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ObjectId: 201941199349300349 - Submission: 2019-04-29
TIN: 54-1660459
Form
990
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations)
Do not enter social security numbers on this form as it may be made public.
Go to
www.irs.gov/Form990
for instructions and the latest information.
OMB No. 1545-0047
20
17
Open to Public Inspection
A
For the 2018 calendar year, or tax year beginning
07-01-2017
, and ending
06-30-2018
B
Check if applicable:
Address change
Name change
Initial return
Final return/terminated
Amended return
Application pending
C
Name of organization
Alliance Defending Freedom
Doing business as
Number and street (or P.O. box if mail is not delivered to street address)
15100 North 90th Street
Room/suite
City or town, state or province, country, and ZIP or foreign postal code
Scottsdale
,
AZ
85260
D Employer identification number
54-1660459
E Telephone number
(480) 444-0020
G
Gross receipts $
55,633,108
F
Name and address of principal officer:
Michael P Farris
15100 North 90th Street
Scottsdale
,
AZ
85260
I
Tax-exempt status:
501(c)(3)
501(c)
(
)
(insert no.)
4947(a)(1)
or
527
J
Website:
www.alliancedefendingfreedom.org
H(a)
Is this a group return for
subordinates?
Yes
No
H(b)
Are all subordinates
included?
Yes
No
If "No," attach a list. (see instructions)
H(c)
Group exemption number
K
Form of organization:
Corporation
Trust
Association
Other
L
Year of formation:
1993
M
State of legal domicile:
VA
Part I
Summary
1
Briefly describe the organization’s mission or most significant activities:
ADF is committed to transforming law and culture so true freedom can flourish.
2
Check this box
3
Number of voting members of the governing body (
Part VI
, line 1a)
........
3
9
4
Number of independent voting members of the governing body (
Part VI
, line 1b)
.....
4
9
5
Total number of individuals employed in calendar year 2017 (Part V, line 2a)
......
5
289
6
Total number of volunteers (estimate if necessary)
.............
6
695
7a
Total unrelated business revenue from
Part VIII
, column (C), line 12
........
7a
0
b
Net unrelated business taxable income from Form 990-T, line 34
.........
7b
0
Prior Year
Current Year
8
Contributions and grants (
Part VIII
, line 1h)
.........
50,199,237
55,125,355
9
Program service revenue (
Part VIII
, line 2g)
.........
0
150,145
10
Investment income (
Part VIII
, column (A), lines 3, 4, and 7d )
....
91,634
-346,969
11
Other revenue (
Part VIII
, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)
883,081
259,465
12
Total revenue—add lines 8 through 11 (must equal
Part VIII
, column (A), line 12)
51,173,952
55,187,996
13
Grants and similar amounts paid (
Part IX
, column (A), lines 1–3 )
...
3,350,128
4,939,588
14
Benefits paid to or for members (
Part IX
, column (A), line 4)
.....
0
0
15
Salaries, other compensation, employee benefits (
Part IX
, column (A), lines 5–10)
23,917,255
24,624,612
16a
Professional fundraising fees (
Part IX
, column (A), line 11e)
.....
2,798,578
2,663,365
b
Total fundraising expenses (
Part IX
, column (D), line 25)
9,463,288
17
Other expenses (
Part IX
, column (A), lines 11a–11d, 11f–24e)
....
20,238,686
22,457,730
18
Total expenses. Add lines 13–17 (must equal
Part IX
, column (A), line 25)
50,304,647
54,685,295
19
Revenue less expenses. Subtract line 18 from line 12
.......
869,305
502,701
Beginning of Current Year
End of Year
20
Total assets (
Part X
, line 16)
.............
34,851,845
35,095,981
21
Total liabilities (
Part X
, line 26)
.............
5,255,737
5,694,545
22
Net assets or fund balances. Subtract line 21 from line 20
.....
29,596,108
29,401,436
Part II
Signature Block
Sign Here
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
2019-04-29
Signature of officer
Date
Wayne Swindler
Executive VP of Finance & Admi
Type or print name and title
Paid Preparer Use Only
Print/Type preparer's name
Preparer's signature
Date
Check
if
self-employed
PTIN
P00721951
Firm's name
Capin Crouse LLP
Firm's EIN
36-3990892
Firm's address
2435 Research Parkway STE 200
Colorado Springs
,
CO
80920
Phone no.
(719) 528-6225
May the IRS discuss this return with the preparer shown above? (see instructions)
..........
Yes
No
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form
990
(2017)
Page 2
Form 990 (2017)
Page
2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response or note to any line in this
Part III
..............
