2020-05-10T15:48:51-05:00 2019-06-30 363990892 Capin Crouse LLP 2435 Research Parkway STE 200 Colorado Springs CO 80920 990 2018-07-01 541660459 Alliance Defending Freedom ALLI 4804440020 15100 North 90th Street Scottsdale AZ 85260 Wayne Swindler Executive VP of Finance & Admi 4804440020 2020-05-10 1 Ted R Batson Jr P00721951 7195286225 139.146.132.42 2020-05-10 16:48:44 ED P 6E257DFAF7771036AE555277151C8A2503DEF65E D454F70ADCB91C94F0D2C0A151FA0D9108FA9D12 2018 2020-09-23 17:36:50Z Michael P Farris 15100 North 90th Street Scottsdale AZ 85260 76822141 0 X www.alliancedefendingfreedom.org X 1993 VA ADF is committed to transforming law and culture so true freedom can flourish. 10 10 307 767 0 0 55125355 57373863 150145 440982 -346969 510652 259465 2623736 55187996 60949233 4939588 4387348 0 0 24624612 29378873 2663365 1275424 8619190 22457730 22220369 54685295 57262014 502701 3687219 35095981 45011387 5694545 7681785 29401436 37329602 X To keep the doors open for the Gospel by advocating for religious freedom, the sanctity of human life, freedom of speech, and marriage and the family. 0 0 14636685 3010263 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 human life, freedom of speech, and marriage and the family. ADF offers exceptional legal advocacy and expertise through our nearly 70 attorneys based in Arizona, Georgia, Washington D.C., New York City, Virginia, and around the world. Together with a network of 3,300-strong allied attorneys, ADF has a nearly 80% success rate in our cases and has won ten Supreme Court victories in the past eight 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. 12056094 1005200 Allied support and training: As an alliance-building legal organization that advocates for the right of people to freely live out their faith, 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, the Young Lawyers Academy, and other training events, 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 2,100 U.S. and international attorneys have completed the ADF Religious Liberty Summit training, and 3,354 ADF allied attorneys have volunteered pro bono legal advocacy services to local and international communities valued at over $215 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, 2,282 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 1,000 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 the character, competence, and credentials. 10309189 Public education: ADF provides information to the public regarding the importance of government recognition of freedom of religion, freedom of speech, 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. 4452414 3382148 Grants and Funding: ADF provides grant funding for legal cases and direct advocacy programs that keep the door open for the gospel by advocating for the right of all people to freely live out their faith, the sanctity of human life from conception until natural death, the freedom of speech for all, the sanctity of marriage and the truth that God has created us male and female, and the fundamental right of parents to direct the upbringing, care, and education for their children. Funding is focused on allies working on matters aligned with strategic legal objectives defined by the U.S. and International advocacy teams. The grant funds cover expenses for litigation, including securing expert witnesses, costs to research, promoting public advocacy, and acquiring strong amicus brief support for cases to ensure the best possibility of success. Following a detailed application process, grant applications are reviewed by a council of senior attorneys. The council meets monthly to facilitate the review of applications and promote support and collaboration with allies working towards objectives that further the ADF mission. Once a grant is awarded, funds are retained until proof of completion of work or expenditures authorized are received from the grant recipient in accordance with the terms of the grant. Disbursements are recorded as an expense when paid. As of this writing, ADF has issued more than 3,300 grants totaling over $50 million. 