Tax Foundation does not meet the following 3 Standards for Charity Accountability:
Standard 3 (Frequency and Attendance of Board Meetings)
An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.
Tax Foundation does not meet this Standard because:
- The board of directors held two meetings in 2021.
Standard 6 (Board Policy on Effectiveness)
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
Tax Foundation does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization?s performance and effectiveness and determining future actions required to achieve its mission.
Standard 14 (Budget)
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
Tax Foundation does not meet this Standard because, when the organization provided 2022 budget information, it indicated that the budget:
- Included total projected program service expenses, however, did not break these expenses down by major program category including federal tax policy, state tax policy, research and communication, global tax reform, and legal programs.
Tax Foundation meets the remaining 17 Standards for Charity Accountability.
Tax Foundation reports that it provides research and analysis regarding tax policy at the global, federal, and state levels with the aim to create policies that lead to economic growth and opportunity. The organization provides tax policy papers and economic modelling and budgetary effects to federal legislators, while also providing state-specific presentations and briefings to state legislators. In 2020, Tax Foundation states that it gave virtual presentations on tax policy and the pandemic to 23 states, released policy reform books in both Alaska and New York, and launched its new educational program, TaxEDU, which teaches tax concepts to college and high school students, taxpayers, and legislative staffers.
For the year ended December 31, 2020, Tax Foundation's program expenses were:
Federal tax policy |
$1,305,296 |
Research and communication |
$1,049,296 |
State tax policy |
$706,371 |
Global tax reform |
$399,389 |
Total Program Expenses: |
$3,460,352 |
*2020 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements
Fundraising costs were 12% of related contributions. (Related contributions, which totaled $5,569,714 are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on Tax Foundation's audited financial statements for the year ended December 31, 2020.
Source of Funds |
Contributions and grants |
$5,315,410 |
Investment income, net |
$369,611 |
Special events, net |
$254,304 |
Honoraria and reimbursements |
$2,490 |
Total Income |
$5,941,815 |
- Programs: 73%
- Fundraising: 15%
- Administrative: 12%
Total Income |
$5,941,815 |
Program expenses |
$3,460,352 |
Fundraising expenses |
$685,755 |
Administrative expenses |
$601,854 |
Other expenses |
$0 |
Total expenses: |
$4,747,961 |
Income in Excess of Expenses |
$1,193,854 |
Beginning Net Assets |
$2,887,249 |
Other Changes In Net Assets |
$0 |
Ending Net Assets |
$4,081,103 |
Total Liabilities |
$1,035,292 |
Total Assets |
$5,116,395 |