1
Briefly describe the organization’s mission:
To keep the doors open for the Gospel by advocating for religious freedom, sanctity of life, and marriage and the family.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ?
.....................
Yes
No
If "Yes," describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program
services?
...........................
Yes
No
If "Yes," describe these changes on Schedule O.
4
Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a
(Code:
) (Expenses $
17,082,961
including grants of $
1,735,754
) (Revenue $
374,499
)
Legal Advocacy: Alliance Defending Freedom (ADF) is an alliance-building legal organization that advocates for the right of people to freely live out their faith. ADF champions God-given freedoms that allow for human flourishing while affirming the dignity of every person. ADF exists to facilitate an alliance of like-minded influencers from every sphere of the public square affecting law and culture, and to mobilize this alliance to protect the core values of religious freedom, the sanctity of life, and marriage and family. ADF offers exceptional legal advocacy and expertise through our more than 60 attorneys based in Arizona, Georgia, Washington D.C., New York City and around the world. Together with a network of 3,200-strong allied attorneys, ADF has a nearly 80% success rate in our cases, and has won nine Supreme Court victories in the past seven years.ADF works with over 1,000 allied organizations to create effective strategies for establishing critical legal precedents to preserve religious liberty in state courts, federal courts, and the Supreme Court, as well as international courts and governing bodies including the European Court of Human Rights and The United Nations.ADF serves our network of allies by providing training, coordination, funding, legal expertise, and litigation services in support of our allied attorneys, church and parachurch organization leaders, legislators and legislative staff members, business leaders, clients, student leaders, and other key allies.
4b
(Code:
) (Expenses $
10,104,635
including grants of $
1,234,910
) (Revenue $
)
Allied Support and Training: As an alliance-building legal organization that advocates for the right of people to freely live out their faith, Alliance Defending Freedom (ADF) is committed to equipping allies to defend and promote religious liberty to the best of their ability, and to transform law and culture so true freedom can flourish. To this end, ADF offers world-class training for Christian attorneys and professionals, for law students, and for college students interested in pursuing a career in law, public policy, government, business, and other culture-shaping fields. Through the ADF Summit on Religious Liberty, practicing attorneys, legal advocates, business leaders, entrepreneurs, clergy, policy leaders, and media leaders are invited to participate in world-class training, strategy, and networking sessions around the world. More than 2,042 U.S. and international attorneys have completed the ADF Religious Liberty Summit Training, and 3,226 ADF allied attorneys have volunteered pro bono legal advocacy services to local and international communities valued at over $212 million. This amount is far in excess of the cost of the program. Most U.S. state bars accept accreditation for portions of the legal advocacy training with Continuing Legal Education credit. Through the Blackstone Legal Fellowship, ADF provides training to top Christian law students from around the world on natural law, constitutional jurisprudence, and the history of religious liberty - subjects that currently suffer much neglect in prominent law programs across the United States and internationally. The Blackstone Legal Fellowship equips these students to adhere to the practice of their faith in the legal profession, an arena often hostile to Christianity. The program consists of courses taught by prominent lecturers, internships around the world with some of ADF's most influential allied partners, and professional career placement services. To date, 2,122 students have graduated from the Blackstone Legal Fellowship, representing 227 law schools.ADF offers a similar training through the Arete Academy to college and university students who seek to live out their faith in the fields of law, government, public policy, and business. To date, more than 800 students from top colleges and universities worldwide have participated in Arete Academy, many of whom go on to attend the Blackstone Legal Fellowship during law school. The Academy equips students with character, competence, and credentials to excel in their chosen field.
4c
(Code:
) (Expenses $
9,805,653
including grants of $
221,680
) (Revenue $
)
Public education: ADF provides information to the public regarding the importance of government recognition of freedom of religion, the sanctity of every human life, and the values of marriage and family in the United States and throughout the world. This is done through the use of printed materials, mailings, email alerts, websites, blogs, op-eds, social media, webinars, media and personal appearances, and events. The intent of ADF public education is to inform and raise awareness of the following: The intent of the founders of the constitution of the United States and the Bill of Rights to reflect natural law; entities that seek to distort or repurpose the Constitution's original meaning; U.S. and international challenges to religious freedom, the sanctity of life, and family values; and how and where civil liberties have been jeopardized or thwarted and the efforts of ADF and its allies to reclaim those freedoms. ADF public education efforts also serve to recruit potential allies and to highlight the advocacy work of the alliance in order to position ourselves to serve as the first line of defense for individuals and organizations whose religious freedom is at risk. ADF also requests that the recipients of these educational communications remember its activities in prayer and provides information and details to assist them in intentional and purposeful prayer.
