH PAPERS, 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 2011 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://THF_MEDIA.S3.AMAZONAWS.COM/2012/PDF/THF_2011ANNREP_WEB.PDF. 24102552 202738 206109 (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 2011, OUR LECTURES AND SEMINARS PROGRAM PRODUCED 188 PUBLIC EVENTS ATTRACTING NEARLY 13,000 ATTENDEES. OUR RESOURCE BANK CONFERENCE DRAWS MORE THAN 580 CONSERVATIVE POLICY EXPERTS, ACTIVISTS, CONGRESS MEMBERS AND ENTREPRENEURS FOR THREE DAYS OF WORKSHOPS AND DISCUSSIONS. AND OUR INTERN PROGRAM PROVIDED ALMOST 200 YOUNG PEOPLE AN INVALUABLE WORK-STUDY EXPERIENCE IN WASHINGTON, DC. WE TRAINED AND GRADUATED NEAR 40 YOUNG CAPITOL HILL STAFFERS FROM OUR CONGRESSIONAL FELLOWS PROGRAM AND HOSTED NEARLY 40 MEETINGS FOR OUR MEMBERS, ATTRACTING MORE THAN 7,000 TOTAL PARTICIPANTS. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2011 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://THF_MEDIA.S3.AMAZONAWS.COM/2012/PDF/THF_2011ANNREP_WEB.PDF. 11797297 99233 (SEE SCHEDULE O)MEDIA AND GOVERNMENT RELATIONS: THE HERITAGE FOUNDATION DISTRIBUTES ITS RESEARCH PRODUCT 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 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 4,800 RADIO AND TELEVISION APPEARANCES IN 2011, AND EARNED MORE THAN 1,200 OP-ED PLACEMENTS IN MAJOR PRINT AND ONLINE MEDIA OUTLETS. WE SENT OUT A DAILY NEWSLETTER, THE MORNING BELL, TO OVER 250,000 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 2011 ANNUAL REPORT, AVAILABLE ONLINE AT HTTP://THF_MEDIA.S3.AMAZONAWS.COM/2012/PDF/THF_2011ANNREP_WEB.PDF. 62460276 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 1 0 0 0 1 0 0 1 0 1 236 0 1 504 1 0 0 0 0 0 0 0 0 0 0 X 25 23 0 0 0 0 0 0 0 1 1 0 0 0 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 MEG ALLEN 2.00 X 0 0 0 DOUGLAS ALLISON 2.00 X 0 0 0 LARRY P ARNN PHD 2.00 X 0 0 0 BELDEN BELL 2.00 X 0 0 0 DAVID BROWN 2.00 X 0 0 0 MIDGE DECTER 2.00 X 0 0 0 MALCOLM STEVE FORBES 2.00 X 0 0 0 ROBERT J HERBOLD 2.00 X 0 0 0 TODD HERRICK 2.00 X 0 0 0 WILLIAM JERRY HUME 2.00 X 0 0 0 KAY COLE 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 2.00 X 0 0 0 ROBERT PENNINGTON 2.00 X 0 0 0 J FREDERICH RENCH 2.00 X 0 0 0 WILLIAM 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 EDWIN FEULNER JR 40.00 X X 1097788 0 71893 PHILLIP TRULUCK 40.00 X X 690260 0 71858 EDWIN MEESE III 40.00 X 346330 0 69943 DAVID ADDINGTON 40.00 X 206373 0 30692 BECKY DUNLOP 40.00 X 213468 0 42872 JOHN-PETER FOGARTY 40.00 X 201416 0 43778 MICHAEL FRANC 40.00 X 225423 0 58695 MIGUEL GONZALEZ 40.00 X 212739 0 52506 KIM HOLMES 40.00 X 251040 0 64943 TED SCHELENSKI 40.00 X 209503 0 42515 MATTHEW SPALDING 40.00 X 164374 0 46191 MICHAEL SPILLER 40.00 X 199243 0 51247 JOHN VON KANNON 40.00 X 256931 0 66908 GENEVIEVE WOOD 40.00 X 221680 0 39253 KATHLEEN ROWAN 40.00 X 109028 0 17767 ERNEST ISTOOK 40.00 X 276960 0 22575 ELAINE CHAO 40.00 X 265553 0 22575 STUART BUTLER 40.00 X 256463 0 70908 JAMES FOSTER 40.00 X 210088 0 35694 JAMES CARAFANO 40.00 X 192683 0 16862 5807343 0 939675 83 0 1 0 PREMIERE RADIO NETWORKS 15260 VENTURA BLVD SHERMAN OAKS CA 91403 MKTG & ADVERTISING 2236555 GIVE RIGHT INC 6715 SUNSET BLVD LOS ANGELOS CA 90028 MKTG & FUNDRAISING 2221838 REBECCA HAGELIN COM AND MKT 4572 25TH RD NORTH ARLINGTON VA 22207 MKTG & ADVERTISING 1348430 CONRAD DIRECT INC 300 KNICKERBOCKER RD CRESSKILL NJ 07626 MAILING CONTACT MANAGEMENT 