Adf Foundation

“Alan Sears, Vice Chairman/Director, and Janet Bitzko, Assistant Treasurer, have a family relationship.”

“The person who acts as President and CEO of Alliance Defending Freedom shall automatically, upon assumption of such office, become a Director of the Foundation with full voting power during his/her tenure in office. The remaining Directors shall be appointed by the Alliance Defending Freedom governing board at an annual meeting during each fiscal year at a date determined by such governing board.”

“The Foundation's bylaws prohibit taking "substantial action" without the approval of the Alliance Defending Freedom board of directors. "Substantial action" means (1) Merging with another corporation or entity; (2) Dissolving the Foundation; (3) Guaranteeing the obligations of another entity or individual; or (4) Selling or transferring all or substantially all (eighty percent (80%)) of the assets of the Foundation.”

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

“The Form 990 is prepared by an independent CPA firm. Upon completion, the Finance Team of Alliance Defending Freedom (ADF), a related organization, reviews the ADF Foundation Form 990 through the following process: 1) ADF CFO and ADF Controller compare the Form 990 to the annual corporate consolidated audited financial statements and internal financial reports. The Form 990 is then reviewed by the ADF Foundation President and Corporate General Counsel for content and clarity. 2) The ADF CFO assigns the ADF Controller and ADF Finance Team to review calculations, spelling, and content. 3) Following the review, the Form 990 is distributed to: A. ADF CFO B. ADF Foundation President and Corporate General Counsel C. ADF Foundation Treasurer and Assistant Treasurer D. The Finance and Audit Committee of ADF 4) The Finance and Audit Committee review the Form 990 for questions, material edits, and compliance. 5) Changes and corrections throughout the process are addressed at each step. 6) Upon acceptance, the Finance and Audit Committee approve filing the Form 990. 7) The ADF Foundation President and Corporate General Counsel signs the Foundation Form 990 and causes it to be filed with the IRS. 8) Upon filing with the IRS, the ADF Foundation Form 990 is available for public inspection.”

“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. Annually, each covered person is required to sign a statement affirming receipt, understanding, compliance and reporting under the policy. The Foundation 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 Foundation. 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.”

“ADF Foundation does not compensate any officers or key employees. Therefore, these lines were answered no in accordance with the instructions.”

“ADF Foundation makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“The amounts reported on Form 990, Part IX, Lines 7 - 10 are reimbursements paid to a related organization for time spent by its employees on Foundation matters. The related organization files all required payroll tax forms for the employees.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2019. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $998,770 Line 29 - Net assets with donor restrictions 325,246 __________ Total net assets $1,324,016”

“The increase in total liabilities by $6,566,676 includes the $4,014,755 net increase in the amount payable to Alliance Defending Freedom related to the prior period adjustment (per Part XI, Line 8). The remainder of the increase in total liabilities reflects the effect of the current year net operations and increase in investments held for Alliance Defending Freedom The decrease in net assets by $3,870,656 includes the $4,014,755 prior period adjustment (per Part XI, Line 8). The remainder of the change in net assets reflects the current year net surplus. Investments held by ADF Foundation on behalf of Alliance Defending Freedom total $10,014,151 and are included in Investments reported on Part X Line 11. A corresponding liability as Investments Held for Related Organization is reflected in Other Liabilities in Part X, Line 25.”

“The Prior Period Adjustment to net assets of $4,014,755 as reported on ADF 990 Part XI, Line 8 is a net of the following: - Reclassification of $5,783,519 from ADF Foundation to ADF of prior years' estate and endowment gifts. - Reclassification of $1,300,728 from ADF Foundation to ADF of prior years' investment income related to investments held on behalf of Alliance Defending Freedom by ADF Foundation. - Reclassification of ($3,069,492) from ADF Foundation to ADF of prior years' seconded salaries and benefits, along with operating and marketing costs.”