(Code:
) (Expenses $
3,071,860
including grants of $
1,747,244
) (Revenue $
)
Grants and Funding: ADF provides grant funding for legal cases and programs that keep the door open for the Gospel by advocating for religious liberty, the sanctity of life, and marriage and family. This grant funding covers expenses for litigation, including training for expert witnesses and acquiring strong amicus brief support for our cases to ensure the best possibility of success. Grant requests are reviewed and recommended by an independent grants and review committee, which is comprised of expert volunteer attorneys. Under the governing Board of Director's policy, no grant is awarded until it is fully funded and set aside in self-designated accounts. Grants are disbursed upon performance and in accordance with the terms of the grant agreements. As of this writing, ADF has issued more than 3,200 grants totaling over $48 million.
4d
Other program services (Describe in Schedule O.)
(Expenses $
3,071,860
including grants of $
1,747,244
) (Revenue $
)
4e
Total program service expenses
40,065,109
Form
990
(2017)
Page 3
Form 990 (2017)
Page
3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)?
If "Yes," complete Schedule A
.....................
1
Yes
2
Is the organization required to complete
Schedule B, Schedule of Contributors
(see instructions)?
...
2
Yes
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office?
If "Yes," complete Schedule C,
Part I
.............
3
No
4
Section 501(c)(3) organizations.
Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year?
If "Yes," complete Schedule C,
Part II
..............
4
No
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19?
If "Yes," complete Schedule C,
Part III
.................
5
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts?
If "Yes," complete Schedule D,
Part I
..................
6
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas, or historic structures?
If "Yes," complete Schedule D,
Part II
...
7
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets?
If "Yes," complete Schedule D,
Part III
.............
8
No
9
Did the organization report an amount in
Part X
, line 21 for escrow or custodial account liability; serve as a custodian for amounts not listed in
Part X
; or provide credit counseling, debt management, credit repair, or debt negotiation services?
If "Yes," complete Schedule D,
Part IV
..............
9
No
10
Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments?
If "Yes," complete Schedule D,
Part V
......
10
Yes
11
If the organization’s answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable.
a
Did the organization report an amount for land, buildings, and equipment in
Part X
, line 10?
If "Yes," complete Schedule D,
Part VI
.
...................
11a
Yes
b
Did the organization report an amount for investments—other securities in
Part X
, line 12 that is 5% or more of its total assets reported in
Part X
, line 16?
If "Yes," complete Schedule D,
Part VII
.......
11b
No
c
Did the organization report an amount for investments—program related in
Part X
, line 13 that is 5% or more of its total assets reported in
Part X
, line 16?
If "Yes," complete Schedule D,
Part VIII
.......
11c
No
d
Did the organization report an amount for other assets in
Part X
, line 15 that is 5% or more of its total assets reported in
Part X
, line 16?
If "Yes," complete Schedule D,
Part IX
............
11d
Yes
e
Did the organization report an amount for other liabilities in
Part X
, line 25?
If "Yes," complete Schedule D,
Part X
11e
Yes
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)?
If "Yes," complete Schedule D,
Part X
11f
No
12a
Did the organization obtain separate, independent audited financial statements for the tax year?
If "Yes," complete Schedule D, Parts XI and XII
.................
12a
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year?
If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional
12b
Yes
13
Is the organization a school described in section 170(b)(1)(A)(ii)?
If "Yes," complete Schedule E
13
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?
.....
14a
Yes
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more?
If "Yes," complete Schedule F, Parts I and IV
.........
14b
Yes
15
Did the organization report on
Part IX
, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization?
If “Yes,” complete Schedule F, Parts II and IV
.....
15
Yes
16
Did the organization report on
Part IX
, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals?
If “Yes,” complete Schedule F, Parts III and IV
...
16
Yes
17
Did the organization report a total of more than $15,000 of expenses for professional fundraising services on
Part IX
, column (A), lines 6 and 11e?
If "Yes," complete Schedule G,
Part I
(see instructions)
....
17
Yes
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on
Part VIII
, lines 1c and 8a?
If "Yes," complete Schedule G,
Part II
............
18
No
19
Did the organization report more than $15,000 of gross income from gaming activities on
Part VIII
, line 9a?
If "Yes," complete Schedule G,
Part III
...................
19
No
20a
Did the organization operate one or more hospital facilities?
If "Yes," complete Schedule H
....
20a
No
b
If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return?
20b
21
Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on
Part IX
, column (A), line 1?
If “Yes,” complete Schedule I, Parts I and II
.....
21
Yes
22
Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on
Part IX
, column (A), line 2?
If “Yes,” complete Schedule I, Parts I and III
........