4452414 3382148 41454382 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 1 0 1 1 1 1 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 X 263 0 1 307 1 0 1 AU CJ BE SZ FR UK 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 1 1 1 1 0 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 X Wayne Swindler 4804440020 15100 North 90th Street Scottsdale AZ 85260 Terry Schlossberg Chairman 8.00 X X 0 0 0 Seth Morgan Vice Chairman 2.00 X X 0 0 0 Mark Maddoux Secretary/Treasurer 5.00 X X 0 0 0 Alfonso Aguilar Director 2.00 X 0 0 0 Marjorie Dannenfelser Director 2.00 X 0 0 0 Tom Minnery Director 2.00 X 0 0 0 Charles Pickering Director 2.00 X 0 0 0 John Rogers Director 2.00 X 0 0 0 Ruth Ross Director 2.00 X 0 0 0 Scott Scharpen Director 2.00 X 0 0 0 Michael Farris President, CEO, General Counsel 60.00 1.00 X 432840 0 25980 Wayne Swindler EVP Finance & Administrati 55.00 1.00 X 238252 0 31694 Tony Johnson Chief Operating Officer 50.00 X 147108 0 24650 Mark Crozet SVP of Development 50.00 X 235195 0 26473 Jeffrey Ventrella Sr. Counsel, SVP of Traini 50.00 X 206896 0 28963 Tim Chandler Sr. Counsel, SVP of Allian 50.00 X 253472 0 28599 Kristen Waggoner SVP of US Legal Division 50.00 X 232276 0 29417 Glen Lavy Corporate Counsel 50.00 X 185178 0 22395 Alan Sears Founder 50.00 1.00 X 404395 0 33880 Jeremy Tedesco Sr. Counsel, VP of U.S. Advocacy 50.00 X 232526 0 22130 Lisa Reschetnikow ADF Foundation Pres/Corp Gen Couns 26.00 24.00 X 204161 0 16061 David Cortman Sr. Counsel, VP of U.S. Litigation 50.00 X 199141 0 30089 Donald Foster Chief Information Officer 50.00 X 192837 0 24040 Amy Shepard Former Key Employee VP of Ecumenical Relations 50.00 X 134759 0 23443 Gary McCaleb Former Officer Sr. Counsel, VP 50.00 X 188512 0 25596 3487548 0 393410 62 1 1 0 MetaSoftTech Solutions 2195 Chandler Blvd Suite 100 Chandler AZ 85224 Web and Software Development 1233076 Masterworks Inc 19462 Powder Hill Place NE Poulsbo WA 98370 Marketing Consulting 1136010 The Hibbard Group LLC PO Box 516 Hainesport NJ 08036 Marketing Consulting 510484 Alaniz Metro Group 1805 E Washington St Mt Pleasant IA 52641 Direct Mail Services 434291 Action Mailing Corp 3165 W Heartland Dr Liberty MO 64068 Direct Mail Services 373350 16 43619 20000 57310244 1500624 57373863 Membership Fees 900099 440982 440982 440982 420778 420778 57806 32947 24859 24859 24859 15920898 8937 15839961 0 80937 8937 89874 89874 Court Awarded Fees 900099 2531679 2531679 Honorarium Income 900099 37602 37602 29596 29596 2598877 60949233 3010263 0 565107 959944 959944 904880 904880 2522524 2522524 2916059 1299252 1116050 500757 591519 495402 65201 30916 20677844 15381979 2458050 2837815 540826 423144 50151 67531 2832228 1978903 468949 384376 1820397 1391064 210623 218710 378463 320855 52673 4935 85823 10639 75184 1275424 1275424 136680 5288 130861 531 1361413 983596 105750 272067 5541282 4015346 564922 961014 1896445 1168107 423119 305219 941338 562023 223945 155370 2177074 1415058 327551 434465 4201506 3582122 167814 451570 2785805 2350573 103381 331851 1867781 1273143 247524 347114 210217 79232 114715 16270 Resource Materials 257001 232210 15264 9527 Financial Services 247843 10107 235717 2019 Professional Dues 131698 88991 30998 11709 57262014 41454382 7188442 8619190 X 5044075 3925740 358978 759357 X 2028480 3202349 3436757 358011 88412 987199 24878 22503 1513369 2429085 32430579 16875877 14847594 15554702 7661828 10582762 -128883 -132123 5623546 12006899 35095981 45011387 4443380 6192252 127005 405710 1124160 1083823 5694545 7681785 X 27909891 34840957 1491545 2488645 29401436 37329602 35095981 45011387 X 3687219 130253 4014755 95939 X 0 1 X 1 0 X 46878366 51471951 50199237 55125355 57373863 261048772 46878366 51471951 50199237 55125355 57373863 261048772 7767 261041005 457626 389805 160214 306271 478584 1792500 1708631 1290999 876160 253704 2598877 6728371 269569643 591127 0.96840 0.97410 X Schedule A, Part II, Line 10, Explanation of Other Income: Miscellaneous Income - 2014 Amount: $ 212,132. 2015 Amount: $ 65,806. 