Foundation for Rational Economics and Education Inc

Nonprofit profile at a glance

EIN
742066841
IRS 990 coverage
2019–2024
Forms available
Form 990 2024
Location
Lake Jackson, TX, USA
Phone
9792653034
Rating
63
Verdict
SUPPORTED
Rating confidence
Standard
Sector
Television

Reported finances

Revenue
$734,831
Expenses
$853,493
Assets
$920,893
Liabilities
$0

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

Leadership & pay

3 people listed

Executive titles in this filing

  • CAROL PAUL (PRESIDENT & SEC)

Highest reported compensation

  • DANIEL MCADAMS (SPECIAL PROJECTS DIRECTOR): $146,000 total reported compensation

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

Overview

Mission

The Foundation for Rational Economics & Education, Inc. (F.R.E.E.) is a non-partisan organization dedicated to public education on the principles of free-market economics, sound money & limited government.

What it reported doing in 2024

Continued emphasis on the education of economic & social issues through publications and broadcasts.

Operating model

Revenue model
Donor-supported. 94% of the money available for current operations came from contributions and gifts.
Distribution model
Direct operator. The filing allocates 100% 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 - The filed numbers largely add up and a large share of available resources goes toward mission work. A relatively small share of voting board members are independent and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 60
  • Transparency & Controls: 100
  • Accountability: 24
  • Sustainability: 32
  • Growth: 60

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 66.2%; rating input score 66
  • Program expense ratio: 56.6%; rating input score 57
  • Fundraising efficiency: $11.73 raised per $1 spent on fundraising; rating input score 43; 43rd percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 0%; rating input score 0; 5th percentile among comparable filings
  • Governance controls: 4 of 7 controls in place; rating input score 57
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: NotApplicable
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -16.1%; rating input score 12; 12th percentile among comparable filings
  • Total-asset coverage ratio: 1.08; rating input score 45; 45th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 91; 91st percentile among comparable filings
  • Officer compensation ratio: 17.1%; rating input score 19; 19th percentile among comparable filings

Growth

  • Program expense growth: 17.8% per year; rating input score 100; 80th percentile among comparable filings
  • Revenue growth: -0.1% per year; rating input score 0; 14th percentile among comparable filings
  • Asset growth: 2.2% per year; rating input score 100; 26th percentile among comparable filings

Details

  • Where the money goes: 66.2% of revenue deployed · 56.6% of spending went to programs
  • Governance: 0 of 2 board members independent · 4 of 7 filing controls reported
  • Programs: 1 filed program accomplishment · $483K in reported program spending
  • Leadership: top reported pay $146K · 3 people listed
  • Consistency: 23 of 23 current checks pass
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 5 filing years from 2019 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • 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 — Accountability: Independent voting board scored 0/100.
  • Review — Financial Efficiency: Program expense ratio scored 57/100.
  • Review — Accountability: Governance controls: 2 of 6 not reported.
  • Moderate — Financial Efficiency: Fundraising efficiency scored 43/100.
  • High — Sustainability: Operating margin scored 12/100.
  • High — Growth: Revenue growth scored 0/100.
  • Moderate — Sustainability: Total-asset coverage ratio scored 45/100.
  • High — Sustainability: Officer compensation ratio scored 19/100.