22
Yes
Form
990
(2017)
Page 4
Form 990 (2017)
Page
4
Part IV
Checklist of Required Schedules
(continued)
Yes
No
23
Did the organization answer "Yes" to
Part VII
, Section A, line 3, 4, or 5 about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees?
If "Yes," complete Schedule J
.......................
23
Yes
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002?
If “Yes,” answer lines 24b through 24d and complete Schedule K. If “No,” go to line 25a
...............
24a
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?
...
24b
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?
...............
24c
d
Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year?
...
24d
25a
Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations.
Did the organization engage in an excess benefit transaction with a disqualified person during the year?
If "Yes," complete Schedule L,
Part I
............
25a
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ?
If "Yes," complete Schedule L,
Part I
...................
25b
No
26
Did the organization report any amount on
Part X
, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons?
If "Yes," complete Schedule L,
Part II
................
26
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons?
If "Yes," complete Schedule L,
Part III
.........
27
No
28
Was the organization a party to a business transaction with one of the following parties (see Schedule L,
Part IV
instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee?
If "Yes," complete Schedule L,
Part IV
........................
28a
No
b
A family member of a current or former officer, director, trustee, or key employee?
If "Yes," complete Schedule L,
Part IV
.....................
28b
Yes
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner?
If "Yes," complete Schedule L,
Part IV
...
28c
No
29
Did the organization receive more than $25,000 in non-cash contributions?
If "Yes," complete Schedule M
..
29
Yes
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions?
If "Yes," complete Schedule M
.............
30
No
31
Did the organization liquidate, terminate, or dissolve and cease operations?
If "Yes," complete Schedule N,
Part I
.
31
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets?
If "Yes," complete Schedule N,
Part II
...........
32
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3?
If "Yes," complete Schedule R,
Part I
........
33
Yes
34
Was the organization related to any tax-exempt or taxable entity?
If "Yes," complete Schedule R,
Part II
, III, or IV, and
Part V
, line 1
.........................
34
Yes
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
Yes
b
If ‘Yes’ to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)?
If "Yes," complete Schedule R,
Part V
, line 2
...
35b
No
36
Section 501(c)(3) organizations.
Did the organization make any transfers to an exempt non-charitable related organization?
If "Yes," complete Schedule R,
Part V
, line 2
.............
36
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes?
If "Yes," complete Schedule R,
Part VI
37
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for
Part VI
, lines 11b and 19?
Note.
All Form 990 filers are required to complete Schedule O.
............
38
Yes
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response or note to any line in this
Part V
...........
Yes
No
1a
Enter the number reported in Box 3 of Form 1096 Enter -0- if not applicable
..
1a
244
b
Enter the number of Forms W-2G included in line 1a.
Enter -0-
if not applicable
.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners?
..................
1c
Yes
Form
990
(2017)
Page 5
Form 990 (2017)
Page
5
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and
Tax Statements, filed for the calendar year ending with or within the year covered by this return
..................
2a
289
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?
Note.
If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions)
2b
Yes
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?
...
3a
No
b
If “Yes,” has it filed a Form 990-T for this year?
If “No” to line 3b, provide an explanation in Schedule O
...
3b
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)?
..
4a
Yes
b
If "Yes," enter the name of the foreign country:
AU
,
CJ
,
BE
,
SZ
,
FR
,
UK
See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?
..
5a
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
No
c
If "Yes," to line 5a or 5b, did the organization file Form 8886-T?
............
5c
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions?
...
6a
No
b
If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?
......................
6b
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?
....................
7a
No
b
If "Yes," did the organization notify the donor of the value of the goods or services provided?
.....
7b
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?
.........................
7c
No
d
If "Yes," indicate the number of Forms 8282 filed during the year
....
7d
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?
7e
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?
..
7f
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?
......................
7g
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?
..........................
7h
Yes
8
Sponsoring organizations maintaining donor advised funds.
Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year?
.........................
8
9a
Did the sponsoring organization make any taxable distributions under section 4966?
...
9a
b
Did the sponsoring organization make a distribution to a donor, donor advisor, or related person?
...
9b
10
Section 501(c)(7) organizations.
Enter:
a
Initiation fees and capital contributions included on
Part VIII
, line 12
...
10a
b
Gross receipts, included on Form 990,
Part VIII
, line 12, for public use of club facilities
10b
11
Section 501(c)(12) organizations.
Enter:
a
Gross income from members or shareholders
.........
11a
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.)
..........
11b
12a
Section 4947(a)(1) non-exempt charitable trusts.
Is the organization filing Form 990 in lieu of Form 1041?
12a
b
If "Yes," enter the amount of tax-exempt interest received or accrued during the year.
12b
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note.
See the instructions for additional information the organization must report on Schedule O.
