Freedom House Inc.

“The executive committee of the board has designated the chairs of audit and finance committees to review the 990 before it is filed with the irs.”

“A conflict of interest exists whenever an individual could benefit directly or indirectly from a decision over which they might have influence, or where a third party might reasonably perceive there to be such a benefit and influence. "related-party transactions" are the most frequent case in point. This is when a transaction, such as the award of a contract or the provision of a benefit, is made between two parties with a separate personal or business relationship wherein one or both would benefit from the transaction, financially or otherwise. One of the best antidotes to a real or perceived conflict of interest is disclosure, so that the potentially "conflicted" decision-maker or beneficiary takes a decision that could later be called into question in a transparent and informed manner and in consultation with others who are removed from the potential conflict. Individuals joining the board of trustees assume a duty to disclose any personal, family, business, or related or affiliated interests they have that could benefit from transactions with freedom house or from the activities or advocacy undertaken by the organization and hence bring into question the propriety of decisions taken by or on behalf of freedom house. Almost any "related-party transaction" is worthy of disclosure and discussion. Not all related-party transactions are illegal or improper, but only a rounded discussion can clarify this. In any case in which a trustee believes that his or her conduct or activities could be construed by a reasonable third party to constitute, or could appear to constitute, a possible conflict of interest, the trustee should disclose the situation to the board's governance and ethics officer, who will review the matter and recommend to the executive committee a course of action to remove the conflict of interest (if indeed one is determined to exist) and preserve the integrity of decisions made by or on behalf of freedom house. At the discretion of the executive committee the matter may be brought to the attention of the full board of trustees. Each trustee shall annually sign a statement that affirms that such person - 1. Has received a copy of this conflicts of interest policy; 2. Has read and understands this policy; and 3. Agrees to comply with the policy in particular with the obligation to disclose any actual or potential conflict of interest, or circumstances that might reasonably be perceived by third parties to constitute a conflict of interest.”

“Based on a recommendation for the board committee on governance and ethics committee, the full board of trustees acts annually to determine the compensation of the president. Further, as part of the annual evaluation process for the president, and to ensure compliance with section 4958 of the internal revenue code (which imposes penalties on ngos that provide excessive compensation to ceos), freedom house is obliged to examine salaries of chief executives of similar organizations. Compensation for other senior officials is determined by the president, as part of an annual performance review process conducted for all employees. The process for this review is overseen by the board's committee on governance and ethics.”

“Freedom house's financial statements are available to the public upon request for the same period of disclosure as set forth in section 6104(d) and a snapshot of our financials are included in the annual report which is posted on our website. However, governing documents and conflict of interest policy are internal documents and not available to the public.”

“Reversal of prior year grant expenses 222,481.”

“The process for overseeing the audit of the financial statements and selection of an independent accountant that audited the financial statements has been consistent with prior years.”