1286633 MERKLE RESPONSE 100 JAMISON COURT HAGERSTOWN MD 21740 DIRECT MAIL & FULFILLMENT SERVICES 1249847 5 65687562 2388496 65687562 PUBLICATION SALES 900099 206109 206109 206109 1025263 1025263 59497 59497 1290312 0 1290312 1290312 1290312 79643353 1656488 76345329 1757751 3298024 -101263 3196761 3196761 OTHER INCOME 900099 705479 705479 705479 72170983 206109 0 6277312 525384 525384 5414772 4587537 211661 615574 22237056 18867996 872658 2496402 1244948 1045773 47574 151601 2305973 1937048 88120 280805 1656121 1391164 63287 201670 267440 222326 42433 2681 67000 55698 10630 672 3952210 3952210 5340606 5245637 84987 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6187141 104561 234621 369275 705479 7601077 343487584 1059607 0.91650 0.88750 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 80033828 80033828 1000000 250000 0 0 1000000 1000000 2000000 3000000 250000 250000 500000 750000 122278641 2357900 -8275637 14290469 385690 101684745 114267069 11346041 15188077 18195322 327224 122278641 94681554 13182545 19910200 13173578 333652 114267069 134559493 13468346 -37525326 15600264 220695 94681554 0.90200 0.01380 0.08420 0 0 8733268 8733268 54461508 16885595 37575913 10916936 7823903 3093033 49402214 INVESTMENTS IN LIMITED PARTNERSHIPS 49809514 F TRUSTS AND ANNUITIES 16007809 F 65817323 DEFERRED COMPENSATION PLANS 3833588 SPLIT-INTEREST AGREEMENTS 12386160 INTEREST RATE SWAP 59289 16279037 72170983 80033828 -7862845 -12927299 -797987 -13725286 -21588131 58445697 -12927299 -797987 -13725286 72170983 0 72170983 80033828 0 80033828 0 80033828 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: THE 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 FOUNDATION HAS BEEN CLASSIFIED BY THE INTERNAL REVENUE SERVICE AS A PUBLIC CHARITY AND IS NOT A PRIVATE FOUNDATION. CONTRIBUTIONS TO THE FOUNDATION ARE DEDUCTIBLE FOR FEDERAL INCOME, ESTATE, AND GIFT TAX PURPOSES. INCOME, WHICH IS NOT RELATED TO EXEMPT PURPOSES, IS SUBJECT TO TAX. 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 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 FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50 PERCENT 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 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 2008. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -924,400. UNREALIZED GAIN - INTEREST RATE SWAP 126,413. TOTAL TO SCHEDULE D, PART XI, LINE 8: -797,987. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED LOSS - INTEREST RATE SWAP 126,413. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENT -924,400. CENTRAL AMERICA AND THE CARIBBEAN - 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 5502 EAST ASIA AND THE PACIFIC - 0 1 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 200161 EUROPE (INCLUDING ICELAND & GREENLAND) - 0 2 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 102102 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 922 NORTH AMERICA 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 1463 RUSSIA & THE NEWLY INDEPENDENT STATES - 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 6564 SOUTH AMERICA - ARGENTINA, BOLIVIA, 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 16643 SOUTH ASIA - AFGHANISTAN, BANGLADESH, 0 0 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 9605 0 3 0 0 0 3 342962 0 342962 0 0 0 0 1 0 X X X 1 ODELL SIMMS & ASSOCIATES 7704 LEESBURG PIKE FALLS CHURCH VA 22043 CONSULTS ON DIRECT