2016 Amount: $ 285,155. 2017 Amount: $ 29,350. 2018 Amount: $ 29,596. Court Awarded Fees - 2014 Amount: $ 1,194,381. 2015 Amount: $ 979,457. 2016 Amount: $ 434,166. 2017 Amount: $ 141,727. 2018 Amount: $ 2,531,679. Honoria - 2014 Amount: $ 302,118. 2015 Amount: $ 245,736. 2016 Amount: $ 156,839. 2017 Amount: $ 82,627. 2018 Amount: $ 37,602. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2734 3374 6108 56305744 56311852 1000000 250000 0 0 1000000 1000000 1500000 6108 6108 250000 250000 375000 2734 2734 6545226 2333923 480690 80000 1307741 7972098 6301839 1003482 400209 40000 1120304 6545226 6327294 731623 510977 40000 1228055 6301839 4869735 1636049 175336 353826 6327294 4285545 770652 57995 180484 63973 4869735 0.82650 0.17350 0 1 1 2000000 2000000 15903342 6285196 9618146 770750 311145 459605 11249494 9326263 1923231 2506993 953273 1553720 15554702 Security Deposits 210154 Due From Related Organizations 1782594 Investments Held by the Foundation 10014151 12006899 Deferred Rent Payable 1083823 1083823 64258905 130253 2913035 267547 3310835 60948070 1163 1163 60949233 60202458 2913035 32947 2945982 57256476 1163 4375 5538 57262014 Part V, Line 4: ADF Foundation, a related organization, maintains the endowment to financially support Alliance Defending Freedom in achieving its objectives. Part XI, Line 2d - Other Adjustments: Transactions related to excluded ADFI entities 136,120. Rent expense included on Part VIII, Line 6b 32,947. Gain on foreign currency translation 98,480. Part XII, Line 2d - Other Adjustments: Rent expense included on Part VIII, Line 6b 32,947. Part XII, Line 4b - Other Adjustments: Excluded ADFI entitiy activity 4,375. Form 990, Schedule D, Part V, Lines 2a-2c: In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2019. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Schedule D, Part V, Lines 2a-2c: Line 2a - Without donor restrictions Line 2b - With donor restrictions Form 990, Schedule D, Part IX: Investments Held by the Foundation of $10,014,151 represents investment assets of the ministry that are held and managed by the Foundation. 1 East Asia and the Pacific 0 0 Grants to Recipients Located in Region 35305 Europe 0 0 Grants to Recipients Located in Region 1787476 Middle East and North Africa 0 0 Grants to Recipients Located in Region 25000 North America 0 0 Grants to Recipients Located in Region 207016 South Asia 0 0 Grants to Recipients Located in Region 329928 Sub-Saharan Africa 0 0 Grants to Recipients Located in Region 25000 South America 0 0 Grants to Recipients Located in Region 112800 Europe 1 13 Program Services Human Rights Legal Work 793921 1 13 0 0 1 13 3316446 0 3316446 East Asia and the Pacific Human Rights Legal Work 16405 Wire transfer Europe Human Rights Legal Work 25000 Wire transfer Europe Human Rights Legal Work 40000 Wire transfer Europe Human Rights Legal Work 6329 Wire transfer Europe Human Rights Legal Work 8000 Wire transfer Middle East and North Africa Human Rights Legal Work 25000 Wire transfer North America Human Rights Legal Work 20000 Wire transfer North America Human Rights Legal Work 26831 Wire transfer North America Human Rights Legal Work 20000 Wire transfer North America Human Rights Legal Work 6000 Wire transfer North America Human Rights Legal Work 38000 Wire transfer North America Human Rights Legal Work 30000 Wire transfer North America Human Rights Legal Work 49585 Wire transfer North America Human Rights Legal Work 5780 Wire transfer South Asia Human Rights Legal Work 20000 Wire transfer South Asia Human Rights Legal Work 8150 Wire transfer South Asia Human Rights Legal Work 7700 Wire transfer Sub-Saharan Africa Human Rights Legal Work 20000 Wire transfer South America Human Rights Legal Work 70000 Wire transfer Europe Human Rights Legal Work 390353 Wire transfer Europe Human Rights Legal Work 594162 Wire transfer Europe Human Rights Legal Work 351182 Wire transfer Europe Human Rights Legal Work 321125 Wire transfer South Asia Human Rights Legal Work 280684 Wire transfer 0 24 Scholarships East Asia and the Pacific 3 