13a
b
Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans
....
13b
c
Enter the amount of reserves on hand
............
13c
14a
Did the organization receive any payments for indoor tanning services during the tax year?
.....
14a
No
b
If "Yes," has it filed a Form 720 to report these payments?
If "No," provide an explanation in Schedule O
..
14b
15
Is the organization subject to the section 4960 tax on payment(s) of more than $1,000,000 in remuneration or excess parachute payment(s) during the year? If "Yes," see instructions and file Form 4720, Schedule N
.....
15
16
Is the organization an educational institution subject to the section 4968 excise tax on net investment income?
If "Yes," complete Form 4720, Schedule O
................
16
Form
990
(2017)
Page 6
Form 990 (2017)
Page
6
Part VI
Governance, Management, and Disclosure
For each "Yes" response to lines 2 through 7b below, and for a "No" response to lines
8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response or note to any line in this
Part VI
..............
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year
1a
9
If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
b
Enter the number of voting members included in line 1a, above, who are independent
1b
9
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee?
.................
2
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person?
.
3
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
.
4
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets?
.
5
No
6
Did the organization have members or stockholders?
................
6
No
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body?
....................
7a
No
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body?
...................
7b
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body?
.......................
8a
Yes
b
Each committee with authority to act on behalf of the governing body?
............
8b
No
9
Is there any officer, director, trustee, or key employee listed in
Part VII
, Section A, who cannot be reached at the organization’s mailing address?
If "Yes," provide the names and addresses in Schedule O
.......
9
No
Section B. Policies
(
This Section B requests information about policies not required by the Internal Revenue Code.
)
Yes
No
10a
Did the organization have local chapters, branches, or affiliates?
............
10a
No
b
If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?
10b
11a
Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?
............................
11a
Yes
b
Describe in Schedule O the process, if any, used by the organization to review this Form 990.
.....
12a
Did the organization have a written conflict of interest policy?
If "No," go to line 13
.......
12a
Yes
b
Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts?
..........................
12b
Yes
c
Did the organization regularly and consistently monitor and enforce compliance with the policy?
If "Yes," describe in Schedule O how this was done
...................
12c
Yes
13
Did the organization have a written whistleblower policy?
...............
13
Yes
14
Did the organization have a written document retention and destruction policy?
.........
14
Yes
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official
...........
15a
Yes
b
Other officers or key employees of the organization
................
15b
Yes
If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions).
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year?
......................
16a
No
b
If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements?
............
16b
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filed
AR
,
CA
,
CT
,
FL
,
GA
,
HI
,
IL
,
KS
,
KY
,
MA
,
MD
,
MI
,
MN
,
MS
,
NC
,
NH
,
NJ
,
NY
,
OK
,
OR
,
PA
,
RI
,
SC
,
TN
,
UT
,
VA
,
WI
,
WV
,
NM
18
Section 6104 requires an organization to make its Form 1023 (or 1024-A if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply.
Own website
Another's website
Upon request
Other (explain in Schedule O)
19
Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, address, and telephone number of the person who possesses the organization's books and records:
Wayne Swindler
15100 North 90th Street
Scottsdale
,
AZ
85260
(480) 444-0020
Form
990
(2017)
Page 7
Form 990 (2017)
Page
7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response or note to any line in this
Part VII
..............
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a
Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
List all of the organization’s
current
officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid.
List all of the organization’s
current
key employees, if any. See instructions for definition of "key employee."
List the organization’s five
current
highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.
List all of the organization’s
former
officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.
List all of the organization’s
former directors or trustees
that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.
List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee.
(A)
Name and Title
(B)
Average hours per week (list any hours for related organizations below dotted line)
(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee)
(D)
Reportable compensation from the organization (W- 2/1099-MISC)
(E)
Reportable compensation from related organizations (W- 2/1099-MISC)
(F)
Estimated amount of other compensation from the organization and related organizations
(1)
Terry Schlossberg
......................................................................
Chairman
8.00
.................
X
X
0
0
0
(2)
Tom Minnery
......................................................................
Vice Chairman
2.00
.................
X
X
0
0
0
(3)
Mark Maddoux
......................................................................
Secretary/Treasurer
5.00
.................
X
X
0
0
0
(4)
Richard Korpan part year
......................................................................
Treasurer
2.00
.................
X
X
0
0
0
(5)
Alfonso Aguilar
......................................................................
Director
2.00
.................
X
0
0
0
(6)
Marjorie Dannenfelser
......................................................................
Director
2.00
.................
X
0
0
0
(7)
Seth Morgan
......................................................................
Director
2.00
.................
X
0
0
0
(8)
Charles Pickering
......................................................................
