American Advertising Federation Inc

Nonprofit profile at a glance

EIN
132581875
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Washington, DC, USA
Phone
2028980089
Rating
68
Verdict
SUPPORTED
Rating confidence
Moderate

Official website

Reported finances

Revenue
$8,774,905
Expenses
$8,418,010
Assets
$5,887,023
Liabilities
$2,538,213

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

108 people listed

Executive titles in this filing

  • EDMUND DATRI JAMES (PRESIDENT EMERITUS)
  • PACHECO STEVE (PRESIDENT & CEO)
  • SNYDER WALLY (PRESIDENT EMERITUS)
  • RECTOR CLARK (EXECUTIVE VICE PRESIDENT)
  • LIPSCOMB ADRIANNE (VICE PRESIDENT, CREATIVE S)

Highest reported compensation

  • PACHECO STEVE (PRESIDENT & CEO): $622,848 total reported compensation
  • RUBIN LISA (EVP, CORPORATE PARTNERSHIP): $270,984 total reported compensation
  • RECTOR CLARK (EXECUTIVE VICE PRESIDENT): $176,017 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

American advertising federation, inc. Was established to provide leadership and cultivate, promote, and disseminate knowledge and information on issues involving and affecting advertising.

What it reported doing in 2024

The american advertising awards is the advertising industry's largest and most representative competition, attracting more than 25,000 entries every year in local aaf ad club competitions. The mission of the american advertising awards is to recognize and reward the creative spirit of excellence in the art of advertising.conducted annually by the aaf, the local tier of the american advertising awards is the first of a three-tier, national competition. Concurrently, across the country, local entrants vie to receive an addy award--recognition as the very best in their markets. At the second tier, local addy winners compete against winners from other local clubs in one of 15 district competitions. District addy winners are then forwarded to the third tier, the national stage of the american advertising awards. Entry in your local competition is the first step toward winning a national addy. Entering the american advertising awards supports the entire advertising industry, because the aaf and its local and district affiliates use the proceeds to enhance advertising through programs such as public service, internships, advocacy groups, advertising education, and consumer awareness. Selection of the most creative entry in each category is affected by a scoring process in which a panel of judges evaluates all creative dimensions of every entry. A gold addy is recognition of the highest level of creative excellence and is judged to be superior to all other entries in the category. Entries that are also considered outstanding and worthy of recognition receive a silver addy. The number of awards given in each category is determined by the judges, based on the relative quality of work in that category.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Direct operator. The filing allocates 98% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 60
  • Transparency & Controls: 65
  • Accountability: 90
  • Sustainability: 35
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 66.2%; rating input score 66
  • Program expense ratio: 68.8%; rating input score 69
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 99%; rating input score 99; 27th percentile among comparable filings
  • Governance controls: 7 of 9 controls in place; rating input score 78
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 4.1%; rating input score 48; 48th percentile among comparable filings
  • Total-asset coverage ratio: 0.7; rating input score 26; 26th percentile among comparable filings
  • Liabilities to assets ratio: 0.43; rating input score 25; 25th percentile among comparable filings
  • Officer compensation ratio: 17.8%; rating input score 15; 15th percentile among comparable filings

Growth

  • Program expense growth: 16.9% per year; rating input score 100; 81st percentile among comparable filings
  • Revenue growth: 1.4% per year; rating input score 100; 17th percentile among comparable filings
  • Asset growth: 5.9% per year; rating input score 100; 39th percentile among comparable filings

Details

  • Where the money goes: 66.2% of revenue deployed · 68.8% of spending went to programs
  • Governance: 102 of 103 board members independent · 7 of 9 filing controls reported
  • Programs: 3 filed program accomplishments · $5.8M in reported program spending
  • Leadership: top reported pay $623K · 108 people listed · 0 of 6 pay-setting controls reported
  • Highest-paid contractors: 1 contractor listed · $538K reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 6 filed schedules · includes major donors and executive pay
  • Filing history: 11 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 6 filed money-flow records
  • Related organizations: 1 filed related-organization link
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Transparency & Controls: Pay-setting controls scored 0/100.
  • Moderate — Sustainability: Operating margin scored 48/100.
  • High — Sustainability: Total-asset coverage ratio scored 26/100.
  • Review — Accountability: Governance controls: Other executive compensation review process not reported.
  • High — Sustainability: Officer compensation ratio scored 15/100.
  • High — Sustainability: Liabilities to assets ratio scored 25/100.