Alliance Defending Freedom

“The organization does not have any committees that have authority to act on behalf of the governing body.”

“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 of directors 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 to state governing bodies, foundations, and other requesting entities.”

“The conflict of interest policy covers any director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest. In addition to those covered individuals, adf is in the process of requiring all key employees and executive staff to annually sign a statement affirming receipt, understanding, compliance and reporting under the policy. 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 proceedings.”

“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, vp hr, and comp & benefits analyst) 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.”

“The organization's audited financial statements and form 990 are available on its web site. Governing documents and conflict of interest policy are available to the public upon request.”

“Foreign currency exchange loss -44,115. Net equity adjustment to 15100 solar investment -32,030.”