18900 Wire transfer Scholarships Europe 7 44100 Wire transfer Scholarships North America 1 6300 Wire transfer Scholarships South America 6 37800 Wire transfer 0 0 0 0 0 0 Part I, Line 2: When Alliance Defending Freedom approves a grant, the funds are retained by Alliance Defending Freedom and set aside to be used exclusively in furtherance of the grant request. Distributions are made pursuant to a written invoice and report demonstrating evidence of expenses actually incurred, time actually invested in furtherance of the goals supported by the grant, and a report as to the activities performed and goals achieved. Part I, line 3: Expenditures are accounted for using the accrual method of accounting. X X X X X X 1 Masterworks Inc 19462 Powder Hill Place NE Poulsbo WA 98370 Digital Marketing Consultant 0 623567 647162 -23595 The Hibbard Group PO Box 516 Hainesport NJ 08036 Radio Marketing 0 437655 512636 -74981 MDS Communications 545 West Juanita Avenue Mesa AZ 85210 Telemarketing 0 100040 115626 -15586 1161262 1275424 -114162 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY 1 American Liberties Institute PO Box 547503 Orlando FL 32854 593309465 501(c)(3) 193610 Religious Liberty, Sanctity of Life Arago Law Firm PLLC PO Box 452275 Kissimmee FL 34745 270188415 N/A 21238 Sanctity of Life Brena Bell & Walker PC 810 N Street Suite 100 Anchorage AK 99501 920127640 N/A 33132 Religious Liberty Bucknam & Black PC PO Box 310 1097 Main Street St Johnsbury VT 05819 261507022 N/A 10972 Family Values Dalton & Tomich PLC The Chrysler House 719 Griswold Street Suite 270 Detroit MI 48226 273296840 N/A 8200 Religious Liberty Downtown Soup Kitchen Hope Center 240 E 3rd Ave PO Box 202684 Anchorage AK 99520 920141715 501(c)(3) 9204 Religious Liberty Ellis Li & McKinstry PLLC Market Place Tower 2025 First Avenue Penthouse A Seattle WA 98121 911240777 N/A 19288 Family Values Fidelis Center for Law and Policy PO Box 2709 Chicago IL 60690 202787890 501(c)(3) 25000 Sanctity of Life Freedom of Conscience Defense Fund PO Box 9520 Rancho Santa Fe CA 92067 300741605 501(c)(3) 183133 Religious Liberty, Sanctity of Life Home School Foundation One Patrick Henry Circle Purcellville VA 20132 521354365 501(c)(3) 36100 Religious Liberty, Family Values Iraqi Christian Human Rights Council 2844 Livernois Road 393 Troy MI 48099 320512600 501(c)(3) 10000 Religious Liberty James Hochberg AAL PO Box 3226 Honolulu HI 96801 990338478 N/A 43819 Religious Liberty, Sanctity of Life Kellum Law Firm 699 Oakleaf Office Lane Suite 107 Memphis TN 38117 621873978 N/A 134030 Religious Liberty, Sanctity of Life Law Office of Nic Cocis 38975 Sky Canyon Dr Suite 211 Murrieta CA 92563 203843470 N/A 37484 Sanctity of Life Law Offices of Herbert Grey 4800 SW Griffith Drive 320 Beaverton OR 97005 760743764 N/A 38500 Religious Liberty Mauck & Baker LLC One N LaSalle Street Suite 600 Chicago IL 60602 364394768 N/A 90496 Religious Liberty, Sanctity of Life Milanovich Law PLLC 100 E Broadway St The Berkeley Room Room Butte MT 59701 832385484 N/A 8812 Religious Liberty MRD Law 3301 West Clyde Place Denver CO 80211 454324795 N/A 10000 Sanctity of Life Nelson Madden Black LLP The French Building 551 Fifth Avenue 31st Floor New York NY 10176 812854576 N/A 11489 Religious Liberty Patrick Henry College 10 Patrick Henry Circle Purcellville VA 20132 541919810 501(c)(3) 11842 Sanctity of Life Pennsylvania Family Institute 23 North Front Street 2nd Floor Harrisburg PA 17101 232509197 501(c)(3) 20475 Religious Liberty Provident Law 14646 N Kierland Boulevard Suite 230 Scottsdale AZ 85254 472962989 N/A 60000 Religious Liberty Roads of Success 2896 Hacienda Drive Duarte CA 91010 260809074 501(c)(3) 30000 Religious Liberty Scheef & Stone LLP 2600 Network Blvd Suite 400 Frisco TX 75034 752753035 N/A 12722 Family Values Story Law Firm LLC 438 E Milsap Rd Suite 103 Fayetteville AR 72703 263980897 N/A 15554 Religious Liberty The Claremont Institute 1317 W Foothill Blvd Ste 120 Upland CA 91786 953443202 501(c)(3) 24581 Religious Liberty The Colson Center for Christian