Director
2.00
.................
X
0
0
0
(9)
John Rogers
......................................................................
Director
2.00
.................
X
0
0
0
(10)
Ruth Ross
......................................................................
Director
2.00
.................
X
0
0
0
(11)
Donna Ecton part year
......................................................................
Director
2.00
.................
X
0
0
0
(12)
Allen Ginsborg part year
......................................................................
Director
2.00
.................
X
0
0
0
(13)
Michael Farris
......................................................................
President, CEO, General Counsel
60.00
.................
X
382,973
0
19,826
(14)
Wayne Swindler
......................................................................
EVP Finance & Administration
55.00
.................
X
246,171
0
32,840
(15)
Tony Johnson
......................................................................
Chief Operating Officer
50.00
.................
X
147,027
0
24,592
(16)
Mark Crozet
......................................................................
SVP of Development
50.00
.................
X
239,471
0
26,409
(17)
Jeffrey Ventrella
......................................................................
Sr. Counsel, SVP of Training
50.00
.................
X
206,966
0
28,907
Form
990
(2017)
Page 8
Form 990 (2017)
Page
8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
(continued)
(A)
Name and Title
(B)
Average hours per week (list any hours for related organizations below dotted line)
(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee)
(D)
Reportable compensation from the organization (W- 2/1099-MISC)
(E)
Reportable compensation from related organizations (W- 2/1099-MISC)
(F)
Estimated amount of other compensation from the organization and related organizations
(18)
Tim Chandler
........................................................................
Sr. Counsel, SVP of Alliance Adv
50.00
.......................
X
200,367
0
27,774
(19)
Kristen Waggoner
........................................................................
SVP of US Legal Division
50.00
.......................
X
211,681
0
28,538
(20)
Glen Lavy
........................................................................
Corporate Counsel
50.00
.......................
X
175,312
0
30,006
(21)
Alan Sears
........................................................................
Founder
50.00
.......................
X
433,856
0
33,475
(22)
Benjamin Bull
........................................................................
Chief Counsel/Exec Dir of ADF Int'l
50.00
.......................
X
335,472
0
27,749
(23)
Douglas Napier
........................................................................
SVP of Alliance Relations
50.00
.......................
X
207,677
0
30,260
(24)
David Cortman
........................................................................
Sr. Counsel, VP of U.S. Litigation
50.00
.......................
X
204,910
0
30,108
(25)
Lisa Reschetnikow
........................................................................
ADF Foundation Pres/Corp Gen Couns
28.00
.......................
22.00
X
203,466
0
16,545
(26)
Amy Shepard
........................................................................
VP of Ecumenical Relations
50.00
.......................
X
179,932
0
25,058
(27)
Gary McCaleb
........................................................................
Sr. Counsel, VP
50.00
.......................
X
186,703
0
25,331
1b
Sub-Total
................
c
Total from continuation sheets to
Part VII
, Section A
....
d
Total (add lines 1b and 1c)
...........
3,561,984
0
407,418
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization
55
Yes
No
3
Did the organization list any
former
officer, director or trustee, key employee, or highest compensated employee on line 1a?
If "Yes," complete Schedule J for such individual
..............
3
Yes
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000?
If "Yes," complete Schedule J for such
individual
...........................
4
Yes
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization?
If "Yes," complete Schedule J for such person
........
5
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address
(B)
Description of services
(C)
Compensation
Masterworks Inc
19462 Powder Hill Place NE
Poulsbo
,
WA
98370
Fundraising Consultant
2,344,043
Alaniz Metro Group
1805 E Washington Street
Mt Pleasant
,
IA
52641
Mailing Services
1,508,050
MetaSoftTech Solutions
2195 Chandler Blvd Suite 100
Chandler
,
AZ
85224
Business Analysis
212,189
NextAfter LLC
5810 Tennyson Parkway Ste 102
Plano
,
TX
75024
Strategy Consulting
205,961
Citygate Films LLC
6625 Colton Crawford Circle Suite
Falls Church
,
VA
22042
Video Production
185,015
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization
12
Form
990
(2017)
Page 9
Form 990 (2017)
Page
9
Part VIII
Statement of Revenue
Check if Schedule O contains a response or note to any line in this
Part VIII
.............
(A)
Total revenue
(B)
Related or
exempt
function
revenue
(C)
Unrelated
business
revenue
(D)
Revenue
excluded from
tax under sections
512 - 514
1a
Federated campaigns
..
1a
38,614
b
Membership dues
..
1b
c
Fundraising events
..
