Civic Intelligence

Direct Selling Education Foundation

990 • Fiscal year 2013 • EIN 23-7335899

Jan 01, 2013 to Dec 31, 2013 • Filed on Nov 12, 2014

1667 K Street NWSuite 110020006

(202) 452-8866

Siviq Scores

Scores are not available for this record yet.

Balance Sheet

Assets

Up

$11,882,486

Up $578,495 (+5.1%) from 2012

Net Assets

Up

$11,755,660

Up $688,969 (+6.2%) from 2012

Liabilities

Down

$126,826

Down $110,474 (-47%) from 2012

Revenue And Expenses

Revenue

$1,658,048

No earlier filing loaded for comparison.

Expenses

Down

$1,386,942

Down $325,877 (-19%) from 2012

Net Income

$271,106

No earlier filing loaded for comparison.

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$15M$10M$5.0M$0Assets 2012: $11,303,991Liabilities 2012: $237,300Net Assets 2012: $11,066,6912012Assets 2013: $11,882,486Liabilities 2013: $126,826Net Assets 2013: $11,755,6602013Assets 2014: $12,322,268Liabilities 2014: $142,243Net Assets 2014: $12,180,0252014Assets 2015: $11,847,522Liabilities 2015: $173,624Net Assets 2015: $11,673,8982015Assets 2016: $11,610,828Liabilities 2016: $159,681Net Assets 2016: $11,451,1472016Assets 2017: $11,698,770Liabilities 2017: $131,872Net Assets 2017: $11,566,8982017Assets 2018: $10,286,421Liabilities 2018: $155,116Net Assets 2018: $10,131,3052018Assets 2019: $10,652,878Liabilities 2019: $141,912Net Assets 2019: $10,510,9662019Assets 2020: $10,727,401Liabilities 2020: $340,877Net Assets 2020: $10,386,5242020Assets 2021: $11,428,061Liabilities 2021: $365,778Net Assets 2021: $11,062,2832021Assets 2022: $9,162,757Liabilities 2022: $292,284Net Assets 2022: $8,870,4732022Assets 2023: $9,266,853Liabilities 2023: $143,284Net Assets 2023: $9,123,5692023Assets 2024: $9,480,211Liabilities 2024: $313,613Net Assets 2024: $9,166,5982024

Highlighted filing

2013

Assets$11,882,486
Liabilities$126,826
Net Assets$11,755,660

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$3.0M$2.0M$1.0M$0-$1.0MExpenses 2012: $1,712,8192012Revenue 2013: $1,658,048Expenses 2013: $1,386,942Net Income 2013: $271,1062013Revenue 2014: $1,409,422Expenses 2014: $1,185,074Net Income 2014: $224,3482014Revenue 2015: $960,906Expenses 2015: $1,349,566Net Income 2015: -$388,6602015Revenue 2016: $1,366,923Expenses 2016: $1,593,772Net Income 2016: -$226,8492016Revenue 2017: $849,045Expenses 2017: $1,614,909Net Income 2017: -$765,8642017Revenue 2018: $788,048Expenses 2018: $1,688,798Net Income 2018: -$900,7502018Revenue 2019: $1,424,171Expenses 2019: $1,743,281Net Income 2019: -$319,1102019Revenue 2020: $2,034,696Expenses 2020: $1,384,776Net Income 2020: $649,9202020Revenue 2021: $1,544,540Expenses 2021: $1,308,017Net Income 2021: $236,5232021Revenue 2022: $905,056Expenses 2022: $1,427,835Net Income 2022: -$522,7792022Revenue 2023: $587,761Expenses 2023: $1,312,205Net Income 2023: -$724,4442023Revenue 2024: $662,585Expenses 2024: $1,183,383Net Income 2024: -$520,7982024

Highlighted filing

2013

Revenue$1,658,048
Expenses$1,386,942
Net Income$271,106
Jump To
Filing Snapshot
Filing Period
Jan 1, 2013 to Dec 31, 2013
Signed
Nov 12, 2014
Return Version
2013v3.1
Gross Receipts
$8,841,581
Mission and Program Overview

Mission

To serve the public interest by advancing the direct selling industry's support of consumer rights and protection, education about the industry, ethical leadership, and individual economic empowerment.

