Liberty Counsel

What it reported doing in 2014

LITIGATION: (See Schedule O for description.)LITIGATION: LC staff includes attorneys who assist individuals, organizations, and churches on a pro bono basis with legal issues regarding religious liberty, the sanctity of human life, and the family. LC is committed to representing clients without regard to their ability to pay. Without assistance, most clients could not afford to assert their constitutional rights in court. LC handled more than 800 telephone calls and many hundreds of additional emails and letters requesting legal assistance during the past fiscal year. A total of 149 cases were in active litigation in state or federal courts or had pre-suit status under LC management. Although the vast majority of legal situations brought to LC are resolved without filing lawsuits, litigation that is publicized through our media outreach serves an educational purpose by informing the public regarding constitutional law. Quality in litigation is of paramount importance to LC, especially since most of the cases falling within its mission are likely to create important legal precedent for future cases. In a well-documented doctoral dissertation, Professor Hans Hacker concluded that LC accomplishes more with its resources than any other similar legal organization. The following brief synopsis of the hundreds of cases and other legal actions LC undertook for the fiscal year is a small sample of actual activities. The highlights listed below illustrate the motto: Restoring the Culture by Advancing Religious Freedom, the Sanctity of Human Life, and the Family.Advancing Religious Freedom: Successfully defended a student in Nassau County, Florida, after he faced wrongful persecution following a complaint by an atheist organization for stating "God bless America" while delivering a school public announcement. The school district apologized and said it will now welcome such messages from students. Stopped Lake Worth, Florida, zoning officials from harassing churches with threats and videotaping services in an effort to force churches to obtain a business license or close. The churches were being targeted for harassment by a homosexual city council member. Presented oral argument at a federal court of appeals and resolved many cases involving Child Evangelism Fellowship Good News Clubs in multiple states where school districts formerly discriminated against the Christian clubs in terms of use of the facilities, time of use, fees, and announcements or advertisements. Filed an important brief at the U.S. Supreme Court urging the Court to return to the original intent of the First Amendment Establishment Clause and abandon its confused line of cases that allow an "offended" observer power to censor religious words or displays. Continued to fight against the ObamaCare law and the HHS Employer Mandate, which requires that employers provide contraceptives and abortion-inducing drugs and devices. Filed briefs at the Supreme Court and other federal courts of appeal challenging the contraceptive and abortion mandate and the federal subsidies. Defended the constitutional rights of students who are members of Fellowship of Christian Athletes in Lake County, Florida, where the school district was seeking to restrict access and limit the right to meet on campus. Filed an amicus brief with the Supreme Court, which subsequently ruled in Town of Greece v. Galloway that opening a town meeting in prayer does not violate the Establishment Clause of the First Amendment. Defended the Allegheny County Council after an atheist organization opposed the display of the national motto, "In God We Trust." Successfully defended homeowners in Kissimmee, Florida, when they faced religious discrimination from their homeowner's association that tried to stop the couple from displaying two small statues of Mary and Jesus while allowing other homeowners to display human skulls and topless Greek statues. Filed an important brief at the U.S. Supreme Court to defend the right

Financial Efficiency

• Mission deployment rate: 82.5%; rating input score 83
• Program expense ratio: 87.3%; rating input score 87
• Fundraising efficiency: $23.34 raised per $1 spent on fundraising; rating input score 67; 67th percentile among comparable filings

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 7th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Scored; rating input score 0
• Grant itemization coverage: 99.1%; rating input score 99; 34th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 62.5%; rating input score 62; 10th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • 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: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 5.5%; rating input score 59; 59th percentile among comparable filings
• Total-asset coverage ratio: 0.51; rating input score 25; 25th percentile among comparable filings
• Liabilities to assets ratio: 0.43; rating input score 32; 32nd percentile among comparable filings
• Officer compensation ratio: 10.1%; rating input score 22; 22nd percentile among comparable filings

Growth

• Program expense growth: 33.5% per year; rating input score 100; 91st percentile among comparable filings
• Revenue growth: 6.1% per year; rating input score 100; 59th percentile among comparable filings
• Asset growth: 19.9% per year; rating input score 100; 86th percentile among comparable filings