Worldview PO Box 50396 Colorado Springs CO 80949 901117779 501(c)(3) 20000 Sanctity of Life Wadleigh Starr & Peters PLLC 95 Market Street Manchester NH 03101 020504984 N/A 30387 Religious Liberty, Sanctity of Life 11 17 Scholarships 142 897100 Grant - Family Values 1 7780 Part I, Line 2: When the organization approves a grant, the funds are retained by ADF and set aside to be used exclusively in furtherance of the grant request. Distributions are made pursuant to a written invoice and report demonstrating evidence of expenses actually incurred, time actually invested in furtherance of the goals supported by the grant, and a report as to the activities performed and goals achieved. X X X 1 1 X X X X X X 0 0 0 0 0 0 0 0 0 Michael Farris President, CEO, General Counsel 427916 0 0 0 4924 0 11000 0 14980 0 458820 0 0 0 Wayne Swindler EVP Finance & Administrati 236765 0 0 0 1487 0 9814 0 21880 0 269946 0 0 0 Tony Johnson Chief Operating Officer 146990 0 0 0 118 0 6030 0 18620 0 171758 0 0 0 Mark Crozet SVP of Development 234300 0 0 0 895 0 9621 0 16852 0 261668 0 0 0 Jeffrey Ventrella Sr. Counsel, SVP of Traini 206078 0 0 0 818 0 8503 0 20460 0 235859 0 0 0 Tim Chandler Sr. Counsel, SVP of Allian 253308 0 0 0 164 0 8939 0 19660 0 282071 0 0 0 Kristen Waggoner SVP of US Legal Division 231997 0 0 0 279 0 9497 0 19920 0 261693 0 0 0 Glen Lavy Corporate Counsel 183174 0 0 0 2004 0 7415 0 14980 0 207573 0 0 0 Alan Sears Founder 398970 0 0 0 5425 0 11000 0 22880 0 438275 0 0 0 Jeremy Tedesco Sr. Counsel, VP of U.S. Advocacy 232370 0 0 0 156 0 2210 0 19920 0 254656 0 0 0 Lisa Reschetnikow ADF Foundation Pres/Corp Gen Couns 203908 0 0 0 253 0 0 0 16061 0 220222 0 0 0 David Cortman Sr. Counsel, VP of U.S. Litigation 198355 0 0 0 786 0 8209 0 21880 0 229230 0 0 0 Donald Foster Chief Information Officer 191773 0 0 0 1064 0 7968 0 16072 0 216877 0 0 0 Amy Shepard Former Key Employee VP of Ecumenical Relations 134045 0 0 0 714 0 5711 0 17732 0 158202 0 0 0 Gary McCaleb Former Officer Sr. Counsel, VP 186351 0 0 0 2161 0 7865 0 17731 0 214108 0 0 0 Part I, Line 1a First class travel may be provided to employees for air travel of extended length or when availability of reservations is limited to first class. Typically, these are low or no expense due to airline frequent flyer programs which allow upgrades to airline travel. This is for the convenience and business purpose of the organization, not the individual and is not treated as taxable income. Travel for companions is provided when the companion's attendance at meetings, conferences, etc. has a business purpose to the organization. This is not treated as taxable compensation. These expense items are not limited to officers, key employees, and highly compensated individuals, but are available to all employees in the situations described. Some key and highly compensated employees (Tim Chandler and Jeremy Tedesco) were relocated between ADF offices during 2018. ADF grossed up relocation expenses for these team members for the purpose of compensating them and securing them against the liability for additional estimated personal income taxes incurred because of ADF-paid relocation expenses. Janet Bitzko Finance and Accountin Family member of Alan Sears, Founder 48901 Compensation 0 Rebecca Sears Media and Marketing Family member of Alan Sears, Founder 103082 Compensation 0 Michael Farris Jr Legal Content M Family member of Michael Farris, President 64856 Compensation 0 X 89 1500624 Stock Market Quotes 0 0 1 1 Part I, Column (b): The number of contributions represent the number of contributions received, not the number of items donated. Part I, Line 32b: Idonate occastionally accepts gifts of tangible items on the organization's behalf. They dispose of the items and pass the proceeds on to the organization. Form 990, Part VI, Section A, line 8b The organization does not have any committees that have authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b The Form 990 is prepared by an independent CPA firm. Upon completion, the organization's Finance Team reviews the Form 990 through the following process: 1) The CFO and Controller compare the Form 990 to the annual corporate audit and internal financial reports. The CEO then reads the Form 990 for content and clarity. 