Engages and educates the public on the ways direct selling empowers individuals, supports communities and strengthens economies worldwide.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$11,125,442$11,624,077▲ $498,635
Cash and Non-Interest-Bearing Accounts$65,029$155,325▲ $90,296
Pledges and Grants Receivable$89,942$82,311▼ $7,631
Prepaid Expenses and Deferred Charges$20,465$19,856▼ $609
Land, Buildings, and Equipment, Net$3,113$917▼ $2,196
Savings and Temporary Cash Investments$0$0→ $0
Accounts Receivable$0$0→ $0
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Other Securities$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Inventories for Sale or Use$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$11,303,991$11,882,486▲ $578,495
Other Assets Total$0$0→ $0
Liabilities
Accounts Payable and Accrued Expenses$237,300$126,826▼ $110,474
Grants Payable$0$0→ $0
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Other Liabilities$0$0→ $0
Deferred Revenue$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$237,300$126,826▼ $110,474
Net Assets / Fund Balance
Permanently Rstr Net Assets$8,115,651$8,115,651→ $0
Unrestricted Net Assets$2,307,502$2,670,629▲ $363,127
Temporarily Rstr Net Assets$643,538$969,380▲ $325,842
Total Net Assets Fund Balance$11,066,691$11,755,660▲ $688,969
Total Liabilities and Net Assets / Fund Balance$11,303,991$11,882,486▲ $578,495

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$917$45,244$46,161

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2013$10,535,000-▲ $1,241,000$791,000$10,985,000
2012$9,765,000$100,000▲ $945,000$275,000$10,535,000
2011$10,504,000$115,000▲ $40,000$894,000$9,765,000
2010$10,303,000$110,000▲ $834,000$743,000$10,504,000
2009$9,516,000$46,000▲ $1,114,000$373,000$10,303,000
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Betty SmithSenior Program DirectorFT$131,640$4,500$166,641
Nancy LaichasProgram DirectorFT$121,317-$121,317
Charles L OrrExecutive DirectorFT$94,451-$94,451
Sarah Baker AndrusVice Chairman--$54,701$54,701
Stan Fredrickdirector--$41,802$41,802
Doris K ChristopherPast Chairman--$30,501$30,501
Dan L MurphyTreasurer--$22,355$22,355

Board Members and Trustees

Revenue and Support

Revenue Composition

Contributions and Grants
$802,538
Program Service Revenue
$0
Investment Income
$855,510
Other Revenue
$0
All Other Contributions
$802,538
Change in Net Assets
$271,106

Audited Revenue Reconciliation

Revenue per Audited Statements
$1,618,050
Revenue Not Reported on Financial Statements
$39,998
Revenue Not Reported on Form 990
$458,253
Other Revenue Adjustments
$7,631
Total Revenue per Audited Statements
$2,076,303
Total Revenue per Form 990
$1,658,048
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$823,382
Salaries, Compensation, and Employee Benefits$511,365
Total Fundraising Expense$200,183
Grants and Similar Amounts Paid$52,195
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$225,004$40,664$44,255$309,923
Fees for Services Other$231,377$16,255$3,099$250,731
Fees for Services Accounting-$106,737-$106,737
Current Officers, Directors, Trustees, and Key Employees$55,721$15,197$30,393$101,311
Fees for Services Management$65,250$13,500$11,250$90,000
Office Expenses$15,440$51,630$17,580$84,650
Occupancy-$83,998-$83,998
Fees for Services Legal-$78,180-$78,180
Travel$18,225$38,516$1,422$58,163
Other Employee Benefits$36,235$7,150$8,527$51,912
Grants to Domestic Orgs$44,000--$44,000
Fees for Service Investment Mgmnt Fees-$32,367-$32,367
Payroll Taxes$19,666$3,927$4,818$28,411
Conferences and Meetings$5,325$14,946$5,907$26,178
Pension Plan Contributions$14,385$2,682$2,741$19,808
Insurance-$10,182-$10,182
Foreign Grants$8,195--$8,195
Depreciation Depletion-$2,196-$2,196
Other Expenses$286,492$-356,683$70,191-
Total Functional Expenses$1,025,315$161,444$200,183$1,386,942

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$1,387,334
Total Expenses per Form 990$1,386,942
Expenses per Audited Statements$1,354,575
Expenses Not Reported on Form 990$32,759
Expenses Not Reported on Financial Statements$32,367
International Activity

Grant and Assistance Recipients

RecipientLocationCategoryPurposeAmount
20-5446480-501(c)(3)Sponsorship & Education$20,000
26-0704711-501(c)(3)Conference Sponsorship$12,000

International Compliance

Activity in boycott countries
No
Foreign corporation ownership
No
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
No
Transfers to foreign corporations
No
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
Yes
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
Yes

Governance Explanations

Part VI - Section B - Line 12C

Dsef conducts an orientation of new board members (which includes discussion and disclosure of any conflicts of interest) as well as ongoing briefings by the board of directors on this topic.

