Civic Intelligence

Cato Institute

990 • Fiscal year 2015 • EIN 23-7432162

Apr 01, 2014 to Mar 31, 2015 • Filed on Nov 10, 2015

1000 Massachusetts Ave NWWashington, DC 20001-5403

(202) 842-0200

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

16th percentile

0.04x

Higher debt load relative to assets than 16% of similar nonprofits.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2015

Liabilities / Revenue

12th percentile

0.07x

Higher debt load relative to revenue than 12% of similar nonprofits.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2015

Net Margin

80th percentile

22%

Higher net margin than 80% of similar nonprofits.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2015

Top Officer Pay

78th percentile

$625,000

Higher top officer pay than 78% of similar nonprofits.

Top officer pay equals 1.7% of source-year revenue.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Source year 2015

Asset Growth

82nd percentile

13%

Faster asset growth than 82% of similar nonprofits.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Annualized from 2014 to 2015

Revenue Growth

86th percentile

27%

Faster revenue growth than 86% of similar nonprofits.

2015 filings • 501(c)3 • $50M-$100M nonprofits • Annualized from 2014 to 2015

Assets

Up

$72,934,328

Up $8,414,077 (+13%) from 2014

Net Assets

Up

$70,269,969

Up $7,814,989 (+13%) from 2014

Liabilities

Up

$2,664,359

Up $599,088 (+29%) from 2014

Revenue

Up

$36,069,847

Up $7,719,737 (+27%) from 2014

Expenses

Up

$28,246,157

Up $3,707,592 (+15%) from 2014

Net Income

Up

$7,823,690

Up $4,012,145 (+105%) from 2014

Historical Trend

Balance Sheet Trend

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

$200M$150M$100M$50M$0Assets 2011: $57,206,316Liabilities 2011: $5,236,839Net Assets 2011: $51,969,4772011Assets 2012: $67,083,178Liabilities 2012: $4,364,662Net Assets 2012: $62,718,5162012Assets 2013: $60,639,117Liabilities 2013: $1,907,422Net Assets 2013: $58,731,6952013Assets 2014: $64,520,251Liabilities 2014: $2,065,271Net Assets 2014: $62,454,9802014Assets 2015: $72,934,328Liabilities 2015: $2,664,359Net Assets 2015: $70,269,9692015Assets 2016: $71,182,786Liabilities 2016: $2,208,095Net Assets 2016: $68,974,6912016Assets 2017: $78,534,414Liabilities 2017: $2,819,813Net Assets 2017: $75,714,6012017Assets 2018: $84,854,531Liabilities 2018: $3,434,041Net Assets 2018: $81,420,4902018Assets 2019: $84,375,877Liabilities 2019: $2,953,938Net Assets 2019: $81,421,9392019Assets 2021: $103,817,347Liabilities 2021: $2,724,232Net Assets 2021: $101,093,1152021Assets 2025: $190,480,742Liabilities 2025: $3,404,763Net Assets 2025: $187,075,9792025

Highlighted filing

2015

Assets$72,934,328
Liabilities$2,664,359
Net Assets$70,269,969

Operations Trend

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

$80M$60M$40M$20M$0-$20MExpenses 2011: $23,648,1952011Expenses 2012: $22,344,7282012Expenses 2013: $26,028,8452013Revenue 2014: $28,350,110Expenses 2014: $24,538,565Net Income 2014: $3,811,5452014Revenue 2015: $36,069,847Expenses 2015: $28,246,157Net Income 2015: $7,823,6902015Revenue 2016: $27,869,293Expenses 2016: $29,162,114Net Income 2016: -$1,292,8212016Revenue 2017: $36,889,645Expenses 2017: $30,150,105Net Income 2017: $6,739,5402017Revenue 2018: $36,679,802Expenses 2018: $30,381,673Net Income 2018: $6,298,1292018Revenue 2019: $30,261,118Expenses 2019: $30,601,421Net Income 2019: -$340,3032019Revenue 2021: $43,021,209Expenses 2021: $28,207,239Net Income 2021: $14,813,9702021Revenue 2025: $62,821,387Expenses 2025: $47,370,866Net Income 2025: $15,450,5212025

