2011-08-09T06:35:23-05:00 2010-12-31 RSM MCGLADREY INC 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2010-01-01 237327730 THE HERITAGE FOUNDATION HERI 2025464400 214 MASSACHUSETTS AVENUE NE WASHINGTON DC 20002 DR EDWIN J FEULNER JR 2025464400 2011-08-08 1 BILL TURCO 3012963600 2010 2016-02-24 21:20:13Z DR EDWIN J FEULNER JR 214 MASS AVE NE WASHINGTON DC 20002 128474643 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 21 530 231 0 0 71755400 73957186 331511 432344 -4677979 2243003 1821785 1621331 69230717 78253864 80611 474170 0 0 28570672 31184583 3159528 4111462 15150318 37231874 44608035 69042685 80378250 188032 -2124386 183342796 196167571 27148226 31347893 156194570 164819678 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 27178337 39556 (SEE SCHEDULE O)PUBLIC POLICY RESEARCH: THE HERITAGE FOUNDATION PRODUCES HUNDREDS OF RESEARCH PAPERS, WEB MEMOS, BLOG POSTS, FACT SHEETS, 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 2010 ANNUAL REPORT, AVAILABLE ONLINE AT HERITAGE.ORG 10732842 416777 (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, WHO TOTAL MORE THAN 710,000. THE FOUNDATION CONDUCTED HUNDREDS OF BRIEFINGS FOR OFFICIALS, LAWMAKERS AND THEIR STAFF ON ISSUES RANGING FROM FEDERAL SPENDING AND UNFUNDED LIABILITIES TO HOMELAND SECURITY AND TAX POLICY. OUR ANALYSTS MADE OVER 3,800 RADIO AND TELEVISION APPEARANCES IN 2010, AND EARNED MORE THAN 1,400 OP-ED PLACEMENTS IN MAJOR PRINT AND ONLINE MEDIA OUTLETS. WE SENT OUT A DAILY NEWSLETTER, THE MORNING BELL, TO OVER 155,000 SUBSCRIBERS, AND PUBLISHED THOUSANDS OF BLOG POSTS ON THE FOUNDRY. WE ALSO CONDUCTED IN-DEPTH ISSUES-RELATED SEMINARS FOR MEMBERS OF THE MEDIA, ADDRESSING TOPICS SUCH AS HEALTHCARE AND HOMELAND SECURITY. FINALLY, HERITAGE CONDUCTED "BOOT CAMPS" TEACHING COMPUTER ASSISTED RESEARCH AND REPORTING SKILLS TO MORE THAN 80 JOURNALISTS. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2010 ANNUAL REPORT, AVAILABLE ONLINE AT HERITAGE.ORG. 25293165 13122 1501320 (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. OUR LECTURES AND SEMINARS PROGRAM PRODUCES 185 PUBLIC EVENTS ATTRACTING NEARLY 12,000 ATTENDEES. OUR RESOURCE BANK CONFERENCE DRAWS MORE THAN 540 CONSERVATIVE POLICY EXPERTS, ACTIVISTS, CONGRESS MEMBERS AND ENTREPRENEURS FOR THREE DAYS OF WORKSHOPS AND DISCUSSIONS. AND OUR INTERN PROGRAM PROVIDES MORE THAN 160 YOUNG PEOPLE AN INVALUABLE WORK-STUDY EXPERIENCE IN WASHINGTON, DC. WE TRAINED AND GRADUATED AROUND 40 YOUNG CAPITOL HILL STAFFERS FROM OUR CONGRESSIONAL FELLOWS PROGRAM AND HOSTED FOUR NATIONAL MEETINGS AND 54 REGIONAL MEETINGS FOR OUR MEMBERS, ATTRACTING NEARLY 10,000 TOTAL PARTICIPANTS. ADDITIONAL INFORMATION IS AVAILABLE IN OUR 2010 ANNUAL REPORT, AVAILABLE ONLINE AT HERITAGE.ORG 63204344 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 1 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 0 0 1 252 0 1 530 1 0 0 0 0 0 1 1 0 0 0 0 X 23 21 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 X VERN MCHARGUE 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 F ALLISON 2.00 X 0 0 0 LARRY P ARNN 2.00 X 0 0 0 HON BELDEN H BELL 2.00 X 0 0 0 MIDGE DECTOR 2.00 X 0 0 0 STEVE FORBES 2.00 X 0 0 0 ROBERT J HERBOLD 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 2.00 X 0 0 0 ROBERT PENNINGTON 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 EDWIN J FEULNER JR 40.00 X X 1025922 0 66161 PHILLIP N TRULUCK 40.00 X X 636207 0 66161 EDWIN MEESE III 40.00 X 342215 0 64211 DAVID ADDINGTON 40.00 X 57475 0 918 BECKY DUNLOP 40.00 X 206202 0 41035 JOHN-PETER FOGARTY 40.00 X 184252 0 29935 MICHAEL G FRANC 40.00 X 220373 0 52340 MIGUEL GONZALEZ 40.00 X 192921 0 44845 KIM R HOLMES 40.00 X 241039 0 59097 TED E SCHELENSKI 40.00 X 204116 0 40518 MICHAEL A SPILLER 