Tax Foundation
Standards For Charity Accountability
Governance
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Board Oversight
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Board Size
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Board Meetings
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Board Compensation
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Conflict of Interest
Measuring Effectiveness
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Effectiveness Policy
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Effectiveness Report
Finances
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Program Expenses
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Fundraising Expenses
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Accumulating Funds
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Audit Report
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Detailed Expense Breakdown
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Accurate Expense Reporting
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Budget Plan
Fundraising & Info
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Truthful Materials
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Annual Report
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Website Disclosures
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Donor Privacy
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Cause Marketing Disclosures
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Complaints
Tax Foundation does not meet the following 3 Standards for Charity Accountability:
Standard 1 (Oversight of Operations and Staff)
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
Tax Foundation does not meet this Standard because its board of directors did not:
- Ensure that the organization‘s arrangements with outside fundraising firms were made in writing.
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 2023.
Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
Tax Foundation does not meet this Standard because:
- Although it produced a written effectiveness assessment report for its April 2024 effectiveness assessment, the report did not include recommendations for future actions and the report was not submitted for approval to the board of directors.
The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability: 14
Tax Foundation meets the remaining 16 Standards for Charity Accountability.
Stated Purpose:
"to improve lives through tax policies that lead to greater economic growth and opportunity."
Year, State Incorporated:
1990, DC
Tax Foundation reports that it advances the principles of sound tax policy at the federal and state levels: simplicity, neutrality, transparency, and stability. The organization advances its policy positions of tax code simplification and overall tax reduction for the average American through research and policy reports, capitol hill briefings, congressional testimony, and economic and budgetary modeling presentations. Tax Foundation also offers TaxEDU online educational videos, along with a blog series.
For the year ended December 31, 2023, Tax Foundation's program expenses were:
Federal tax policy: $1,975,372
Marketing and communication: $1,467,546
State tax policy: $1,017,674
Global tax reform: $654,990
Total Program Expenses: $5,115,582
Chief Executive
Daniel D. Bunn, President and Chief Executive Officer
Compensation*
$228,567
Chair of the Board
David P. Lewis
Chair's Profession / Business Affiliation
Managing Director, President, and Chief Executive Office, DPL Advisory & Investments, LLC
Board Size
14
Paid Staff Size
40
*2022 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: Former President Scott Hodge was the highest compensated employee, receiving $363,377 in compensation.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Direct mail appeals, Radio
Fundraising costs were 15% of related contributions. (Related contributions, which totaled $7,701,679, 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, 2023.
Source of Funds
| Grants and contributions | $7,146,695 |
| Special events, net | $529,451 |
| In-kind contributions | $25,533 |
| Investment income, net | $554,004 |
| Total Income | $8,255,683 |
Programs: 74% Fundraising: 17% Administrative: 10%
| Total Income | $8,255,683 |
| Total expenses: | $6,957,249 |
| Program expenses | $5,115,582 |
| Fundraising expenses | $1,162,266 |
| Administrative expenses | $679,401 |
| Other expenses | $0 |
| Income in Excess of Expenses | $1,298,434 |
| Beginning Net Assets | $5,205,845 |
| Other Changes In Net Assets | $0 |
| Ending Net Assets | $6,504,279 |
| Total Liabilities | $1,763,825 |
| Total Assets | $8,268,104 |
Note: According to Tax Foundation's 2023 audited financial statements, the organization received $25,533 in donated goods.
An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the International Association of Better Business Bureaus.
This report is not to be used for fundraising or promotional purposes.
RELATED CONTENT
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Meets Standards
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Standards Not Met
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Did Not Disclose
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Review in Progress
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Unable to Verify
Report completed by:
BBB Wise Giving Alliance