Highlighted filing

2015

Revenue$36,069,847
Expenses$28,246,157
Net Income$7,823,690
Jump To
Filing Snapshot
Filing Period
Apr 1, 2014 to Mar 31, 2015
Signed
Nov 10, 2015
Return Version
2014v5.0
Gross Receipts
$38,692,472
Mission and Program Overview

Mission

To originate, disseminate, and increase understanding of public policies based on the principles of individual liberty, limited government, free markets, and peace.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$37,656,873$36,993,246▼ $663,627
Cash and Non-Interest-Bearing Accounts$19,130,674$22,048,544▲ $2,917,870
Investments in Publicly Traded Securities$3,268,672$5,489,241▲ $2,220,569
Pledges and Grants Receivable$3,726,690$5,142,213▲ $1,415,523
Accounts Receivable$111,643$2,707,172▲ $2,595,529
Inventories for Sale or Use$239,011$344,562▲ $105,551
Prepaid Expenses and Deferred Charges$295,828$123,846▼ $171,982
Savings and Temporary Cash Investments$5,356$0▼ $5,356
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
Loans From Officers Directors$0$0→ $0
Total Assets$64,520,251$72,934,328▲ $8,414,077
Other Assets Total$85,504$85,504→ $0
Liabilities
Accounts Payable and Accrued Expenses$1,415,588$1,897,885▲ $482,297
Other Liabilities$576,765$720,251▲ $143,486
Deferred Revenue$72,918$46,223▼ $26,695
Grants Payable$0$0→ $0
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Tax Exempt Bond Liabilities$0$0→ $0
Total Liabilities$2,065,271$2,664,359▲ $599,088
Net Assets / Fund Balance
Unrestricted Net Assets$50,374,102$58,708,736▲ $8,334,634
Temporarily Rstr Net Assets$9,070,781$8,551,136▼ $519,645
Permanently Rstr Net Assets$3,010,097$3,010,097→ $0
Total Net Assets Fund Balance$62,454,980$70,269,969▲ $7,814,989
Total Liabilities and Net Assets / Fund Balance$64,520,251$72,934,328▲ $8,414,077

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$24,706,954$10,279,418$34,986,372
Land$9,656,037-$9,656,037
Other Land Buildings$2,630,255$2,670,745$5,301,000

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2014$3,010,097$0▲ $77,101$71,280$3,015,918
2013$3,010,097$0▲ $51,086$51,086$3,010,097
2012$2,010,097$1,000,000▲ $80,912$80,912$3,010,097
2011$2,010,097$0▲ $61,866$61,866$2,010,097
2010$2,010,097$0▲ $66,530$66,530$2,010,097
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Edward H CraneFormer PresidentFT$625,000-$625,000
John a AllisonPresidentFT$527,724$25,570$553,294
David BoazExecutive Vice PresidentFT$269,357$26,700$296,057
William B LindseyVice President for ResearchFT$198,184$23,892$222,076
Roger PilonVP for Legal AffairsFT$180,197$34,610$214,807
Patrick MichaelsDir., CTR for the Stdy of Sci.FT$175,976$19,901$195,877
Andrei IllarionovSenior FellowFT$172,250$13,780$186,030
Mark Calabriadirector financial reg studiesFT$166,675$17,724$184,399
TERRY BROWN through 814Chief Administrative OfficerFT$121,027$10,935$131,962
Gayllis WardSecretaryFT$107,500$2,829$110,329
JON HEIMERMAN beginning 914VP/Chief Admin. OfficerFT$61,016$9,286$70,302