40.00 X 157942 0 41830 JOHN VON KANNON 40.00 X 256438 0 61211 GENEVIEVE E WOOD 40.00 X 213533 0 37131 KATHLEEN ROWAN 40.00 X 105173 0 15322 ERNEST ISTOOK 40.00 X 272409 0 22575 ELAINE CHAO 40.00 X 258431 0 29044 STUART M BUTLER 40.00 X 254466 0 67101 JAMES D FOSTER 40.00 X 202959 0 32484 JAMES M TALENT 40.00 X 186075 0 15988 5218148 0 787907 79 0 1 0 KADCON CORPORATION 1053 31ST ST NW WASHINGTON DC 20007 CONSTRUCTION 2641311 PREMIERE RADIO NETWORKS 15260 VENTURA BLVD SHERMAN OAKS CA 91403 MKTG & ADVERTISING 2399992 CONRAD DIRECT INC 300 KNICKERBOCKER RD CRESSKILL NJ 07626 MAILING CONTACT MANAGEMENT 1993170 GIVE RIGHT INC 11500 OYLMPIC BLVD SUITE 540 LOS ANGELOS CA 90064 MKTG & FUNDRAISING 1867617 REBECCA HAGELIN COM AND MKT 4572 25TH RD NORTH ARLINGTON VA 22207 MKTG & ADVERTISING 1544200 45 73957186 1388582 73957186 PUBLICATION SALES 900099 432344 432344 432344 1154256 1154256 41725 41725 1217067 1217067 1217067 1217067 50675504 634022 49509633 711146 1165871 -77124 1088747 1088747 OTHER INCOME 900099 362539 362539 362539 78253864 432344 0 3864334 474170 474170 5218448 4447064 194541 576843 19909729 16966701 742224 2200804 1659000 1407516 63083 188401 2796558 2372634 106338 317586 1600848 1358179 60872 181797 206507 147859 54451 4197 37811 27072 9970 769 4111462 4111462 6792161 5266158 66312 1459691 4876959 3772109 198316 906534 18103595 14686242 217960 3199393 1700138 1481105 18635 200398 1939887 1863703 71549 4635 2961431 2235673 28850 696908 3555551 3240113 36080 279358 217171 170056 5189 41926 3102187 2429171 74126 598890 179617 161416 14663 3538 STAFF TRAINING 415570 339256 52296 24018 HONORARIA/WRITER'S FEES 400499 264699 6600 129200 TEMPORARY STAFFING 118951 93448 1533 23970 80378250 63204344 2023588 15150318 X 17048620 13759665 0 3288955 750 1000 7948531 6395996 16732068 16993033 1009048 1310709 74002988 23067175 47191877 50935813 44748246 46014116 65322431 74078431 389845 438473 183342796 196167571 8381758 9172851 3779999 5186666 14986469 16988376 27148226 31347893 X 134079679 143688866 20914891 19830812 1200000 1300000 156194570 164819678 183342796 196167571 X -2124386 10749494 X 0 1 1 X 0 X 46853892 47138503 62910593 71755400 72557778 301216166 46853892 47138503 62910593 71755400 72557778 301216166 9450400 291765766 3244525 4046946 4096511 2911829 2406313 16706124 3922121 6187141 104561 234621 369275 10817719 328740009 1781060 0.88750 0.86930 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 93352178 3841751 13306124 7725000 327224 102447829 77648479 2654127 17133224 3750000 333652 93352178 121139738 45519 -33316083 10000000 220695 77648479 0.99000 0.01000 0 0 8521789 8521789 53732891 15128088 38604803 11748308 7939087 3809221 50935813 INVESTMENTS IN LIMITED PARTNERSHIPS 56624360 F TRUSTS AND ANNUITIES 17454071 F 74078431 DEFERRED COMPENSATION PLANS 3876672 SPLIT-INTEREST AGREEMENTS 12926002 INTEREST RATE SWAP 185702 16988376 78253864 80378250 -2124386 12113196 -1363702 10749494 8625108 89003358 12113196 -1363702 10749494 78253864 0 78253864 80378250 0 80378250 0 80378250 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, AS AMENDED. 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. ON JANUARY 1, 2009, THE FOUNDATION ADOPTED 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% 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. WITH FEW EXCEPTIONS, THE FOUNDATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2007. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -1,399,408. UNREALIZED GAIN - INTEREST RATE SWAP 35,706. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNREALIZED GAIN - INTEREST RATE SWAP 35,706. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENT -1,399,408. 