1c
d
Related organizations
1d
386,471
e
Government grants (contributions)
1e
f
All other contributions, gifts, grants, and similar amounts not included above
1f
54,700,270
g
Noncash contributions included
in lines 1a - 1f:$
2,159,502
h Total.
Add lines 1a-1f
.......
55,125,355
Business Code
2a
Membership Fees
900099
150,145
150,145
b
c
d
e
f
All other program service revenue .
g
Total.
Add lines 2a–2f
....
150,145
3
Investment income (including dividends, interest, and other
similar amounts)
......
94,529
94,529
4
Income from investment of tax-exempt bond proceeds
5
Royalties
...........
(ii) Personal
(i) Real
6a
Gross rents
8,372
b
Less: rental expenses
3,614
c
Rental income or (loss)
4,758
d
Net rental income or (loss)
......
4,758
4,758
(ii) Other
(i) Securities
7a
Gross amount from sales of assets other than inventory
b
Less: cost or other basis and sales expenses
441,498
c
Gain or (loss)
-441,498
d
Net gain or (loss)
.....
-441,498
-441,498
8a
Gross income from fundraising events (not including $
of contributions reported on line 1c).
See
Part IV
, line 18
....
a
b
Less: direct expenses
...
b
c
Net income or (loss) from fundraising events
..
9a
Gross income from gaming activities.
See
Part IV
, line 19
...
a
b
Less: direct expenses
...
b
c
Net income or (loss) from gaming activities
..
10a
Gross sales of inventory, less
returns and allowances
..
a
b
Less: cost of goods sold
..
b
c
Net income or (loss) from sales of inventory
..
Business Code
Miscellaneous Revenue
11a
Court Awarded Fees
900099
141,727
141,727
b
Honorarium Income
900099
82,627
82,627
c
d
All other revenue
....
30,353
30,353
e
Total.
Add lines 11a–11d
......
254,707
12
Total revenue.
See Instructions.
.....
55,187,996
374,499
0
-311,858
Form
990
(2017)
Page 10
Form 990 (2017)
Page
10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A).
Check if Schedule O contains a response or note to any line in this
Part IX
..............
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of
Part VIII
.
(A)
Total expenses
(B)
Program service
expenses
(C)
Management and
general expenses
(D)
Fundraising
expenses
1
Grants and other assistance to domestic organizations and domestic governments. See
Part IV
, line 21
1,059,497
1,059,497
2
Grants and other assistance to domestic individuals. See
Part IV
, line 22
923,706
923,706
3
Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See
Part IV
, line 15 and 16.
2,956,385
2,956,385
4
Benefits paid to or for members
5
Compensation of current officers, directors, trustees, and key employees
....
2,059,525
1,087,675
578,737
393,113
6
Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B)
....
575,025
483,622
46,316
45,087
7
Other salaries and wages
17,464,368
13,244,913
1,611,740
2,607,715
8
Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions)
....
490,457
381,993
43,653
64,811
9
Other employee benefits
.......
2,503,519
1,728,643
402,767
372,109
10
Payroll taxes
...........
1,531,718
1,171,519
154,508
205,691
11
Fees for services (non-employees):
a
Management
......
680,694
334,525
87,680
258,489
b
Legal
.........
310,776
273,445
35,267
2,064
c
Accounting
...........
63,939
7,974
54,621
1,344
d
Lobbying
...........
e
Professional fundraising services.
See
Part IV
, line 17
2,663,365
2,663,365
f
Investment management fees
......
68,347
3,567
64,218
562
g
Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)
585,948
464,597
22,014
99,337
12
Advertising and promotion
....
6,253,878
5,040,933
339,691
873,254
13
Office expenses
.......
1,705,024
1,014,084
412,379
278,561
14
Information technology
......
957,291
569,574
231,344
156,373
15
Royalties
..
16
Occupancy
...........
2,192,789
1,428,590
326,668
437,531
17
Travel
............
3,829,287
3,358,073
89,252
381,962
18
Payments of travel or entertainment expenses for any federal, state, or local public officials
.
19
Conferences, conventions, and meetings
....
3,069,665
2,826,937
65,964
176,764
20
Interest
...........
21
Payments to affiliates
.......
22
Depreciation, depletion, and amortization
..
2,006,807
1,318,327
292,831
395,649
23
Insurance
...
165,962
91,531
45,397
29,034
24
Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a
Resource Materials
226,832
194,552
22,161
10,119
b
Financial Services
217,991
11,313
204,177
2,501
c
Professional Dues
122,500
89,134
25,513
7,853
d
e
All other expenses
25
Total functional expenses.
Add lines 1 through 24e
54,685,295
40,065,109
5,156,898
9,463,288
26
Joint costs.
Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation.
Check here
if following SOP 98-2 (ASC 958-720).
