Freedomworks Inc
Nonprofit profile at a glance
- EIN
- 521349353
- IRS 990 coverage
- 2011–2023
- Forms available
- Form 990 2023
- Location
- Washington, DC, USA
- Phone
- 2027833870
- Rating
- 82
- Verdict
- STRONG
- Rating confidence
- Standard
Reported finances
- Revenue
- $2,895,466
- Expenses
- $4,015,051
- Assets
- $9,771,365
- Liabilities
- $12,868,398
Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.
Leadership & pay
16 people listed
Executive titles in this filing
- ADAM BRANDON (PRESIDENT)
- NOAH WALL (EXEC. VICE PRESIDENT (UNTIL 3/7/23))
- MARGARET IUCULANO (EXEC. VICE PRESIDENT (3-8/2023))
Highest reported compensation
- ADAM BRANDON (PRESIDENT): $400,601 total reported compensation
- JOHN TAMNY (DIR. CENTER FOR ECONOMIC FREEDOM): $219,395 total reported compensation
- MARGARET IUCULANO (EXEC. VICE PRESIDENT (3-8/2023)): $215,845 total reported compensation
Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.
Overview
Mission
Freedomworks exists to mobilize the center right and politically homeless in america who do not feel their values of limited government, social tolerance, and individual liberty are being represented in political discourse today. We seek to restore common sense and competence to public policy and american political life.
What it reported doing in 2023
Grassroots mobilization, community building, and lobbying: training, education, equipping, engaging, and mobilizing constituents across the country to advocate for limited government and liberty at the local, state, and federal level. Freedomworks, inc. Bolsters the effectiveness of its grassroots mobilization through research and direct lobbying of members of congress.
Operating model
- Revenue model
- Donor-supported. 100% 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
STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Fundraising costs are high for each dollar raised and expenses are high relative to revenue.
Rating breakdown
- Financial Efficiency: 87
- Transparency & Controls: 95
- Accountability: 84
- Sustainability: 24
- Growth: 20
Detailed rating inputs
Financial Efficiency
- Mission deployment rate: 100%; rating input score 100
- Program expense ratio: 78.1%; rating input score 78
- Fundraising efficiency: $12.46 raised per $1 spent on fundraising; rating input score 45; 45th percentile among comparable filings
Transparency & Controls
- Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
- Pay-setting controls: 5 of 6 controls in place; rating input score 83
- Compensation committee: Pass
- Independent consultant: Pass
- Other Form 990s reviewed: Pass
- Written employment contract: Missing
- Compensation survey or study: Pass
- Board or committee approval: Pass
- Foreign activity oversight: Limited
- Grant itemization coverage: Limited
- Major donor itemization: Yes; rating input score 100
- Related-party transparency: Limited
Accountability
- Independent voting board: 88.9%; rating input score 89; 20th 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: Pass
- Form 990 shared with the board: Pass
- Board meeting minutes documented: Pass
- Audit committee oversight: Missing
- Independent financial-statement audit: Fail
Sustainability
- Operating margin: -38.7%; rating input score 3; 3rd percentile among comparable filings
- Total-asset coverage ratio: 2.43; rating input score 69; 69th percentile among comparable filings
- Liabilities to assets ratio: 1.32; rating input score 3; 3rd percentile among comparable filings
- Officer compensation ratio: 15.5%; rating input score 17; 17th percentile among comparable filings
Growth
- Program expense growth: -4.5% per year; rating input score 0; 6th percentile among comparable filings
- Revenue growth: -7.8% per year; rating input score 0; 3rd percentile among comparable filings
- Asset growth: 3.2% per year; rating input score 100; 26th percentile among comparable filings
Details
- Where the money goes: 100% of revenue deployed · 78.1% of spending went to programs
- Governance: 8 of 9 board members independent · 7 of 9 filing controls reported
- Programs: 1 filed program accomplishment · $3.1M in reported program spending
- Leadership: top reported pay $401K · 16 people listed · 5 of 6 pay-setting controls reported
- Highest-paid contractors: 5 contractors listed · $671K reported
- Consistency: 30 of 30 current checks pass
- Schedules: 6 filed schedules · includes major donors and executive pay
- Filing history: 13 filing years from 2011 to 2023
- Contacts: How to reach this organization
- Money network: 8 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.
- Moderate — Financial Efficiency: Fundraising efficiency scored 45/100.
- High — Sustainability: Operating margin scored 3/100.
- High — Growth: Program expense growth scored 0/100.
- High — Growth: Revenue growth scored 0/100.
- Review — Accountability: Governance controls: Independent financial-statement audit not reported.
- High — Sustainability: Liabilities to assets ratio scored 3/100.
- High — Sustainability: Officer compensation ratio scored 17/100.