Board Members and Trustees

Highest Paid Contractors

ContractorServicesLocationCompensation
Rst MarketingPrinting And Mailing1272 CORPORATE PARK DRIVE, Forest, VA 24551$656,096
Network Alliance INCOutsourced It12001 SUNRISE VALLEY DRIVE, Reston, VA 20191$497,506
Level 3 Communications LLCInternet And HostingPO BOX 910182, Denver, CO 80291$267,151
Conrad Direct INCPrinting And Mailing300 KNICKERBOCKER ROAD, Cresskill, NJ 07626$239,801
Kns Contracting LLCBuilding Services4022 BLACKBURN LANE, Burtonsville, MD 20866$212,065
Revenue and Support

Revenue Composition

Contributions and Grants
$34,969,047
Program Service Revenue
$775,021
Investment Income
$93,318
Other Revenue
$232,461
All Other Contributions
$34,969,047
Change in Net Assets
$7,823,690

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
No
Third parties used for noncash contributions
No

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Securities Publicly Traded65$2,869,666Fair Market Value (FMV) Date of Receipt
Total Noncash Contributions65$2,869,666-

Audited Revenue Reconciliation

Revenue per Audited Statements
$36,213,779
Revenue Not Reported on Financial Statements
$-143,932
Revenue Not Reported on Form 990
$843,307
Other Revenue Adjustments
$-143,932
Total Revenue per Audited Statements
$37,057,086
Total Revenue per Form 990
$36,069,847
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$15,045,093
Other Expenses$12,427,096
Total Fundraising Expense$5,106,450
Grants and Similar Amounts Paid$773,968
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$9,665,614$553,049$1,200,706$11,419,369
Office Expenses$2,677,693$227,021$1,173,399$4,078,113
Depreciation Depletion$1,119,353$115,017$322,016$1,556,386
Fees for Services Other$714,661$61,580$471,272$1,247,513
Current Officers, Directors, Trustees, and Key Employees$433,416$406,783$356,230$1,196,429
Travel$670,824$19,266$426,233$1,116,323
Other Employee Benefits$843,073$123,808$99,400$1,066,281
Conferences and Meetings$671,699$12,058$242,691$926,448
Payroll Taxes$691,697$56,229$108,482$856,408
Occupancy$580,744$70,849$165,390$816,983
Information Technology$450,627$50,118$128,032$628,777
Pension Plan Contributions$437,659$25,650$43,297$506,606
Other Expenses$228,098$90,071$154,092$472,261
Foreign Grants$429,718--$429,718
Grants to Domestic Individuals$344,250--$344,250
Advertising$230,478$276$61,760$292,514
Insurance$264$162,437-$162,701
Fees for Service Investment Mgmnt Fees$5,650$116,664-$122,314
Fees for Services Legal$30,703$29,080-$59,783
Fees for Services Accounting-$43,514-$43,514
Interest-$13,667-$13,667
Total Functional Expenses$942,289$2,177,137$326,030$1,268,319

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Audited Statements$29,242,097
Total Expenses per Form 990$28,246,157
Expenses per Audited Statements$28,212,553
Expenses Not Reported on Form 990$1,029,544
Expenses Not Reported on Financial Statements$33,604
Other Expense Adjustments$33,604
International Activity

International Summary

Employees
6
Spending
$429,718

International Compliance

Foreign grant records maintained
Yes
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

International Activities

RegionActivityServicesOfficesEmployeesSpending
Europe (Including Iceland and Greenland)GrantmakingConferences-2$380,000
South AmericaGrantmaking--2$29,670
South AmericaProgram Services--2$20,048
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
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Capital Lease Obligation$442,192
Charitable Gift Annuity$246,809
Long-term Accrued Expenses$31,250
Governance and Compliance

Governance Checklist

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

Filer

Filer Name
Cato Institute
EIN
23-7432162
In Care Of
% VALERIE USHER
Phone
2028420200
Address
1000 MASSACHUSETTS AVE NW, WASHINGTON, DC 20001-5403