Part VI - Section B - Line 15

Compensation review is the responsibility of the board of directors compensation committee, which consists of non employee board members. This committee has the authority to retain compensation consultants to assist in the evaluation of officers' compensation. The committee annually reviews and approves executive officer compensation and employment agreements, as applicable. The committee can delegate its authority to the ceo for compensation for certain classes of employees. The chairman of the board appoints the chairman of the compensation committee. Minutes are required to report all compensation committee actions and detailed terms of compensation arrangements.

Part VI, Section B, Line 11B

The board of directors has delegated review of form 990 to the treasurer and staff.

Part VI, Section A, line 2

Some members of the Board of Directors of the Foundation also serve on the corporate boards of other members/contributors. If the Foundation has an agreement with another organization and a member serves on that organization's coporate board, this board member is also considered not independent.

Form 990, Part VI, Section A, Line 4

In 2013, the bylaws were amended to bring into compliance with a newly enacted dc nonprofit statute, and to clarify the foundation's relationship with an affiliate.

Filing and Contact Details

Filer

EIN
23-7335899
In Care Of
% THE FOUNDATION
Phone
2024528866

Signing Officer

Name
Adolfo Franco
Title
Secretary
Phone
2024528866
Signed
2014-11-12
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Adolfo Franco
Formed
1973
Legal Domicile
Dc
Voting Board Members
31
Independent Board Members
29
Employees
5
Volunteers
42

Preparer

Preparer
Philip R Baker
Phone
2024528866
Supplemental Narrative

Additional Explanations

Availability of Governing Documents and Procedures

Forms 1023 and 990 are made available upon request. Other organizational documents are not available to the public.

Part XII, Line 2C

There was no change in the audit review process.

Form 990, Part XI, Line 9

Other changes in net assets consist of: change in pledge receivable.............($7,631)

Form 990, Part III, Line 4D

Education initiative (academic program) - expands knowledge and understanding of the fundamental principles of direct selling through academic research and educational programs. Consumer initiative - promotes consumer welfare in the global marketplace by building alliances with consumer protection and public policy leaders in government and non-government organizations. International grants - to enhance the relationship of the direct selling industry with academic and consumer communities around the world. Community - dsef serves as our industry's goodwill ambassador by continually bringing direct selling leaders together to support the communities where we work, live and learn.

Form 990 Part, VI, Section A, Line 3

Hogan lovells us llp performed management duties during transition to a new executive director. The amounts paid for these services totaled $90,000.

Form 990 Part IX Line 11G

Description:consultant fees total fees:250731

Financial Statement Notes

Board Designated Endowment Funds

The Board Designated Endowment Fund is to be used for future operations. The principal of the fund is intended to be held in perpetuity with the revenue from the fund to be used for operations and programs of the Foundation. At the discretion of the Board, principal may be expended. The intention is that principal is to be used only in emergency situations and be limited to no more than 20% of net assets.

Endowments - Permanently Restricted Net Assets

The Foundation maintains three true endowments. The purposes of these endowments are to (1) fund general operations, (2) endow an "Ethics" board seat and (3) to endow an "Academic" board seat.

Changes in pledges receivable

To record change in pledge receivable amounting to $7,631 between years. Contributions are reported on the cash basis for tax purposes versus accrual basis for finanical statement purposes.

Investment Management Fees

Gross-up investment income for $32,367 in management fees paid that were netted against investment income on audited financial statements.

FIN 48 Footnote

The Foundation is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code, except for income taxes on unrelated business income. There were no unrelated business income activities in 2013 or 2012. In addition, the Foundation qualifies for the charitable contribution deduction under IRS Code Section 170 and has been classified as an organization other than a private foundation. The Foundation has filed for and received income tax exemptions in the various jurisdictions where it is required to do so. The Foundation files Form 990 in the U.S. federal jurisdiction and in various states. With few exceptions, the Foundation is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by taxing authorities for years before 2010. Management of the Foundation believes it has no material uncertain tax positions, and accordingly, it will not recognize any liability for unrecognized tax benefits.

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