The Heritage Foundation

“The director of finance & controller compiles the information necessary to complete the form 990. Paid tax preparers then assist in populating the form, which is reviewed by the vice president of finance and accounting. The completed draft is then reviewed by the president, executive vice president, chief operating officer, and general counsel. A complete final draft of the form 990 is provided to the board for final comments before filing with the internal revenue service.”

“All new employees are required to follow all policies contained within the foundation's employee handbook, including the foundation's conflict of interest policy. Separately, the foundation has in place a formal conflict of interest policy that requires all members of the board to disclose, annually, any and all financial interests or holdings that may be a conflict of interest to his/her duties as a trustee of the organization. Additional disclosures are required promptly when a previously unknown conflict arises or is discovered. In the case of a potential conflict, the policy sets forth a formal process for the board to examine the potential conflict and then approve, disapprove, or take further appropriate action. Further, the policy provides the board the authority to implement and enforce its oversight of these issues.”

“Compensation, including salaries, bonuses, and benefits, for the foundation's president, executive vice president, chief operating officer, and certain other officers is approved by the board, and based on the recommendation of the board's executive committee. In 2024, the executive committee was comprised of three independent, volunteer board members who were not, and have never been, employees of the foundation. Each year, the executive committee meets to develop compensation recommendations to the full board and its meetings are documented contemporaneously. In developing its recommendations, the committee considers market data and other salary and benefit survey information regarding the compensation of similarly situated executives, because the management and leadership skills of the foundation's executives have a significant effect on the organization's success, a significant portion of cash compensation is in the form of a bonus. Bonuses are contingent on achieving the organization's strategic objectives as well as their own performance and achievement of established goals. Goals are reviewed mid-year and annually, and monthly reports of foundation activities are provided to the board. In considering and approving total compensation for 2024, the executive committee and the board also approved benefits provided under an employer-funded qualified retirement plan, group health, life, and long-term disability and long-term care insurance plans, and other benefits.”

“The foundation makes its form 990 and financial statements available upon request in compliance for the period of disclosure as set forth in section 6104(d).”

“Consulting services: program service expenses 10,414,287. Management and general expenses 534,300. Fundraising expenses 91,141. Total expenses 11,039,728. Independent contractors: program service expenses 6,159,671. Management and general expenses 96,248. Fundraising expenses 261,382. Total expenses 6,517,301. Non-consulting service fees: program service expenses 1,443,973. Management and general expenses 124,402. Fundraising expenses 98,984. Total expenses 1,667,359. Outside author: program service expenses 4,664. Management and general expenses 91. Fundraising expenses 38. Total expenses 4,793.”

“Change in value of interest rate swaps 703,610. Change in value of split-interest agreements -457,051.”

“The audit oversight process has remained unchanged from the previous year.”