2) The CFO assigns the Controller and his team to review content, check math totals, and check spelling. 3) Following the above review, the Form 990 is distributed to: A. CEO B. Chairman of the Finance and Audit Committee (FAC) which is responsible for oversight of finance, audit, and tax matters. C. The Chair of the FAC ensures committee members review the Form 990 for material edits and compliance. D. Upon acceptance and approval, the Chairman of the FAC then instructs the CFO to sign and file the 990, and post it on the Board website so the full Board can view the 990. Based on the FAC's recommendation, the Board approves and accepts the 990 at the next regularly scheduled Board meeting. 4) Changes and corrections from the above are addressed at each step. 5) Following the above, the CFO signs and instructs the Form 990 to be filed with the IRS. 6) Upon filing with the IRS, ADF's Form 990 is available for public inspection and distribution to the state governing bodies, foundations, and other requesting entities. Form 990, Part VI, Section B, line 12c The conflict of interest policy covers any Director, Principal Officer, or member of a committee with governing board delegating powers, who has a direct or indirect financial interest. The organization also conducts periodic reviews to ensure operations are consistent with its charitable purposes. Directors shall report possible conflicts of interest to the Chairman of the Board of Directors prior to any action on the transaction by the organization. Upon report of a possible conflict, the Board of Directors shall conduct an investigation and determine whether a conflict of interest does exist and whether it is substantial. If the Board determines that a substantial conflict of interest exists, the interested individual shall not vote on the transaction presenting the conflict. The interested individual may vote only if the Board determines that no conflict exists or the conflict is not substantial. No investigation or determination by the Board shall be required if the interested individual voluntarily agrees to refrain from voting on the transaction presenting the potential conflict of interest. The interested individual may be counted in determining the presence of a quorum. The remaining Board or committee members shall decide if a conflict of interest exists. The minutes of the governing Board and all committees with Board delegated powers shall contain: A. The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the governing Board's or Committee's decision as to whether a conflict of interest in fact existed. B. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceeding. Form 990, Part VI, Section B, Line 12b: The organization requires Board Members to sign a conflict of interest statement each year. Including Officers and Key Employees in this process has been discussed at the Board level, and the organization plans to implement that practice before the end of the current fiscal year. Form 990, Part VI, Section B, line 15 Alliance Defending Freedom maintains a compensation system. CEO compensation is set by the organization's independent Board, and the CEO's compensation is in accordance with the ADF compensation system. Job descriptions are evaluated against independent market sources and compensation data as provided by independent third party resource providers. The management compensation committee approves position grades and pay ranges of all other positions. Annually, ADF also prepares compensation data for the Board's Finance and Audit Committee in accordance with the IRS recommended "rebuttable presumption of reasonableness" process to substantiate the compensation of ADF key employees. The FAC reviews and approves key employee compensation once a year. The ADF Comp Team (comprised of the CFO, COO, and Director