MAIL PROGRAM 0 17040315 674607 16365708 GIVE RIGHT INC 11500 OYLMPIC BLVD SUITE 540 LOS ANGELOS CA 90064 TELEMARKETING PROGRAMS & THANK YOU FOLLOW UPS 0 4825853 2221838 2604015 KMA DIRECT COMMUNICATION 7160 DALLAS PARKWAY STE 400 PLANO TX 75024 CONSULTS ON MULTI CHANNEL/MEDIA PROGRAM 0 1910645 772862 1137783 WARFIELD & WALSH INC 601 S WASHINGTON STREET ALEXANDRIA VA 223143004 CONSULTS ON DIRECT MAIL PROGRAM 0 1649556 242972 1406584 BMD FULL SERVICE DIRECT MARKETING WASHINGTON ST 300 ALEXANDRIA VA 22314 CONSULTS ON DIRECT MAIL PROGRAM 0 65214 20052 45162 WEST DIRECT 11808 MIRACLE HILL DRIVE OMAHA NE 681544403 TELEMARKETING PROGRAMS 0 24004 14379 9625 PM GROUP 7550 IH-10 WEST SUITE 510 SAN ANTONIO TX 78229 CONSULTS ON DIRECT MAIL PROGRAM 0 21471 5500 15971 25537058 3952210 21584848 AL AK AZ AR CO CT DE DC FL HI ID IA IL IN KS KY LA ME MA MD MT MS MO MI NE NV NH NJ NY NM NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY 1 CAPITOL HILL - BUSINESS IMPROVEMENT DISTRICT (CHBID) 30 MASSACHUSETTS AVE NE WASHINGTON DC 20002 522232461 501(C)(6) 40529 CLEAN, SAFTEY, AND BEUTIFICATION PROGRAMS IN THE CAPITOL HILL COMMUNITY HERITAGE ACTION FOR AMERICA 321 D ST NE WASHINGTON DC 20002 272244700 501(C)(4) 400000 PROGRAM AND ADMINISTRATIVE ACTIVITIES, NOT TO INCLUDE LOBBYING PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE HERITAGE FOUNDATION MAKES PERIODIC CONTRIBUTIONS, BUT IS NOT A GRANT-MAKING ENTITY IN THE TRADITIONAL SENSE. OUR CONTRIBUTIONS TO OTHER QUALIFYING ORGANIZATIONS IN 2011 COMPRISED APPROXIMATELY APPROXIMATELY SIX TENTHS OF ONE PERCENT OF OUR TOTAL ANNUAL EXPENSE. IF AN ORGANIZATION SENDS A GRANT REQUEST, THE ORGANIZATION IS RESEARCHED AND REVIEWED BY STAFF TO DETERMINE IF A GRANT ALIGNS WITH OUR 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 ORGANIZATION. X X X X X 0 0 0 0 0 0 0 0 0 EDWIN FEULNER JR 501263 0 575300 0 21225 0 49000 0 25533 0 1172321 0 0 0 PHILLIP TRULUCK 347625 0 330300 0 12335 0 49000 0 25291 0 764551 0 0 0 EDWIN MEESE III 283601 0 55300 0 7429 0 47050 0 26536 0 419916 0 0 0 DAVID ADDINGTON 193373 0 12100 0 900 0 30692 0 2725 0 239790 0 0 0 BECKY DUNLOP 174381 0 36300 0 2787 0 31418 0 13752 0 258638 0 0 0 JOHN-PETER FOGARTY 165827 0 35300 0 289 0 28514 0 20129 0 250059 0 0 0 MICHAEL FRANC 177965 0 46300 0 1158 0 35802 0 25196 0 286421 0 0 0 MIGUEL GONZALEZ 171779 0 40150 0 810 0 29648 0 25114 0 267501 0 0 0 KIM HOLMES 201478 0 47300 0 2262 0 42050 0 25192 0 318282 0 0 0 TED SCHELENSKI 166647 0 36300 0 6556 0 31062 0 14160 0 254725 0 0 0 MATTHEW SPALDING 149535 0 14300 0 539 0 23298 0 24985 0 212657 0 0 0 MICHAEL SPILLER 163328 0 35300 0 615 0 28389 0 24448 0 252080 0 0 0 JOHN VON KANNON 197839 0 55300 0 3792 0 44050 0 25238 0 326219 0 0 0 GENEVIEVE WOOD 178964 0 42300 0 416 0 32081 0 9264 0 263025 0 0 0 ERNEST ISTOOK 272994 0 150 0 3816 0 22575 0 2972 0 302507 0 0 0 ELAINE CHAO 262900 0 300 0 2353 0 22575 0 2037 0 290165 0 0 0 STUART BUTLER 212125 0 40300 0 4038 0 46050 0 27262 0 329775 0 0 0 JAMES FOSTER 205536 0 3650 0 902 0 19016 0 18638 0 247742 0 0 0 JAMES CARAFANO 167833 0 23300 0 1550 0 16862 0 2156 0 211701 0 0 0 R HAGELIN COMM & MKTG FIRM OWNED BY FORMER OFFICER REBECCA HAGELIN 1348430 FORMER V.P. OF COMMUNICATIONS, REBECCA HAGELIN, IS A GREATER THAN 35% OWNER OF REBECCA HAGELIN COMMUNICATIONS & MARKETING. THE FIRM FACILITATES A PORTION OF OUR ADVERTISING AND SPONSORSHIP RELATIONSHIPS. ALL OF THE AMOUNT PAID TO THE