Signing Officer

Name
Jon Heimerman
Title
VP/ Chief Admin. Officer
Phone
2028420200
Signed
2015-11-10
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Peter Goettler
Formed
1974
Legal Domicile
Ks
Voting Board Members
20
Independent Board Members
19
Employees
248
Volunteers
19

Preparer

Firm
Cohnreznick Llp
Address
6720B ROCKLEDGE DRIVE SUITE 750, BETHESDA, MD 20817
Preparer
DANIEL D O'SHEA
Phone
3016547555
Supplemental Narrative

Additional Explanations

Process Used to Review Form 990

Part vi, section a, question 11b a draft 990 is provided to each member for review and comment prior to finalization.

Monitoring and Enforcement of Compliance With Conflict of Interest Policy

PART VI, SECTION B, QUESTION 12C CATO REVIEWS CONFLICT OF INTEREST DISCLOSURES. IF A POTENTIAL CONFLICT OF INTEREST ARISES, THE DIRECTOR, officer or key employee WITH THE CONFLICT IS REQUIRED TO CORRECT THE SITUATION OR either step down from the board or FACE TERMINATION FROM EMPLOYMENT.

Process for Determining Compensation

Part vi, section b, question 15a independent contractor reviews compensation/benefits. The board discusses and approves executive compensation/benefits based on results of the independent study.

Members, Stockholders or Other Persons Who May Elect the Governing Body

Part vi, section a, question 7a members of the board vote to approve and remove members.

Decisions of the Governing Body Subject to Approval

Part vi, section a, question 7b members elect the board of directors and may remove directors with a majority vote.

How the Organization Makes Organizing Documents Available to the Public

Part vi, section c, question 19 cato's bylaws, articles of incorporation, and conflict of interest policy are available to anyone who requests them. Further, cato has always complied, and will continue to comply, with the mandate that form 990 be made publicly available.

statement of program service accomplishments

Part III, Line 4a Continued telecom, internet, and information policy; and trade and immigration. The impact of Cato's work was tangible across the board, but especially in several key areas: healthcare; finance, banking, and monetary policy; and law and civil liberties. Cato is one of the biggest and most effective filers of amicus curiae briefs in the Supreme Court. In all briefs Cato maintains an unwavering commitment to articulating for the Court how the principles of liberty and the original public meaning of the Constitution should guide decisions. The Institute established a 10-1 record in cases where it filed amicus briefs in the Supreme Court's most recent term, including the year's most anticipated case, Burwell v. Hobby Lobby. The Institute remained at the forefront of the public discourse regarding the Patient Protection and Affordable Care Act. Michael Cannon, Cato's director of health policy studies, has been recognized by major news outlets as a prolific and important voice on health care policy and legal challenges to the law since its inception. And as the policy climate inevitably shifts, Cannon continues to provide timely analysis and advance practical solutions to the nation's health care problems. Cato positioned itself to develop and communicate a comprehensive policy road map for a return to sound money with the launch of its new Center for Monetary and Financial Alternatives. The Center's ultimate goal is to build the intellectual foundation for a free-market banking system. An impressive group of scholars has already been assembled to articulate policy alternatives, including George Selgin, one of the foremost authorities on banking history and monetary theory, who gave up his academic tenure at the University of Georgia to direct the Center; James A. Dorn, the architect of Cato's internationally renowned Annual Monetary Conference; and a Council of Academic Advisors that includes two Nobel laureates in economics. Their expertise encompasses topics from the gold standard to cryptocurrencies, to bank regulation. Cato scholars Julian Sanchez, Jim Harper, and Patrick Eddington are the Institute's resident experts on issues at the intersection of technology and policy: privacy, intellectual property, internet governance and regulation, telecom regulation, and free speech and technology. They have led the public discourse about the propriety of NSA surveillance with blog posts and op-eds, and a huge social media presence. At the 2014 Cato Institute Surveillance Conference, journalists, technologists, and intelligence officials came together in an attempt to examine questions about international and domestic surveillance, transparency and democratic accountability, and law and technology. The conference featured a diverse array of perspectives, including Eric Schmidt of Google, Rep. Thomas Massie (R-KY), Alex Joel and Robert S. Litt of the Office of the Director of National Intelligence, and NSA whistleblower Edward Snowden by video chat. A final highlight is Cato's work to promote freedom around the world. Flemming Rose, foreign affairs editor at the Danish newspaper Jyllands-Posten, joined the Cato Institute as an author and adjunct scholar in 2014. Rose was responsible for the September 2005 publication of the Prophet Muhammad cartoons that initiated a major international controversy over self-censorship in the face of intimidation and freedom of speech. Cato is proud to have published Rose's latest book, The Tyranny of Silence. Rose recently participated in several Cato Institute events to share unique insights about the role of free speech in an increasingly multicultural, multireligious, and multiethnic world, including a Book Forum in Washington and an online Reddit AMA ("Ask Me Anything") live public discussion. Outreach, communications, and events Cato's media and marketing teams disseminate Cato's message across print and online platforms, including blogs, op-eds, TV and radio appearances, and soci