of HR) review benchmark data provided by Payscale, Mercer, and other compensation resources to determine the appropriate compensation for all positions in accordance with the ADF compensation philosophy. Compensation above the 60th percentile but less than the 75th percentile of a pay grade requires that the CEO be informed; at or above the 75th percentile requires CEO approval; and above the maximum of the grade requires Board approval. Discussions, decisions, and approvals are recorded in writing, typically via e-mail. This compensation review process last occurred in 2017. Form 990, Part VI, Section C, line 19 The organization's audited financial statements and Form 990 are available on its website. Governing documents and conflict of interest policy are available to the public upon request. Form 990, Part X, Lines 27 - 29: In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2019. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $34,840,957 Line 29 - Net assets with donor restrictions 2,488,645 ___________ Total net assets $37,329,602 Form 990, Part X: The increase in total assets by $9,915,406 includes the $4,014,755 net increase in the amount receivable from ADF Foundation (reported on Part X, Line 15) related to the prior period adjustment (per Part XI, Line 8). The remainder of the increase in total assets reflects the effects on cash, investments, accounts receivables and prepaid expenses from current year operations and net surplus. The increase in net assets by $7,928,166 includes the $4,014,755 prior period adjustment (per Part XI, Line 8). The remainder of the increase in net assets reflects the current year net surplus. Investments owned by Alliance Defending Freedom, but held by ADF Foundation, total $10,014,151 and are reported as Other Assets on Part X, Line 15. Form 990, Part XI, line 9: 15100 Solar net loss as change in investment -3,240. Gain on foreign currency translation 98,480. Other adjustment 699. Form 990, Part XI, Line 8: The Prior Period Adjustment to net assets of $4,014,755 as reported on ADF 990 Part XI, Line 8 is a net of the following: - Reclassification of $5,783,519 from ADF Foundation to ADF of prior years' estate and endowment gifts. - Reclassification of $1,300,728 from ADF Foundation to ADF of prior years' investment income related to investments held on behalf of Alliance Defending Freedom by ADF Foundation. - Reclassification of ($3,069,492) from ADF Foundation to ADF of prior years' seconded salaries and benefits, along with operating and marketing costs. 15100 LLC 15100 N 90th Street Scottsdale AZ 85260 454047093 Own real property AZ 83953 11361040 Alliance Defending Freedom ADF International Austria gemeninnutzige GMBH GMBH 1010 Wien Landesgerichtsstra Vienna AU Human rights legal work AU 285632 554580 Alliance Defending Freedom ADF Foundation 15100 N 90th Street Scottsdale AZ 85260 861158500 Public benefit corporation AZ 501(c)(3) Line 7 Alliance Defending Freedom 1 15100 Solar LLC 15100 N 90th Street Scottsdale AZ 85260 300710109 Own and operate solar energy project AZ 15100 LLC C 103075 1409144 1.00000 1 Alliance Defending Freedom Belgium ASBL Rue Guimark 15 1040 Etterbeek Brussels BE Human rights legal works BE Alliance Defending Freedom C 258701 1.00000 0 ADF International (UK) 16 Old Queen Street London UK Human rights legal works UK Alliance Defending Freedom C 113362 300656 1.00000 0 ADF International (France) 4 Pl Du Marche Aux Poissons Strasbourg FR Human rights legal works FR Alliance Defending Freedom C 4195 281891 1.00000 0 Alliance Defending Freedom Switzerland 28 Chemin Du Petit-Saconnex Geneve SZ Human rights legal works SZ Alliance Defending Freedom C 19254 230686 1.00000 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Alliance Defending Freedom Belgium ASBL B 390353 Funds transferred ADF International (UK) B 321125 Funds transferred ADF International (France) B 594162 Funds transferred Alliance Defending Freedom Switzerland B 351182 Funds transferred ADF Foundation C 20000 Amount of cash transfer ADF Foundation N