1 CENTRAL AMERICA AND THE CARIBBEAN - PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 2409 EAST ASIA AND THE PACIFIC - PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 98599 EUROPE (INCLUDING ICELAND & GREENLAND) - PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 26130 RUSSIA & THE NEWLY INDEPENDENT STATES - 1 PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 79677 SOUTH AMERICA PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 835 SOUTH ASIA PROGRAM SERVICE RESEARCH, MEDIA & GOVERNMENT RELATIONS, AND EDUCATION 2476 1 0 1 210126 0 210126 0 0 0 0 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, 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 2010 COMPRISED 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 1 ODELL SIMMS & ASSOCIATES 7704 LEESBURG PIKE FALLS CHURCH VA 22043 CONSULTS ON DIRECT MAIL PROGRAM 0 20732690 943001 19789689 KMA DIRECT COMMUNICATION 7160 DALLAS PARKWAY STE 400 PLANO TX 75024 CONSULTS ON MULTI CHANNEL/MEDIA PROGRAM 0 6289380 870420 5418960 WARFIELD & WALSH INC 601 S WASHINGTON STREET ALEXANDRIA VA 223143004 CONSULTS ON DIRECT MAIL PROGRAM 0 2473868 328292 2145576 GIVE RIGHT INC 11500 OYLMPIC BLVD SUITE 540 LOS ANGELOS CA 90064 TELEMARKETING PROGRAMS & THANK YOU FOLLOW UPS 0 1926003 1867617 58386 BMD FULL SERVICE DIRECT MARKETING WASHINGTON ST 300 ALEXANDRIA VA 22314 CONSULTS ON DIRECT MAIL PROGRAM 0 554294 102132 452162 31976235 4111462 27864773 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) 36388 CLEAN, SAFETY AND BEAUTIFICATION 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 2010 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 1 1 X X X X X 0 0 0 0 0 0 0 0 0 EDWIN J FEULNER JR 477097 0 535300 0 13525 0 49000 0 23690 0 1098612 0 0 0 PHILLIP N TRULUCK 328404 0 300300 0 7503 0 49000 0 23484 0 708691 0 0 0 EDWIN MEESE III 281089 0 55300 0 5826 0 47050 0 24694 0 413959 0 0 0 BECKY DUNLOP 169348 0 35000 0 1854 0 30606 0 13836 0 250644 0 0 0 JOHN-PETER FOGARTY 153692 0 30300 0 260 0 24117 0 10552 0 218921 0 0 0 MICHAEL G FRANC 172938 0 46300 0 1135 0 35179 0 23354 0 278906 0 0 0 MIGUEL GONZALEZ 163075 0 29100 0 746 0 27684 0 22751 0 243356 0 0 0 KIM R HOLMES 192566 0 46300 0 2173 0 41936 0 23350 0 306325 0 0 0 TED E SCHELENSKI 162609 0 36300 0 5207 0 30089 0 14244 0 248449 0 0 0 MICHAEL A SPILLER 157050 0 300 0 592 0 24669 0 23906 0 206517 0 0 0 JOHN VON KANNON 192566 0 60300 0 3572 0 44050 0 23431 0 323919 0 0 0 GENEVIEVE E WOOD 172988 0 40150 0 395 0 31312 0 8379 0 253224 0 0 0 ERNEST ISTOOK 266575 0 2650 0 3184 0 22575 0 2525 0 297509 0 0 0 ELAINE CHAO 255875 0 300 0 2256 0 22575 0 8506 0 289512 0 0 0 STUART M BUTLER 195566 0 55300 0 3600 0 46050 0 26455 0 326971 0 0 0 JAMES D FOSTER 199605 0 2400 0 954 0 18113 0 16331 0 237403 0 0 0 JAMES M TALENT 182162 0 3150 0 763 0 15988 0 1340 0 203403 0 0 0 R HAGELIN COMM & MKTG FIRM OWNED BY FORMER OFFICER REBECCA HAGELIN 1544200 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 2 4250 EXPERT OPINION/VALUATION X 106 1051801 MARKET VALUE FROM SALES X SOFTWARE 1 332532 MARKET COMPS 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 THE CHIEF ACCOUNTANT COMPILES NECESSARY INFORMATION TO COMPLETE FORM 990. 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 GAINS ON INVESTMENTS: 12,113,196. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -1,399,408. UNREALIZED GAIN - INTEREST RATE SWAP 35,706. TOTAL TO FORM 990, PART XI, LINE 5: 10,749,494. HERITAGE ACTION FOR AMERICA 321 D STREET NE WASHINGTON DC 20002 272244700 ADVOCACY DC 501(C)(4) THE HERITAGE FOUNDATION 0 0 1 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 HERITAGE ACTION FOR AMERICA B 400000 CASH HERITAGE ACTION FOR AMERICA F 26037 FMV HERITAGE ACTION FOR AMERICA I 52356 FMV HERITAGE ACTION FOR AMERICA K 245525 COST OF SERVICES