FIRM IN 2010 REPRESENTS PASS THROUGH PAYMENTS TO ADVERTISERS, NOT CONSULTING FEES. 0 X 1 82500 EXPERT OPINION/VALUATION X 152 2300991 MARKET VALUE FROM SALES X EVENT SPONSORSHIP 2 5005 AT COST 0 1 0 UNRELATED BUSINESS TAXABLE INCOME FORM 990, PAGE 1, PART I, LINE 7 THE FORM 990-T FOR THE ORGANIZATION WILL BE FILED WITH THE IRS AFTER THE FORM 990 IS FILED. THE FORM 990-T HAS BEEN EXTENDED UNTIL 11/15/2012. LOSS ON OPERATIONS FORM 990, PAGE 1, PART 1, LINE 19 NOTE ON LOSS RESULTING FROM EXPENSES EXCEEDING REVENUES IN 2011: THE MAJORITY OF THE LOSS IS THE RESULT OF WRITING OFF TWO LARGE PLEDGES THAT THE FOUNDATION DETERMINED WERE NOT COLLECTIBLE. PRIOR TO 2011, THE FOUNDATION HAS NEVER WRITTEN OFF ANY PLEDGES OF THIS MAGNITUDE. FORM 990, PART VI, SECTION B, LINE 11 THE CHIEF ACCOUNTANT COMPILES NECESSARY INFORMATION TO COMPLETE FORM 990. INDEPENDENT PAID TAX PREPARERS THEN ASSIST IN COMPLETING THE FORM FOR FURTHER REVIEW BY MANAGEMENT. DRAFTS ARE REVIEWED BY THE FOUNDATION'S CONTROLLER AND ASSISTANT CONTROLLER. THE COMPLETED DRAFT IS THEN REVIEWED BY THE V.P. OF FINANCE & OPERATIONS. ONCE ALL CORRECTIONS HAVE BEEN MADE, THE FORM IS REVIEWED BY THE PRESIDENT/CEO AND EXECUTIVE V.P. THOUGH THE BOARD DOES NOT REVIEW THE 990 PRIOR TO FILING, THE BOARD DOES RECEIVE A COMPLETED COPY OF THE 990 AFTER FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL NEW EMPLOYEES ARE PROVIDED A COPY OF THE FOUNDATION'S EMPLOYEE HANDBOOK, WHICH ADDRESSES CONFLICTS OF INTEREST. EMPLOYEES MUST SIGN AND ACKNOWLEDGE THEY HAVE REVIEWED AND WILL ADHERE TO ALL POLICIES CONTAINED WITHIN THE FOUNDATION'S EMPLOYEE HANDBOOK. SPECIFICALLY, THE EMPLOYEE HANDBOOK STATES, "NO EMPLOYEE WILL DO ANYTHING IN THE CONDUCT OF HERITAGE OPERATIONS THAT WOULD VIOLATE ANY FEDERAL, STATE, OR LOCAL LAW, REGULATION, OR ORDINANCE. OUTSIDE WORK WHICH IS IN CONFLICT WITH THE EFFORTS OF THE FOUNDATION IS PROHIBITED." THE HERITAGE FOUNDATION ALSO MAINTAINS A CONFLICT OF INTEREST POLICY FOR ALL TRUSTEES, WHO ARE REQUIRED TO SIGN AN ANNUAL DISCLOSURE OF CONFLICTS OF INTEREST. 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 2010, 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 2010, 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 990 AND FINANCIAL STATEMENTS, AVAILABLE UPON REQUEST IN COMPLIANCE WITH THE LAW. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -12,927,299. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -924,400. UNREALIZED GAIN - INTEREST RATE SWAP 126,413. TOTAL TO FORM 990, PART XI, LINE 5: -13,725,286. REASON FOR FILING OF AMENDED 2011 FORM 990 FORM 990, PAGE 1, B, AMENDED RETURN AN AMENDED 2011 FORM 990 IS BEING FILED TO CORRECT THE AMOUNT OF GROSS RECEIPTS ASSOCIATED WITH THE FUND RAISING ACTIVITIES OF GIVE RIGHT, INC., A PROFESSIONAL FUNDRAISING ORGANIZATION REPORTED IN PART I OF THE SCHEDULE G. THE CORRECTED AMOUNT OF GROSS RECEIPTS FROM THE CONDUCT OF GIVE RIGHT INC.'S FUNDRAISING ACTIVITIES IS $4,825,853. IN ADDITION, SCHEDULE F IS BEING CHANGED TO SHOW THE UPDATED EXPENDITURE AMOUNTS AND THE NUMBER OF EMPLOYEES, AGENTS, AND INDEPENDENT CONTRACTORS FOR EUROPE AND EAST ASIA AND THE PACIFIC. 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 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 HERITAGE ACTION FOR AMERICA B 400000 CASH HERITAGE ACTION FOR AMERICA P 70436 FMV HERITAGE ACTION FOR AMERICA I 120267 FMV HERITAGE ACTION FOR AMERICA K 585088 COST OF SERVICES