Financial Statement Notes

INTENDED USE OF THE ORGANIZATION'S ENDOWMENT FUNDS

SCHEDULE D, PART V, QUESTION 4 TO SUPPORT THE OPERATIONAL COSTS OF CATO'S CONSTITUTIONAL STUDIES and student PROGRAMs THROUGH THE ANNUAL EARNINGS OF THE ENDOWMENT NET ASSETS.

Other Revenue Included on Return Not on Books

Schedule d, part xi, line 4b cost of goods sold: (143,932)

Other Expenses Included on Books Not on Form 990

Schedule d, part xii, line 2d cost of goods sold: 143,932

Fin 48 Financial Statement Disclosure

SCHEDULE D, PART X, LINE 2 Cato has been granted tax-exempt status as a public charity within the meaning of Section 501(c)(3) of the Internal Revenue Code (IRC). Although the organization is generally exempt from income tax, Cato is subject to unrelated business income taxes under Section 512 of the IRC, as well as subject to excise tax on excess lobbying expenses. There was no unrelated business income or excess lobbying expenses for the years ended March 31, 2015 and 2014; therefore, no provision for income tax has been recorded in the financial statements. Cato believes it has appropriate support for any tax position taken and, as such, does not have any uncertain tax positions that are material to the financial statements. Cato recognizes interest expense and penalties related to income taxes on uncertain tax positions in management and general expenses on the statements of activities and change in net assets and accounts payable and accrued expenses in the statements of financial position. No interest expense and penalties related to income taxes on uncertain tax positions were recognized for the years ended March 31, 2015 and 2014. Tax years prior to 2011 are no longer subject to examination by the Internal Revenue Service or the tax jurisdictions of Kansas and the District of Columbia.

Other Expenses Included on 990 Not on Books

Schedule d, part xi, line 4b change in split-interest agreements: 33,604

Other Revenue Included on Books Not on Return

Schedule d, part xi, line 2d change in split-interest agreements: (33,604)

Raw XML AppendixShowing 400 of 1,071 raw XML fields

This appendix keeps the raw XML leaves available for debugging and edge-case review. The human report above is the primary experience.

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IRS990/Desc0Public policy and research Cato's primary program is public policy, including research and outreach. In order to promote the principles of individual liberty, limited government, free markets, and peace, scholars at the Cato Institute apply a libertarian perspective to a spectrum of relevant research areas: education and child policy; energy and environment; finance, banking, and monetary policy; foreign policy and national security; government and politics; health care and welfare; international economics and development; law and civil liberties; political philosophy; regulatory studies; social security; tax and budget policy; Continued on Schedule O
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