Alliance Defending Freedom

Alliance Defending Freedom is committed to transforming law and culture so true freedom can flourish.

Rating Information

This charity's score is 97 %, earning it a Four-Star rating. If this organization aligns with your passions and values, you can give with confidence.

Charity Navigator's ratings previously did not consider Leadership & Adaptability, Culture & Community, or Impact & Measurement. The historic rating mainly reflects a version of today’s Accountability and Finance score. More information on our previous rating methodologies can be found on our rating methodology page.

This organization received multiple star ratings within this fiscal year, due to an update to its Accountability and Transparency data and/or the receipt of an amended Form 990.

Rating Report

• Impact & Measurement
• Accountability & Finance
• Culture & Community
• Leadership & Adaptability

100

This beacon provides an assessment of a charity's financial health (financial efficiency, sustainability, and trustworthiness) and its commitment to governance practices and policies.

Key Accountability Metrics

Majority Independent Board Members - 100% independent members

Industry professionals strongly recommend an independent governing body to allow for full deliberation and diversity of thinking on governance and other organizational matters. We check to see that a majority of board members are identified as independent on their tax form.

Independent Board Size - 6 independent members

Industry professionals strongly recommend an independent governing body to allow for full deliberation and diversity of thinking on governance and other organizational matters. For most organizations, we check to see if the organization has at least three independent board members. For large, donor-funded organizations, we check to see if the organization has at least five independent board members

Financial Statements - Audit and Oversight Committee

An Audit, Review, or Compilation provides important information about financial accountability and accuracy. Organizations are scored based on their Total Revenue Amount:

Material Diversion of Assets - None

A diversion of assets — any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft — also can seriously call into question a charity's financial integrity. We review the charity's most recent IRS Form 990 to see if the charity has reported any diversion of assets.

Tax Form Disclosures and Policies

Website Listed on Tax Form - Listed

Charity Navigator looks for a website on the IRS Form 990 as an accountability and transparency metric.

Conflict of Interest Policy - Listed

Charity Navigator looks for the existence of a conflict of interest policy on the IRS Form 990 as an accountability and transparency measure.

This policy protects the organization and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer, director and/or key employee of the organization.

Whistleblower Policy - Listed

Charity Navigator looks for the existence of a whistleblower policy per the IRS Form 990 as an accountability and transparency measure.

This policy outlines procedures for handling employee complaints, as well as a confidential way for employees to report financial or other types of mismanagement.

Document Retention and Destruction - Listed

Charity Navigator looks for the existence of a document retention and destruction policy per the IRS Form 990 as an accountability and transparency measure.

This policy establishes guidelines for the handling, backing up, archiving and destruction of documents. These guidelines foster good record keeping procedures that promote data integrity.

Documents Board Meeting Minutes - Yes

Charity Navigator looks to confirm on the IRS Form 990 that the organization has this process in place as an accountability and transparency measure.

An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference.

Compensates Board - No

The IRS requires that the charity lists any compensation paid to the charity's governing body members on the IRS Form 990. Furthermore, all governing body members must be listed whether or not they are compensated. Our analysts verify that the charities complied with the Form 990 instructions and that no board members are compensated simply for being on the board.

Tax Form Distributed to Board Before Filing - Listed

Providing copies of the IRS Form 990 to the governing body prior to filing is considered a best practice, as it allows for thorough review by the individuals charged with overseeing the organization. The Form 990 asks the charity to disclose whether or not it has followed this best practice.

Loans to/from Officers - None

Making loans to related parties, such as key officers, staff, or Board members, is not standard practice in the sector as it diverts the charity's funds away from its charitable mission and can lead to real and perceived conflict-of-interest problems.

The IRS requires charities to disclose on their Form 990 any loans to or from current and former officers, directors, trustees, key employees, and other "disqualified persons." Some state laws go so far as to prohibit loans to board members and officers.

Although employees and trustees are permitted to make loans to charities, this practice can also result in real and/or perceived conflict of interest problems for the charity. Furthermore, it is problematic because it indicates that the organization is not financially secure. Our analysts check to see if any loans have been made.

Reports CEO and Compensation on Tax Form - Listed