7,048,902
5,372,242
505,147
1,171,513
Form
990
(2017)
Page 11
Form 990 (2017)
Page
11
Part X
Balance Sheet
Check if Schedule O contains a response or note to any line in this
Part IX
..............
(A)
Beginning of year
(B)
End of year
1
Cash–non-interest-bearing
........
3,554,860
1
2,028,480
2
Savings and temporary cash investments
.........
9,650,174
2
3,436,757
3
Pledges and grants receivable, net
......
279,501
3
4
Accounts receivable, net
.............
4
88,412
5
Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete
Part II
of Schedule L
.............
5
6
Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete
Part II
of Schedule L
..............
6
7
Notes and loans receivable, net
....
7
8
Inventories for sale or use
........
25,700
8
24,878
9
Prepaid expenses and deferred charges
......
1,996,348
9
1,513,369
10a
Land, buildings, and equipment: cost or other basis. Complete
Part VI
of Schedule D
10a
30,014,413
b
Less: accumulated depreciation
10b
15,166,819
15,704,062
10c
14,847,594
11
Investments—publicly traded securities
.
2,127
11
7,661,828
12
Investments—other securities. See
Part IV
, line 11
.....
-140,209
12
-128,883
13
Investments—program-related. See
Part IV
, line 11
..
13
14
Intangible assets
...............
14
15
Other assets. See
Part IV
, line 11
...........
3,779,282
15
5,623,546
16
Total assets.
Add lines 1 through 15 (must equal line 34)
...
34,851,845
16
35,095,981
17
Accounts payable and accrued expenses
.....
4,111,558
17
4,443,380
18
Grants payable
...
18
19
Deferred revenue
.........
19
127,005
20
Tax-exempt bond liabilities
.........
20
21
Escrow or custodial account liability.
Complete
Part IV
of Schedule D
21
22
Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
persons.
Complete
Part II
of Schedule L
..
22
23
Secured mortgages and notes payable to unrelated third parties
..
23
24
Unsecured notes and loans payable to unrelated third parties
..
24
25
Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17 - 24).
Complete
Part X
of Schedule D
1,144,179
25
1,124,160
26
Total liabilities.
Add lines 17 through 25
..
5,255,737
26
5,694,545
Organizations that follow SFAS 117 (ASC 958),
check here
and complete lines 27 through 29, and lines 33 and 34.
27
Unrestricted net assets
27,418,939
27
27,909,891
28
Temporarily restricted net assets
...........
2,177,169
28
1,491,545
29
Permanently restricted net assets
29
Organizations that do not follow SFAS 117 (ASC 958),
check here
and complete lines 30 through 34.
30
Capital stock or trust principal, or current funds
.....
30
31
Paid-in or capital surplus, or land, building or equipment fund
...
31
32
Retained earnings, endowment, accumulated income, or other funds
32
33
Total net assets or fund balances
...........
29,596,108
33
29,401,436
34
Total liabilities and net assets/fund balances
........
34,851,845
34
35,095,981
Form
990
(2017)
Page 12
Form 990 (2017)
Page
12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response or note to any line in this
Part XI
..............
1
Total revenue (must equal
Part VIII
, column (A), line 12)
............
1
55,187,996
2
Total expenses (must equal
Part IX
, column (A), line 25)
............
2
54,685,295
3
Revenue less expenses. Subtract line 2 from line 1
..............
3
502,701
4
Net assets or fund balances at beginning of year (must equal
Part X
, line 33, column (A))
..
4
29,596,108
5
Net unrealized gains (losses) on investments
...............
5
-677
6
Donated services and use of facilities
.................
6
7
Investment expenses
.....................
7
8
Prior period adjustments
.....................
8
-705,316
9
Other changes in net assets or fund balances (explain in Schedule O)
........
9
8,620
10
Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal
Part X
, line 33, column (B))
10
29,401,436
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response or note to any line in this
Part XII
.............
Yes
No
1
Accounting method used to prepare the Form 990:
Cash
Accrual
Other
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?
2a
No
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both:
Separate basis
Consolidated basis
Both consolidated and separate basis
b
Were the organization’s financial statements audited by an independent accountant?
2b
Yes
If ‘Yes,’ check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both:
Separate basis
Consolidated basis
Both consolidated and separate basis
c
If "Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight
of the audit, review, or compilation of its financial statements and selection of an independent accountant?
2c
Yes
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O.
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133?
3a
No
b
If "Yes," did the organization undergo the required audit or audits?
If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits.
3b
Form
990
(2017)
Form 990 (2017)
Additional Data
Software ID:
Software Version:
Form 990, Special Condition Description:
Special Condition Description